The Determinants and Barriers of Outsourcing Third-Party Online Delivery: Perspectives of F&B Entrepreneurs in Malaysia

• Published in: The Journal of Asian finance, economics, and business Vol. 8; no. 5; pp. 979 - 986
• Main Authors: SIN, Kit-Yeng, LO, May-Chiun, MOHAMAD, Abang Azlan
• Format: Journal Article
• Language: Korean
• Published: 한국유통과학회 30.05.2021; Korea Distribution Science Association
• Subjects: Determinants; Outsourcing; Behavioural Reasoning Theory; Entrepreneurs; Barriers
• ISSN: 2288-4637; 2288-4645

Online food delivery and food delivery apps have continued to grow exponentially in Malaysia. Fundamental aspects in entrepreneurship of the food and beverage industry, such as knowledge and attitudes towards online food delivery services being outsourced, have yet to be extensively recognized. The present study intends to explore this area of subject matter within the Malaysian context by using behavioral reasoning theory. The actual interview for this study took place in May 2020, and 14 interviews had been carried out. All interviews were audio-recorded with the consent from the respondents for reference purposes and subsequently transcribed verbatim. The transcripts were then checked against audio records. Content analysis was used to analyze the transcripts by focusing on n frequency counts and coding of themes. A qualitative method has been adopted by employing an interview to elicit the perspectives of entrepreneurs from Sarawak on the determinants and barriers in outsourcing online food delivery services. Results indicate that high potential in revenue, broad exposure to reach customers, convenience, and provision of job opportunities are the four factors that determine to outsource. In contrast, food quality maintenance, trustworthiness, high cost incurred, and consumer technology resistance are four factors that serve as barriers towards outsourcing third-party online delivery.