Publisher: Asian Economic and Social Society ISSN: 2225-4226 Volume 2 No. 12 December 2012.

Strategy of Using Wireless Technology Sophistication for Rural Community Development in Malaysia

Abdul Manaf Bohari (School of Business Management, UUM College of Business, Universiti Utara Malaysia)

Zainal Md. Zan (UUM College of Law, Government and International Studies, Universiti Utara Malaysia)

Citation: Abdul Manaf Bohari and Zainal Md. Zan (2012) “Strategy of Using Wireless Technology Sophistication for Rural Community Development in Malaysia”, Journal of Asian Business Strategy, Vol. 2, No. 12, pp. 284 - 290.

Journal of Asian Business Strategy, 2(12), pp. 284 - 290.

Strategy of Using Wireless Technology Sophistication for Rural Community Development in Malaysia Abstract

Community developmnent currently is change dramatically with increased the needs of wirelss technology sofistication as a major part of social life. In contact of Malaysia, wireless technology, has been introduced to rural, semi-rural and hidden Author(s) area areas where there are some questions regarding the Abdul Manaf Bohari wireless sofistication needs and requirement. The questions School of Business Management, are (a) what is interest of non-urban people on usage the UUM College of Business, wireless technology; and (b) what is factor that make them to Universiti Utara Malaysia used wireless technology in their social life. The objective of study is to explore the needs of rural people toward wireless Zainal Md. Zan sophistication with focused on wireless specifications and UUM College of Law, features. The second objective is to explore factors that Government and International Studies, Universiti Utara considers by rural-community regarding their adoption to Malaysia wireless technology. To conduct this study, un-structured interview were conducted to 40 respondents in selected rural, semi-rural and hidden area of Malaysia-Thailand bourder as well as Sintok, Changlun, Bukit Kayu Hitam, and Bukit Tangga in Kedah. Furthermore, this study will present the clear description of the need of wireless technology that needed by rural society. The finding of study will lead to establish guideline on how to utilize wireless technology for developing the society of rural area in Malaysia, as effectively.

Keywords: Strategy, Wireless Sophistication; Community Development; Rural Area; Malaysia

Introduction the society, which should result in an agile, powerful, efficient, effective, and creative as Recently, rural community developmnent today mention by Maignan and Lukas (1997) and is change dramatically with increased the needs Laudon and Laudon (2012). In fact, the most of wirelss technology as a part of social life. basic ways that will bring this technology to Every person today has experienced at least one individual and society is by linking a personal of the wireless based telecommunication computer to any related devices to wireless sophistication such as cell phone, Internet, telecommunication as mention by Ting and online game, wireless devices, and so on as Grant (2005); Senn (2008), and Turban, cited by Chou and Hsiao (2000); Bourdeau, et McLean and Wetherbe (2009). In the future, al., (2002); Greenfield and Davis (2002); voice mails can easly sent and received by cell Kroeber (2005); Kroenka (2006); O‟Brian phone as the wireless based telecommunication (2010), and Laudon and Laudon (2012). and networking are becoming more Telecommunications networks especially sophisticated and advance, with variety wireless network are extremely important to the features. global society knowledge development today; and without it most users would not be able to In perspective of community development, survive in the information age era (Legris, et many enterprises nowadays, are adopting al., 2003; Laudon & Laudon, 2012). On the policies on wireless based telecommuting and other hand, the users should be selected on the networking which enable their employees to appropriate telecommunication applications to work away from the office as coined by Rogers and Allbritton (1995). This is called

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„Teleworking‟ which allow their staff to work to keep on tracks and stay more easily in high in any places outside the office, by using touch with online networking, new personal computers and wireless networks as opportunities of business, developed new model mention by Rayport (2002), Hassini (2006), and of business and many more. In addition, O‟Brian (2010), which this can make them to wireless networks also make additions, moves, work based on mobility place. One of the and changes much easier as compared to the telecommunication applications that can be wired based technology. used is videoconferencing. This application can reduce time and increase the effectiveness of Practically, there are six important dimensions the action taken as a result to faster response to that interact each other in community society need, in-depth investigation on society development. The six dimensions are social problems, using and access to various development, economic development, political resources, real time meeting to people, and less development, cultural development, duplication of effort by geographically environmental development and personal/ dispersed sites. Beside these interesting work, spiritual development (Tesoriero, 2010). why is the factor driven the society on accepted Economic growth is a major catalyst in nation this kind of technology? and community development (Misra, 1982). This is because economic activities enable the From a vast literature review survey, wireless growth of other important activities such as technology is an important platform for such as educations, transportations and ethics community to socilizing their daily life and to (Ali, 1976). Development also includes changes get connection to the Internet and other kind of in structure of society, attitudes and institutions wireless-based resources. In the case of besides the restructuring and re-orientates the Malaysia, wireless technology, has been social and economic system, increase incomes introduced early to urban or metropolitan areas and production, changes in social institutions where the society are highly demand on it. and administrations structures, and beliefs However, in some place, such as rural, semi- (Todaro 1977). In term of community rural and hidden area, there are some questions development, wireless technology has been the regarding wireless technology. The questions source and inspiration of new idea, channels, are (a) what is attention of non-urban people on products, services, and communication channels usage the wireless technology; and (b) what is because wireless based technology will create factor that make them interested to used more chances to people to be more creative and wireless technology in their social life. The innovative to customers. Aladwani (2003) objective of study is to explore the needs of coined that technology as such wireless non-rural people toward wireless technology technology also helps the firms to increase their with focused on wireless specifications and communication and access to society with features. The second objective is to explore variety of information, including the factors that considers by rural-community information resources of the Internet. regarding their adoption to wireless technology. Furthermore, wireless communication helps businesses to stay more effectively with their Selected Literature Review external and internal partners as mention by O‟Brian (2010) and helps in establishing new Theoretically, community development is a channel for at least two ways communication process to improve quality of life for a better (Turban, et al., 2009). In addition, living standard. Development of a community sophistication for wireless transmission include is closely related with dynamic process which pagers, e-mail handhelds, personal digital occurs within that community. Development is assistants, cellular telephones, smart phones, an important concept in Developing Countries and personal computers will become more because it brings change and progress (Hashim, sophisticated in future as derived by current 2005). From the society point of view, scholars demand of society customers (Laudon & Turban, et al., (2009); O‟Brian (2010), and Laudon, 2012) as includes people from rural Laudon and Laudon (2012) believed wireless areas. technology can provide new value to the society

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Community development need a fully effort through the development of ICT been stated in from all parties especially the affected Ninth Malaysia Plan. Its shows that Malaysia communities. Elements of the cooperation and always focus on minimize the digital divide collaboration are an important aspect for it to within urban and rural areas. In addition, the succeed in bringing a better quality of life mainstreaming information and communi- (Mohammad, 2003), as similay function of cations technology where cited that the country wireless telecommunication sophistication as will need to increasinglyharness ICT to improve mention by Laudon and Laudon (2012). In productivity and competitiveness as well as addition, community development provides a progressto high value added and knowledge- clear framework to enable the affected intensive economic activities. The Govern- communities working together and help each mentwill build upon and enhance ICT capacity other, sharing a vision and responsibility. for ubiquitous access, develop core Community development also makes the competencies, narrow the digital divide and community become independent and have high expand usage of electronic transactionsas part self-esteem. This attitude enables the of the overall effort to empower the populace to community to determine the direction of their partake in the growingnetworked economy. lives and identify problems that arise. In term of Simultaneously, this will allow for the greater wireless technology, the Institute of Electrical expansionof ICT-related industries and services and Electronics Engineers (IEEE) has (Ninth Malaysia Plan, 2006). This is close established a hierarchy of complementary similar to the fundamental of wireless-based standards for wireless based networks and these technology that was potential to support include Bluetooth, Wi-Fi, WiMax, and so on activities and societal development of rural where can support some part of community community, as mentioned by Laudon and development as discussed by Tiwana (2001); Laudon (2012), O‟Brian (2010) and Turban, et Schumacher and Morahan-Martin (2001); al., (2009). Weiss (2002); and Venkatesh, et al. (2003). Recently, the changes of community In Malaysia, community development has been development include various aspects of life to implemented continuously in tandem with enable a holistic improvement of life. Wireless economic development. An active development technology innovation will become more of the county economy has been implemented significant to all of society as the industries are since 1970 when Dasar Ekonomi Baru (NEP) now giving more expectation on using wireless introduced. There are two main goal of NEP based technology. In fact, the focus of ICT which is poverty eradication and economic development as in Ninth Malaysia Plan (2006) restructuring to eliminate the identification of in include: ethnicity with economic function. The main catalyst sectors of development also has been i. enhancing Malaysia‟s position as a global focused were formulated in Malaysia ICT and multimedia hub; Development Plan introduced by the ii. expanding the communications network to government with the goal of implementing the ensure more equitable accessto information Malaysian New Economic Policy (NEP). and services; Various programs were implemented to iii. intensifying efforts at bridging the digital improve the quality of rural areas community divide; including human capital and institution iv. developing the existing cybercities as well development, poverty eradication, providing as promoting new cybercentresand MSC basic infrastructure and social utilities, multimedia applications; entrepreneurship and industrial program, v. fostering new sources of growth in the ICT education and health facilities, communications sector including bioinformatics,a network as well as land and regional convergence of biotechnology and ICT; development (Malaysia 2006). vi. developing skilled ICT workforce; vii. accelerating e-learning acculturation; and Beside the NEP, Government's efforts to viii. enhancing information security. improve the quality of life of rural communities

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In addition, the important of ICT as a catalyst of  Provides a single ICT infrastructure for community development also stressed in Tenth transmitting voice, data, graphic, and video Malaysia Plan. Government has set a target of applications. raising household broadband penetration to 75  Voice, e-mail, text, audio, video, and percent by the end of 2015 through two main many kind of information can be combined initiatives including High-Speed Broadband into a single directory and it‟s better than (HSBB) and Broadband to General Population using separate files or databases. (BBGP), which leverage bothwired and  Real time services as well as Internet wireless technologies. The internet access seen calls using video and web sites portal that as key economic enabler that potentially change enables users to reach a live experience. the way of community life. This is because an  Offers more flexibility to society as increasing in household internet access can phones can be easily added, replace, or increase the socio-econimic growth. moved to different location without rewiring or reconfiguring the network. Methodology  Reducing service, travel, installing, and any related fees normally charged by To conduct this study, un-structured interview telecommunications companies. was adopted for get better understand of  Virtual calls can be set up by using respondent‟s opinions on the issues. The area of special features as provided by VoIP study is selected village in selected rural, semi- thereby eliminating the need and expense rural and hidden area of Malaysia-Thailand for operator assistance. bourder as well as Sintok, Changlun, Bukit Kayu Hitam, and Bukit Tangga in Kedah. Wireless Technology in Social-Life Totally, there are 40 respondents of was taken In the real world, there are some benefits that as respondent of the study. The interview could be gained by the society when they utilize session is conducted about 20-30 minutes with the usage of wireless devices. From respondent focused on: point of view, as 37 of 40 respondents (a) What is attention of non-urban people on perceived that possible benefits could be usage the wireless technology with focused on includes: benefits of it. (b) What is interest that make them to used  Mobile commerce agents could do wireless technology in their social-life? product demonstrations, checking items, (c) The needs of non-rural people toward manage inventory, collect debts, and place wireless technology with focused on wireless orders online while being at the customer‟s specifications and features of technology. location. (d) The factors that considers by rural-  Mobile devices consume less time community regarding their adoption to wireless among the staffs and at the same time they technology. are able to reduce the time needed to locate other employees, especially when they are Results and Discussions off-site.  A mobile device offers many options Benefits of Wireless Technology to customers and with the help of smart Majority of respondents as 38 of 40 respondents reminder tools; it is able to keep employees are perceived that some of the benefits gained abreast of any important news when they from using wireless technology as well as cell are away on travel such as conferences, phone, Wi-Fi, blue tooth, and so on are: meetings, and presentations.  Using mobile devices will help the  Deduction of communication, network society to increase available productive and management related costs. time, as constant connectivity allow  It is a simple way to add new services, activities to be performed anytime features and innovation for users. anyplace.

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Wireless Specifications and Features of Determine what areas have no compelling Technology need for wireless such as deskbound Most of respondent as 39 of 40 respondents has employees in finance or customer service. identified some current trend on wireless  Cost exceeds the benefit to be gained specifications and features that will provide by providing wireless as such Wi-Fi in a some benefits to them. The current community development plant that would specifications and features related to wireless require numerous additional access points technology that are include: than usual.  Security of information available via  Rapid innovation and new ideas which the Wi-Fi system or any other of wireless has resulted in a proliferation of new technology. Delay implementation until hardware devices and new alternatives for security assurances are met. societal communications purposes.  Highly growth in high-speed Suggestions broadband technology connections In the future, the insatiable demand for wireless especially to homes and daily activities technology and gadgets, video on-line, and any purposes. kind of web-enabled in everywhere will be the  Faster growth in wireless based driving force behind developments in application such as smart phones, wireless telecommunications and networking related computer, wireless networks, mobile technologies. At the same time, competition are Internet devices, and many more. getting fierce as companies are using all types  Expanding scope of communication- of technology in order to conquer markets intense services and products, such as place, and stay ahead with the demands of their Internet telephone, telephone television, customers, suppliers, channel, distributors, telephone photography, smart online society members, and even their competitors. database, and so on. For that, demand for wireless is expected to  Differences between grow at a rapid pace and wireless based access telecommunication devices such as to the Internet, intranets, and extranets is telephone, cable television, Internet, and growing faster as more web-enabled satellite telecommunications providers information appliances proliferate. These can have blurred and each type of network create benefits of wireless sophistication to the supplier seeks to provide audio, video, rural society which can provide more tools to voice, and data connectivity in one or them in term of social-economic development. single network. For Malaysia, the rural society must work hard  Growing dominance will occur in any on exploring the latest sophistications of kind of Internet technologies such as voice, telecommunication and networking technology video, and data communications. because it has great impacts on our nation and future society. Factors Considers to Adoption Wireless Technology Some of respondent believed that some area In general, any kind of new technology will such as Changlun and Sintok of Kedah must face the new challenges and treats where this is have to apply Wireless LAN (WLAN). WLAN the most common factor that considers by the was introduced to the market as a new respondents. According to 38 of 40 innovation and is used with several wireless respondents, some of challenges of using technologies. For example, WLAN utilizes a wireless technology are included: kind of a high-frequency radio technology and a low-frequency radio technology which is called  Having everyone online in a meeting spread spectrum. WLAN technology is also can be toxic to society. referred as infrared technology because it uses  Enormous pressure within related beams of infrared light to establish network bodies to provide Wi-Fi in all areas of links between LAN components. WLAN rural, semi-rural and hidden area. technology is growing rapidly as a new high- speed technology and is implemented in many

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