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The environment is getting more complex, business systems need to be more creative in order to identify newopportunities for sustained high performance. Organizations that run out to observe the tide of change will be left behindin many matters.This situation and demands force each organization to change, to abridge the gap in environmentalchanges that take place. At the close of the 20th century, E-commerce becomes more significant. In the 21st century, amarket system that employs an electronic infrastructure has been supporting the world marketplace. Common Knowledgeof information technology has no limits and anyone accessing the internet can make it (Laudon, 2009). Nevertheless,there is consensus that, the full potential of values brought about by E-commerce in Malaysia are unable to recognize. It has been identified that lack of success stories by brick and mortar companies is a reason why traditional businesses are declining to initiate in E-commerce investments. Ainin and Noor Ismawati (2003) provide empiricalsupport where 79 percent of the respondents cited “not many success stories of E-commerce” as the main barrier to Ecommerceadoption,followedby“nothavingknowledgeinE-commerce”(72.6%),“lowinternetaccess amongbuyers”(72.2%),and“lackof knowledgeonthe potentialofE-commerce”(69.6%)ina studyon E-commercestimuliandpracticesamongthe smallandmediumenterprises(SMEs)inMalaysia.AininandNoor Ismawati(2003)provideempiricalevidence,in which79percentof therespondentscited"notmanysuccessstoriesof E-commerce"asa majorobstacletothe adoptionof Electroniccommerce, followedby"do not knowElectronic Commerce"(72.6 %),"Internetaccessamongbuyersare low"(72.2%)and"lack ofknowledgeaboutthepotentialofE-commerce"(69.6%)inastudy ofstimuliandpracticesof E-commerceamongsmallandmedium-sizedenterprises(SMEs)inMalaysia.The relationship between the effect of E-commerce adoption in the hotel performance in Malaysia are not so clear,although there are other studies in the west that shows the relationship between the E-commerce adoption with hotelperformance exist by Rezvani (2011), Tow (2004), Amit and Zott (2001), and Uchitelle (2000) but is more focused on the manufacturing industry. A research in the tourism industry in general and especially the hotel sector, which looking for Ecommerceadoptionimpactonhotelperformancein Malaysiaislimited.Whilethetourismindustryisthe largestindustrythatusesinformation(IntanSalwani,etal.,2009;Norzaidietal.,2007;Chow,2000).Changes in the organization because of influence from the external environment cannot be controlled and cannot
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