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Article
Publication date: 15 July 2020

Boon Cheong Chew, Xiaobai Shen and Jake Ansell

This study aims to investigate the entrance of Chinese-based Alipay’s mobile-payment (m-payment) technology into Malaysia. Malaysia allowed this entry of the first foreign…

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Abstract

Purpose

This study aims to investigate the entrance of Chinese-based Alipay’s mobile-payment (m-payment) technology into Malaysia. Malaysia allowed this entry of the first foreign m-payment company because it would allow Chinese tourists spending while they are visiting Malaysia. It will view this entrance from a Malaysian perspective.

Design/methodology/approach

The views of Malaysian players (Bank Negara Malaysia officers, three Malaysian banks’ officers, Alipay-Malaysia officers, airport section manager, convenience store manager and airport store sales executive) were sought via qualitative interview concerning Alipay’s entry into the Malaysian market. Respondents who had relevant knowledge and/or were involved in Alipay m-payment technology development in Malaysia were contacted, while there remainder were obtained by snowballing. Secondary data was collected from Bank Negara Malaysia’s policy, three Malaysian banks’ reports, the Alipay-Malaysia public statements and the Airport and Convenience Store reports. Triangulation using primary and secondary data was used to safeguard the validity and reliability of the outcomes.

Findings

The entry strategy used by Alipay was different from those reported in previous studies. The establishment of Alipay-Malaysia was the first element of the “mode of entry” gaining pioneer status in Malaysia. The next stage was gaining support from Bank Negara Malaysia-Malaysian Central Bank and three Malaysian banks (Maybank, Public Bank and CIMB) through collaborative ventures with Alipay-Malaysia Sdn. Bhd., leading to acceptance nationwide by local merchants. The key driver of acceptance being Chinese outbound tourists in Malaysia.

Research limitations/implications

This case study was conducted during the early implementation of Alipay in Malaysia from 2015 until April 2019. During this period, there were challenges due to the lack of primary data. These were overcome by the support from the respondents and the secondary data.

Practical implications

This study contributes to insights from a different entry strategy that used tourism as a leading force. This can give guidance to other m-payment service providers or other countries as m-payment technology recipient about “market entry strategy” and “modes of entry” following Alipay’s approach.

Originality/value

To date, no study has been conducted to investigate the nature of Alipay m-payment in Malaysia. This qualitative study has examined the new phenomenon regarding how Alipay entered the Malaysian market. Moreover, this study can also contribute new insights into the existing theory of “market entry strategy” in terms of Alipay’s tourist-based approach.

Details

Qualitative Research in Financial Markets, vol. 12 no. 4
Type: Research Article
ISSN: 1755-4179

Keywords

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Article
Publication date: 7 October 2013

Xiaobai Shen and Barry J. Naughton

This paper aims to provide an analytical account of the process by which China has developed its complex and infrastructural information and communication technology (ICT) systems…

398

Abstract

Purpose

This paper aims to provide an analytical account of the process by which China has developed its complex and infrastructural information and communication technology (ICT) systems over the last three decades, with the result that today it has become a key player in the global ICT sector. This paper discusses the role of the Chinese government in supporting and coordinating large-scale ICT system deployments and implementation, by-passing dilemmas that have beset more laissez-faire economies.

Design/methodology/approach

This paper is based on two case studies in China: public digital switching systems in the 1990s and 3G mobile standards recently. The former is a typical complex system and the latter exemplifies infrastructural technology. From the tradition of science and technology studies, it incorporates historical approach into a socio-technical discourse of the process and examines the operational practices of the Chinese government in different stages.

Findings

The paper demonstrates the pivotal role of government in the case of a latecomer country like China in developing and implementing complex and infrastructural ICT systems. While development of such socio-technical systems has presented challenges in many countries, the findings show the transition of socio-technical context in China has provided the best operational platform for the government to perform its roles.

Originality/value

Most research into innovation capabilities focuses on technological matters, while this paper also addresses the social context, institutional mechanisms and roles for coordinating different resources and players involved. In this way, it raises questions for conventional thinking in the West that market systems can perform the best in innovation.

Details

Journal of Science and Technology Policy in China, vol. 4 no. 3
Type: Research Article
ISSN: 1758-552X

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Article
Publication date: 29 November 2024

Boon Cheong Chew, Lay Hong Tan, Nurlisa Loke Abdullah and Syaiful Rizal Hamid

This study aims to explore the unique establishment of the early stage of the Alipay ecosystem in Malaysia by the Chinese-based Ant-Financial Services Group (Ant-Financial is the…

126

Abstract

Purpose

This study aims to explore the unique establishment of the early stage of the Alipay ecosystem in Malaysia by the Chinese-based Ant-Financial Services Group (Ant-Financial is the parent company of Alipay). Alipay, a Chinese m-payment technology, is used by Chinese tourists visiting Malaysia. With the diverse set of domestic–foreign stakeholders formed within this early stage of the Alipay ecosystem in Malaysia, this empirical study provides fresh insight that is different from the typical group of domestic stakeholders and crucial for a successful early stage of an m-payment ecosystem establishment. This early stage of the Alipay ecosystem in Malaysia set a promising precedent for the next m-payment ecosystem for Malaysians.

Design/methodology/approach

This exploratory case study examined the early stage of the Alipay ecosystem established in Malaysia. The authors collected primary data from eight respondents through qualitative, semi-structured interviews. These respondents were identified using a snowballing technique, including individuals with relevant knowledge. To ensure the accuracy and reliability of the information, the authors triangulated the primary data obtained with other primary and secondary data sources.

Findings

The results elucidate how Ant-Financial established the early stage of the Alipay ecosystem in Malaysia. A significant aspect of this establishment was the strong collaboration between Alipay-Malaysia Sdn. Bhd. (Alipay-Malaysia as a subsidiary in Malaysia) and three Malaysian banks. This collaboration, which was backed by Bank Negara Malaysia, allowed Alipay-Malaysia to obtain its regulatee status in 2017, making it lawful to provide escrow e-money services in Malaysia. Following this, Alipay-Malaysia gained support from local merchants under these banks’ networks to accept Alipay from Chinese tourists. This study revealed that the early stage of the Alipay ecosystem in Malaysia was characterised by a diverse set of domestic-foreign stakeholders and functioned effectively from the outset. Consequently, in 2018, Malaysia was ranked among the top ten countries in global Chinese tourist spending.

Research limitations/implications

This study of Alipay in Malaysia from 2016 to 2022 was challenging. Initially, the authors faced the obstacle of information scarcity as the respondents kept the information confidential to reduce rivalry. In the middle stage of our study, the authors encountered information inconsistency due to numerous erroneous personal assumptions and predictions. At that time, limited official information about Alipay’s establishment in Malaysia was available. It took a long time to gather primary and secondary data. The authors cross-examined these data by comparing different sources and triangulated them by validating the findings with other data sources. When Alipay was widely accepted in Malaysia and attained the top 10 position in global Chinese tourist spending, the COVID-19 outbreak froze the global tourism economy and reduced Alipay transactions. Later, the Malaysian Government enforced a nationwide movement control order that halted Alipay operations.

Practical implications

This study documented the early stages of the Alipay ecosystem establishment in Malaysia and made two contributions. Firstly, our research contributes to understanding the strategic approaches of an m-payment ecosystem establishment from a developing country-drawing from the Malaysian experience. Secondly, our study offers practical lessons for other m-payment service providers aiming for global expansion. The lessons learned in developing an early stage m-payment ecosystem in Malaysia, the strategies, a diverse set of domestic-foreign stakeholders’ roles and their collaboration within the Alipay ecosystem established in Malaysia are worth noting.

Originality/value

Up to this point, no exploratory qualitative study has been conducted on the early stage of an m-payment ecosystem (dominated by a foreign m-payment technology) in a developing country. By addressing the research question of “How has Ant-Financial established the early stage of the Alipay ecosystem in Malaysia?” this study provides a unique perspective on the establishment of an early stage Alipay ecosystem, underscores the strategies of an early stage Alipay ecosystem establishment and understand a diverse set of domestic-foreign stakeholders’ roles and their collaboration within such ecosystem that contributed to the existing theory of m-payment ecosystem.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

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