The Role of E-Commerce Adoption in Enhancing Regulatory Compliance in Information Systems of Foreign Investment Management in Malaysia - A Moderating Effect of Innovation Management

Over the years, the rise of e-commerce has brought about significant changes in the way businesses operate globally which also includes how foreign investment is managed. As more companies move on-line and engage in move-border transactions, foreign investment management has turned out to be greater complicated and requires a distinctive set of techniques. This study aims to examine the mediating role of IT capabilities and information security measures, as well as the moderating role of innovation management in this relationship. This study uses a cross-sectional research design. Data were collected from 230 Malaysian foreign investment management firms using a structured questionnaire. The measurement scales used were validated and adopted from previous studies. SPSS was used to analyze the data and test the hypothesized relationships. The findings of the study showed that e-commerce adoption has a significant and positive impact on regulatory compliance. Furthermore, this relationship is significantly mediated by IT capabilities and information security measures and moderated by innovation management. This study provides valuable insights into the effects of e-commerce adoption on regulatory compliance in the context of foreign investment management in Malaysia. The findings underscore the importance of developing strong IT capabilities and implementing strong information security measures to enhance regulatory compliance. Additionally, the study emphasizes the need for innovative management practices to effectively leverage e-commerce adoption for regulatory compliance.