Digital Entrepreneurship and Innovation: The Case of Kongsi

Digital Entrepreneurship and Innovation: The Case of Kongsi

Mohd Saniazle Kasim (Universiti Tun Abdul Razak, Malaysia) and Mohar Yusof (Universiti Tun Abdul Razak, Malaysia)
DOI: 10.4018/978-1-7998-9035-5.ch024
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Abstract

This chapter is based on a case study that highlights the digital entrepreneurship and innovation of an entrepreneurial venture and team aspiring to address cash flow management issues and pains faced by the micro, small, and medium-sized enterprises (MSMEs) in Malaysia. The entrepreneurial team pioneered the revolutionization of the barter trade concept by developing a digital solution and platform branded as Kongsi (initially named Qu Exchange). Kongsi is a solution using digital trade points which act as a medium of exchange in replace of cash. This solution can solve cash flow problems faced by MSMEs with the creation of a non-cash alternative financing platform, combining and integrating the concept of barter trade and a point-based system. In this case study, the authors examined two critical success factors for digital entrepreneurship and innovation. This case study exemplifies a venture and entrepreneurial team capable of assembling strategic resources to create and sustain competitive advantages to survive and grow in a highly competitive FinTech environment.
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Fintech Industry In Malaysia

The Malaysian market and economy had been receptive to the fintech industry since 2013. However, substantial awareness and growth began only in 2016 when many local companies started utilizing fintech as a component of their business. Through the information from SME Corporation Malaysia (2015), Malaysia is the first ASEAN country to have a regulatory framework of equity crowdfunding with the aim of early-stage financing for start-up companies and existing entrepreneurs in 2015. As a result of the program, it has to some extent influenced the expansion and exposure of companies to the use of fintech in their business.

The sector was supported by the Financial Technology Enabler Group (FTEG) set up by Bank Negara Malaysia (BNM)2 with the aim of helping to improve the aspects of quality, accessibility, and efficiency of financial services in Malaysia. It also played a role and responsibility in overseeing the application of technology innovations to the financial services industry in Malaysia.

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