Online Business Capabilities and Online Business Performance in the Malaysian Fashion Industry

Objective - The digital economy is believed to be one of Malaysia’s largest sectors as online businesses are expected toexhibit an increase of 10% in the near future. This factor eventually prompted subsequent studies on online business models.This study aims to discover the types of online business capabilities that could enhance the firm competitiveness of onlinebusiness in the Malaysian fashion industry.Methodology/Technique – A questionnaire was developed and distributed by hand to a number of Malaysian onlinebusiness owners in the fashion industry. The data was analysed using SPSS version 26 and SmartPLS 3.0.Finding – The findings indicated that digital marketing capability and CRM capability were significantly correlated tofirm competitiveness, which in turn, also showed a significant and positive relationship with online businessperformance. Nevertheless, IT capability was an insignificant factor of firm competitiveness.Novelty – This study concluded the importance of CRM capability and digital marketing capability for online businessowners to enhance firm competitiveness. The results also implied the importance of firm competitiveness for onlinebusinesses to perform in Malaysian fashion industry.Type of Paper: Empirical