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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.

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.

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.

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.

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.

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.

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.

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.

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.

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.