BM070-3-2-BRSM

Business Research Methods

INDIVIDUAL ASSIGNMENT

Research Proposal

The Impact of The Rapid Growth of Southeast Asia’s Digital

Market and Grab-Uber Deal on Go-Jek’s Expansion Plan in
Southeast Asia Region

PREPARED BY : Rozzaqia Dwi Ananda Putra

TP NUMBER : TP042947

HAND-IN DATE : 1st June 2018

LECTURER : DR. Jugindar Singh A/L Kartar Singh

DR. Anusuiya A/P Subramaniam
Table of Contents

CHAPTER ONE ........................................................................................................................... 1

1.1. Introduction ...................................................................................................................... 1

1.2. Background of the Study .................................................................................................. 1

1.3. Problem Statement ........................................................................................................... 2

1.4. Research Question ............................................................................................................ 4

1.5. Research Objective ........................................................................................................... 5

1.5.1. General Objective ..................................................................................................... 5

1.5.2. Specific Objectives ................................................................................................... 5

1.6. Research Hypothesis ........................................................................................................ 5

1.7. Significance of the Study ................................................................................................. 5

1.7.1. Theoretical Perspective ............................................................................................. 6

1.7.2. Management Perspective .......................................................................................... 6

1.7.3. Academic Perspective ............................................................................................... 6

1.8. Scope of Study ................................................................................................................. 6

1.9. Limitation of Study .......................................................................................................... 7

CHAPTER 2 .................................................................................................................................. 8

2.1. Introduction ...................................................................................................................... 8

2.2. The Rapid Growth of Southeast Asia’s Digital Market ................................................... 8

2.3. Grab-Uber Deal .............................................................................................................. 10

 2.4. Go-Jek’s Expansion Plan in Southeast Asia .................................................................. 12

2.5. Summary ........................................................................................................................ 13

CHAPTER 3 ................................................................................................................................ 14

3.1. Introduction .................................................................................................................... 14

3.2. Research Philosophy ...................................................................................................... 15

3.3. Research Approach ........................................................................................................ 15

3.4. Research Strategies ........................................................................................................ 16

3.5. Research Choice ............................................................................................................. 17

3.6. Time Horizons ................................................................................................................ 17

3.7. Types of Data ................................................................................................................. 17

3.8. Instrumentation............................................................................................................... 18

3.9. Sources of Data Collection ............................................................................................. 19

3.10. Sampling ..................................................................................................................... 19

3.11. Data Processing .......................................................................................................... 21

3.12. Data Analysis .............................................................................................................. 21

3.13. Ethical Considerations ................................................................................................ 22

3.14. Research Framework .................................................................................................. 23

References .................................................................................................................................... 24

Appendix ...................................................................................................................................... 28
 CHAPTER ONE
INTRODUCTION

1.1. Introduction

This chapter explains the background of the study, statement of the problem, research

questions, objectives of the study, significance of the study, definitions used in the study,

limitations of the study, and the operational definitions of the thesis.

1.2. Background of the Study

Go-Jek is an Indonesia-based technological ride-hailing startup established in 2010 with the

Co-Founder and current CEO Nadiem Makarim. It is an on-demand mobile platform providing a

huge scope of services including transportation, food delivery, logistics, mobile payment, and

many other on-demand services (Go-Jek, 2018). With the slogan of “An Ojek for Every Needs”,

Go-Jek is being the first unicorn as well as the hottest start-up in Indonesia (Cosseboom, 2015).

The company is operated under ride-hailing industry in digital market, and recently, only operated

in Indonesia. The biggest competitors of this company are Grab and Uber, where Grab just

announced that Grab has acquired Uber for Southeast Asia area on March 2018 as they called it as

the ‘Grab-Uber Deal’ (Grab, 2018). This makes Grab to be the clear market leader in ride-hailing

across Southeast Asia after it elbowed Uber out of the picture. On the other hand, on 27th May

2018, Go-Jek has just officially announced its plan for expansion beyond its home market to move

into Singapore, Thailand, Vietnam, and the Philippines by the middle of this year, spending

US$500 million (Ellis, 2018). At this moment, Grab-Uber deal is blocking the plan of Go-Jek as

they just strengthen the competition between these three companies by merging to be one player

directly dealing with Go-Jek. It is now about winning the market while currently, Southeast Asia’s

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digital market is growing rapidly and projected to grow more than six-fold to US$200 billion by

2025 (Tegos, 2016).

This has lead the researcher to investigate the impact of these factors on Go-Jek’s expansion

plan for Southeast Asia region in 2018. The research will hopefully help the strategic planning and

implementation for the company’s decision-makers. However, as a part of ASEAN community,

the researcher is intended to support the vision of ASEAN Economic Community (AEC) Blueprint

2025. The characteristics of this vision are to have: a highly integrated and cohesive economy; a

competitive, innovative, and dynamic ASEAN; enhanced connectivity and sectoral cooperation; a

resilient, inclusive, people-oriented, and people-centred ASEAN; and a global ASEAN (ASEAN,

2018). Hence, strengthening the digital market competition between these companies is considered

as one step for reaching the goal of AEC Blueprint 2025, since they are all originated from

Southeast Asia countries. In addition, this study is well-motivated by the researcher due to the

preparation for joining the respective company in future.

1.3. Problem Statement

The main issue of this study is that in planning Go-Jek’s expansion for Southeast Asia

region, there is one factor that pushing it up which is the rapid growth of SEA’s digital market,

and there is also one factor that pushing the plan down which has come from Go-Jek’s biggest

competitors, the Grab-Uber deal. Grab is recently being the leader market in ride-hailing industry

across Southeast Asia where they have operated in 8 countries including Singapore, Indonesia,

Thailand, Philippines, Malaysia, Vietnam, Myanmar, and Cambodia (Pham, 2018). This has been

a major challenge for Go-Jek to expand its business across Southeast Asia region. On the other

hand, there is an opportunity for the company to plan its expansion by the support from Southeast

Asia’s digital market that has been growing rapidly since the region is now being the world’s third

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largest region for internet users, and internet is having a bigger impact on the region than originally

thought (Russell, 2017). The original report forecast Southeast Asia’s internet economy hitting

US$200 billion by 2025 (Google & Temasek, 2015).

Figure 1: SEA internet e-Conomy market size

(source: (Russell, 2017))

As seen in the figure above that e-commerce and ride-hailing are the elements of digital

market with the highest growth. However, online ride-hailing industry is expected to grow to 5x

by 2025, reaching US$13 billion per year and making up 15% of the total online travel market

(Google & Temasek, 2015).

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 Figure 2: Online Rides Market Size
(source: (Google & Temasek, 2015))

This is one of the opportunities for Go-Jek to boost up its business by expanding it towards

all Southeast Asia region. However, the impacts of this rapid growth of Southeast Asia’s digital

market and Grab-Uber deal have not been empirically investigated before, since the past research

has just been reported over a time frame of two years, and the merge between Grab and Uber was

just occurred in the past three months of this year. It is still unclear whether the rapid growth of

SEA’s digital market and Grab-Uber deal have an influence on Go-Jek’s expansion plan in

Southeast Asia region. Therefore, it is worth doing this study as it will show whether these factors

have an influence on Go-Jek’s expansion plan for Southeast Asia region.

1.4. Research Question

1. Is there a relationship between the rapid growth of Southeast Asia’s digital market and

Go-Jek’s expansion plan?

2. Is there a relationship between Grab-Uber deal and Go-Jek’s expansion plan?

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1.5. Research Objective

1.5.1. General Objective

The main objective of this study is to investigate the impact of the rapid growth of

Southeast Asia’s digital market and Grab-Uber deal on Go-Jek’s expansion plan in

Southeast Asia region

1.5.2. Specific Objectives

1. To determine whether the rapid growth of Southeast Asia’s digital market

impacts Go-Jek’s expansion plan

2. To determine whether the Grab-Uber deal affects Go-Jek’s expansion plan

1.6. Research Hypothesis

H1: There is a relationship between the rapid growth of Southeast Asia’s digital market and

Go-Jek’s expansion plan

H2: There is a relationship between Grab-Uber deal and Go-Jek’s expansion plan

1.7. Significance of the Study

The purpose of this study is to investigate the impact of the rapid growth of Southeast Asia’s

digital market and Grab-Uber deal on Go-Jek’s expansion plan in Southeast Asia region. Hence,

this study aimed to create an addition to the research on ride-hailing industry based on Go-Jek’s

expansion plan. This study will also try to find the best possible explanation regarding the impacts

that affect Go-Jek’s expansion plan and help leading the company to have an effective and efficient

decisions to overcome future challenges.

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 1.7.1. Theoretical Perspective

In terms of theoretical perspective, this research can add to the contribution on the

knowledge about ride-hailing industry especially in Southeast Asia and help other

individual to prove other theory for future findings, generating good ideas, as well as

providing better understanding in digital market era.

1.7.2. Management Perspective

In terms of management perspective, this research can help the management of Go-

Jek to understand their environmental opportunities and threats, and hopefully they are able

to use this research as a guideline to make an effective and efficient decision regarding their

expansion plan in Southeast Asia region. In fact, this research is not restricted only for Go-

Jek, but also other companies or even startups that are in the related industry to have a better

understanding in creating strategic planning in future.

1.7.3. Academic Perspective

In terms of academic perspective, students or other researchers can be benefited

from this research as they are able to use this research as a reference or guideline for their

final year projects or any future research.

1.8. Scope of Study

The study area of this research will be in Southeast Asia region including Indonesia,

Malaysia, Thailand, Vietnam, Cambodia, Singapore, Myanmar, and Philippines to be more

precise. This research will only focus on the Indonesia-based Go-Jek. This is due to the rapid

development of Go-Jek since its establishment in 2010. Therefore, the targeted number of

respondent is limited to the management of Go-Jek or Go-Jek’s decision-makers, and the

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researcher will attempt to find whether these factors played a role in Go-Jek’s expansion plan. This

research will use 2 variables to determine the impact on the expansion plan of Go-Jek in Southeast

Asia region. The first variable is the rapid growth of Southeast Asia’s digital market, and the

second variable is the Grab-Uber deal. However, this research has been restricted in only these

two variables which does not consider the whole factors impacting the Go-Jek’s expansion plan.

1.9. Limitation of Study

There are several limitations to this study. Firstly, the sample size for this study is limited

by the number and hence, the findings from this research should not be generalized as whole as

this study will only be made up of the Go-Jek’s management or decision-makers. Next, the

availability of data of this study is limited due to the new existence of the merge between Grab

and Uber in Southeast Asia as well as there are only few researches regarding the rapid growth of

SEA’s digital market, but they are all reliable.

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 CHAPTER 2
LITERATURE REVIEW

2.1. Introduction

In this chapter, some relevant literatures related to this topic will be presented. The main

purpose of this chapter is to critically review the published work in the area of study which the

researcher is undertaking. The chapter will be divided into several subtopics, namely (1) the rapid

growth of Southeast Asia’s digital market, (2) Grab-Uber deal, and (3) Go-Jek’s expansion plan.

In doing so, the learner will have to look at the concepts, theoretical development and empirical

and non-empirical studies done to explain the phenomenon of interest. The result of the review

would indicate the current state of knowledge in the area in terms of its breadth and depth of

research, the strengths and weaknesses of previous research and the knowledge gap which needs

further explanation and study.

2.2. The Rapid Growth of Southeast Asia’s Digital Market

Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei Darussalam, Vietnam, Lao

PDR, Myanmar, and Cambodia are the ten Member States of The Association of Southeast Asian

Nations, or ASEAN which was established on 8th August 1967 in Bangkok, Thailand (ASEAN,

2018). Currently, the total population of ASEAN is approximately 652.19 million inhabitants in

2018 (Statista, 2018). With more than 370 million internet users in January 2018, the region is

now being the world’s third largest region for internet users with more people online than the entire

United States population (ASEAN Up, 2018). China and India typically dominate the conversation

when looking at emerging economies in Asia, but Southeast Asia is rapidly being acknowledged

as a market where the internet is changing daily behaviors and creating new opportunities. A lack

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of data has traditionally made it difficult to pinpoint that potential but Google and Singaporean

sovereign fund Temasek has released an update to their highly referenced 2015 in ‘e-Conomy

SEA’ report in Singapore.

The original report forecast Southeast Asia’s internet economy hitting US$200 billion by

2025 (Russell, 2016). However, it was estimated that it will top that number, reaching US$50

billion in 2017 alone (Russell, 2017). The report did not include areas such as education,

entertainment, financial services, and healthcare as there was not enough data available (Ellis,

2018). Furthermore, Southeast Asia region is expected to be the fastest growing internet market in

the world with the total amount of 480 million users by 2020 (refer to Figure 3), and the internet

economy is also expected to reach US$200 million by 2025 which has to be increased up to 6.5x

over a time frame of 10 years (refer to Figure 4) (Google & Temasek, 2015).

Figure 3: Prediction on Internet Market Growth in Southeast Asia

(source: (Google & Temasek, 2015))

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 Figure 4: Expected Ride-Hailing Market Growth
(source: (Google & Temasek, 2015))

On the other research done by Frost & Sullivan (2016), they stated that Southeast Asia is

poised to become one of the world’s fastest growing regions for e-commerce revenues, exceeding

US$25 billion by 2020. The research examines market trends and opportunities in six key

Southeast Asian markets such as Indonesia, Malaysia, the Philippines, Singapore, Thailand and

Vietnam with forecasts to 2020. However, there are a lot of opportunities that can be achieved

from this situation, especially for those with renewed interest in digital market or who are

interested in internet economy, since younger generation live in this digital era and there is a future

prospect of being involved in the digital market of Southeast Asia and ASEAN community.

2.3. Grab-Uber Deal

The ASEAN ride-hailing market is still immature and has complex national and regional

characteristics, but it is set to grow in revenue to US$13 billion by 2025 from just US$2.5 billion

in 2015 (Google & Temasek, 2015). On the previous four months, there were three biggest players

in technological ride-hailing industry for Southeast Asia region which are the Singapore-based

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Grab, America-Based Uber, and Indonesia-based Go-Jek, but on March 26th, 2018, Grab has

officially announced that the company has acquired Uber’s Southeast Asia operations (Grab,

2018). Grab integrates Uber’s ridesharing and food delivery business in the region into Grab’s

existing multi-modal transportation and fintech platform.

From this situation, Grab will extend its leadership as the most cost efficient Southeast

Asian platform, as it takes over Uber’s operations and assets in Cambodia, Indonesia, Malaysia,

Myanmar, Philippines, and Singapore. Meanwhile, Uber will own a 27.5% stake in Grab with the

Uber CEO Dara Khosrowshahi joining the Grab’s board (Watts, 2018). This is just the latest

international retreat by Uber, which sold off its operations in China in 2016, and in Russia in 2017

(Pham, 2018). The withdrawals highlight the limits of the company’s aggressive efforts to

dominate ride-hailing in dozens of countries around the world. One of the factors influencing this

retreat was the potential dangers from many battles of many competitors, as the CEO Dara

Khosrowshahi said in e-mail to Uber staff about the Grab deal, “One of the potential dangers of

our global strategy is that we take on too many battles across too many fronts and with too many

competitors”.

On the other hand, with Uber out of the way in Southeast Asia, Go-Jek only has to worry

about Singapore-based Grab, the competitor that brands itself as “Southeast Asia’s Leading Ride-

Hailing Platform”. Moreover, Go-Jek has officially stated that the company will miss the presence

of Uber in Southeast Asia through its Twitter on March 28th, 2018.

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 Figure 5: Farewell Expression from Go-Jek to Uber via Twitter
(source: https://twitter.com/gojektech)

2.4. Go-Jek’s Expansion Plan in Southeast Asia

From 20 bikes to US$5 billion, Go-Jek has cemented its leadership in Indonesia (Loh,

2018). The first unicorn of Indonesian origin to be classified as a transport system, Go-Jek had

very humble beginnings, within the four walls of a call center. Go-Jek, a name that is a play on the

word ojek with the meaning of motorcycle taxi, now has a network of more than 400,000 drivers

in 50 cities in Indonesia. Once Grab became the clear market leader in ride-hailing across Southeast

Asia, after months of speculation, Indonesian rival Go-Jek has officially announced its plan for

expansion beyond its home market (Ellis, 2018). The Jakarta-based company is spending US$500

million to move into Singapore, Thailand, Vietnam, and the Philippines, where Grab is currently

the dominant player for all these countries. It is supported by the first investment of Google on

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ride-hailing industry investing about US$100 million to expand its business (Daga, 2018). Go-Jek

also plans to expand to three other Southeast Asian countries by the middle of this year which are

Malaysia, Myanmar, and Lao PDR (The Star Online, 2018).

The Indonesian ride-hailing firm is aiming to fill up the shoes left empty by Uber’s

departure from Southeast Asia while also taking on current Southeast Asia ride-hailing king Grab

in a race for market share (Low, 2018). In the interview session conducted by the Reuters team,

the Go-Jek CEO stated that the company is confident that it has more than enough support to take

one of the most amazing growth stories in the world from being an Indonesian phenomenon to a

global one (Davies, 2018). Mr. Makarim described that Uber deal as a great opportunity because

fewer players means a smoother path to continued and deepened market leadership for Go-Jek in

Indonesia.

2.5. Summary

In this chapter, literature review of the Go-Jek’s expansion plan in Southeast Asia, the rapid

growth of Southeast Asia’s digital market as well as the Grab-Uber deal will be further discussed.

This research attempts to determine whether there is a relationship between the rapid growth of

Southeast Asia’s digital market, Grab-Uber deal, and Go-Jek’s expansion plan.

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 CHAPTER 3
METHODOLOGY

3.1. Introduction

Figure 6: The Research Onion

(source: (Saunders, et al., 2016))

The figure above was developed by Saunders et al. (2016) that illustrate the stages of

research methodology that must be covered when conducting a research. Research onion is a way

of representing the issues underlying in the choice of data collection methods or methods. It is

categorized into 3 different layers. The first 2 layers consists of research philosophies and research

approaches. The next 3 layers cover research strategies, research choices and time horizons. The

last layer of the onion will be focusing on data collection and data analysis.

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3.2. Research Philosophy

According to Saunders et al. (2016), there are three main methods of thinking about research

philosophy: epistemology, ontology and axiology. However, this research will be based on

positivism. Positivism is related with the idea of objectivism. According to Saunders et al (2016),

positivism consist of phenomena that a research can observe will lead to the production of credible

data. In order to generate a research strategy to collect data, researchers are likely to use existing

theory that is available to develop a hypothesis. Once the hypothesis is formed, it will be tested

and confirmed whether it's in part, whole or rejected; it will lead to further development of theory

which will then be tested in further research.

Saunders et al. (2016) also stated another important component of approaching through

positivism is that research is taken in a value-free way for as far as possible. It means that the

researcher should be independent and neither affects or is affected while conducting the research

and most importantly, it should be judged only by logic.

3.3. Research Approach

According to Saunders et. al. (2016), research approach is mainly based on the research

philosophy. Deductive approach is usually used for research that is based on positivism whereas

inductive approach is commonly used in interpretivism. Deductive approach will be used in this

research due to the nature of this research which is based on positivism.

Deductive approach is the development of hypothesis by referring to past theory and then

formulates the research approach to test it. There are 5 steps which deductive approach will

progress (Robson, 2002). The first step is deducing hypothesis from relevant theory. The second

step is formulating the hypothesis in operational terms and propose a relationship between two

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variables. The third step is testing the formulated hypothesis with suitable application of model.

The fourth step is examining the outcome of the test which will either confirm the theory or

indicate that there is a need for modification. The last step is to modify the theory that is not

confirmed or needed modification.

According to Saunders et al. (2016), deductive approach holds a few important

characteristics. The first important characteristic is the search to explain causal relationship

between variables. In this research, two hypotheses are formed based on the relationships between

the rapid growth of Southeast Asia’s digital market, Grab-Uber deal, and Go-Jek’s expansion plan

in Southeast Asia region. The second characteristics is the collection of quantitative data where it

is used to test formulated hypothesis. The third characteristic is the need to control to allow the

testing of hypothesis. Next, the fourth characteristic is that concepts need to be operationalised in

a way that allow facts to be measured quantitatively. For instance, this research consists of three

concepts which are the rapid growth of Southeast Asia’s digital market, Grab-Uber deal, and Go-

Jek’s expansion plan in Southeast Asia region. These three concepts are operationalised so that it

makes it easier to measure or collect the data. The last important characteristic is generalisation.

A sufficient numerical size is needed in order to be able to generalise experimentally about Go-

Jek’s expansion plan in Southeast Asia region.

3.4. Research Strategies

This research strategy will be based on experiment. This is due to analytical assessment on

Go-Jek’s expansion plan in Southeast Asia region. Experiment is a form of research that owes

much to the sciences, whether in natural science, psychological science, or social science research

(Saunders, et al., 2016). The purpose of an experiment is to study the probability of a change in an

independent variable causing a change in another which is the dependent variable. This strategy

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uses predictions because the researcher anticipates whether or not a relationship will exist between

the variables.

3.5. Research Choice

According to Saunders et al. (2016), there are three choices for data collection and data

analysis procedures which are quantitative, qualitative, or mixed between quantitative and

qualitative. Quantitative is used mostly on data collection technique and data analysis procedures

that uses numerical data while qualitative is used mostly on non-numerical data. Example of

quantitative are questionnaire, graphs or statistic while qualitative consists of pictures or video

clips. This research will be using quantitative as a research choice as data collection techniques

and data analysis procedures will be in numerical format.

3.6. Time Horizons

Since experiment strategy is used, this research will then be focusing on cross-sectional

studies. This is because cross-sectional studies often employ the experiment strategy. According

to Saunders et al. (2016), cross-sectional study is the study of a particular phenomenon at a

particular time. This cross-sectional study is chosen due to the limited amount of time available to

complete this research.

3.7. Types of Data

This research will be using primary data as source of data collection. Uma Sekaran (2003)

referred primary data as information obtained by the researcher on the variables of interest for the

specific purpose of study. The methods used to collect primary data can be through experiment,

surveys, questionnaire, interview or observation. Primary data is selected as it is more reliable and

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contain unbiased information. In addition, it allows greater control on how the data is collected

(Sekaran, 2003).

3.8. Instrumentation

Since this research will be using primary data, hence questionnaire would be a good option

for conducting this research. According to Saunders et al. (2016), questionnaire is usually used for

descriptive or explanatory research and it enable researcher to identify and explain the variability

in different phenomena. The questionnaire can be divided into two parts which is self-administered

and interviewer-administered. However, self-administered questionnaires are used due to its

convenience, low cost, and reduced biasness. The questionnaire will be distributed to respondents

to answer by delivering it by hand and colleting it later, as well as through telephone, and interview

questionnaire.

There are two parts in the questionnaire. The first part (Section A) consists of personal

variables such as respondent’s name, gender, position, working experience, and education level.

The second part (Section B) includes latent variables that are important in this research and Likert

scale is used.

According to Saunders et al. (2016), adapting or adopting questionnaire from past research

is more reliable. Thus, this research will be using adaption method so that accurate and reliable

result can be produced. The sample of the questionnaire was adapted from a research done by Liao,

Welsch and Pistrui (2009) with title of “Entrepreneurial Expansion Plans: An Empirical

Investigation of Infrastructure Predictors” (Liao, et al., 2009).

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3.9. Sources of Data Collection

There are many ways of collecting the data once the questionnaire is designed. The five main

ways of collecting are Internet, postal, delivery and collection, telephone and interview. In this

research, four methods will be used which are Internet, delivery and collection, postal and

interview. A total of 100 questionnaires will be used of which 50 questionnaires will be sent via

e-mail and approximately 30 out of 50 questionnaires will be expected to be answered. Then, the

remaining 50 questionnaires will be delivered directly to the responses and collect once done.

Telephone and interview questionnaires will also be used. However, the only targeted respondents

for this research is the Go-Jek’s management staff, Go-Jek’s decision makers, or any related

department that take a part in planning the expansion plan. This is due to the specific arguments

needed from them.

3.10. Sampling

This research will be using non-probability sampling with the only targeted respondents of

the management of Go-Jek, Go-Jek’s decision-makers, or any related department influencing the

company’s expansion plan. According to Saunders et al. (2016), non-probability sampling

provides a wide range of alternatives techniques to select sample, the majority of which include

an element of subjective judgement. He also added that non-probability sampling may be the most

practical especially in pilot testing a questionnaire even though non-probability sampling does not

allow the degree of the issues to be clarified. Raosoft software, which is an online calculator was

used to determine the recommendation sample size. Figure below shows the sample size which

was computed using Raosoft;

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 Figure 5: Raosoft's Recommendation Sample Size
(source: http://www.raosoft.com/samplesize.html)

Referring to the table above, the recommended sample size for a population size of 20000

is 377 with confident level of 95%. However, due to time constraint, the sample size for this

research will be only 100 and according to Raosoft, the margin error for a sample size of 100

would be 9.78%.

This research will be using three non-probability sampling technique which are

convenience sampling, judgmental sampling and snowballing sampling. Convenience sampling

was used because they are widely used and easily available to obtain data for the sample. However,

according to Saunders et al. (2016), using convenience sampling may lead to biasness that are

beyond the researcher's control.

The next sampling technique is the judgmental sampling. It is basically a sampling

technique in which an experienced individual selects the sample based on personal judgment about

some appropriate characteristics of the sample member (Saunders, et al., 2016). However, this

technique is time consuming and bias selection of sample may also occur.

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 The last sampling technique used is snowballing sampling. According to Saunders et al.

(2016), this type of technique is used when it is very difficult to identify the members of desired

population. In this research, it is very difficult to identify the right population needed which are

from organisational structure of Go-Jek. Hence, snowballing sampling was used to counter this

problem.

3.11. Data Processing

After the data collection was done, the data has to be processed, analysed and to test research

hypothesis. The software which will be used is SPSS, which is a software for statistical analysis.

But before that, the data collected from questionnaires will be edited in order to check for

inaccuracy and omission. Then, coding was done based on the results of questionnaire and the

coded data will be transferred to Microsoft Excel. After that, it will be imported to SPSS software

as they are more reliable and credible.

3.12. Data Analysis

According to Sekaran (2003), there are 3 objectives in data analysis which are getting a feel

for the data, testing the goodness of data, and testing the hypotheses developed for the research.

The feel of data will give the researcher an initial idea on how good the scales are, how well the

coding and how the data was entered. The feel of data can be acquired by checking the central

tendency and the dispersion such as mean, range, standard deviation, and variance. Sekaran (2003)

also stressed that researcher must also obtain the frequency distribution for the demographic

variables and an inter-correlation matrix of the variables, regardless of the hypotheses are directly

related to these analyses. This is because acquiring these statistics will give a "feel for the data".

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 The second objective is testing goodness of data where reliability and validity of the

measures can be tested. The reliability of a measure can be established by testing consistency and

stability with the use of Cronbach's alpha. Cronbach’s alpha is a reliability coefficient that indicates

how well the items in a set are positively correlated to one another. Meanwhile, factorial validity

can be created by submitting the data for factor analysis and the result of this analysis will verify

if the theorized dimensions emerge or not.

The hypothesis is ready to be tested once the data is ready is for analysis, for example,

goodness of data is established. Pearson's Correlation coefficient was used for inferential statistical

test to examine the linear relationship between two interval or ratio variables.

3.13. Ethical Considerations

According to Saunders et al. (2016), ethics refer to the standards of behaviour that guide

researcher's conduct in relation to the rights of those who become the subject of researcher's work.

Ethical concerns will appear as the research is being designed and planned or when the researcher

try to seek access to organisation or to individuals to collect data. Therefore, it is important to

develop trust with the respondents, especially when the only subject comes from one organization

which is Go-Jek. In order to do this, privacy of respondents used in this research will be kept safe

and confidential. The research objective, design, process and strategies used will be explained to

respondents in details without influencing the respondents. Before collecting the data from

respondents for this research, consent will be taken and permission to use their data will also be

asked to make sure the privacy of respondents' data is used appropriately.

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3.14. Research Framework

The Rapid Growth of

Southeast Asia’s
Digital Market
Go-Jek’s
Expansion
Plan

Grab-Uber Deal

The independent variables are corruption, the rapid growth of Southeast Asia’s digital

market and Grab-Uber deal while the dependent variable is Go-Jek’s expansion plan. The research

framework shows that the two IVs impact the expansion plan of Go-Jek.

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References
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Available at: https://aseanup.com/southeast-asia-digital-social-mobile/

[Accessed 11 May 2018].

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Available at: http://asean.org/asean/about-asean/

[Accessed 10 May 2018].

ASEAN, 2018. ASEAN Economic Community. [Online]

Available at: http://asean.org/asean-economic-community/

[Accessed 5 May 2018].

Bangkok Post, 2018. Indonesia's Go-Jek riding into Thailand , Bangkok: Bangkok Post.

Cosseboom, L., 2015. TechInAsia: This guy turned Go-Jek from a zombie into Indonesia’s

hottest startup. [Online]

Available at: https://www.techinasia.com/indonesia-go-jek-nadiem-makarim-profile

[Accessed 6 May 2018].

Daga, A., 2018. Google makes first ride-hailing investment in Asia. [Online]

Available at: https://www.independent.co.uk/news/business/news/google-go-jek-ride-hailing-

app-alphabet-asia-indonesia-a8182956.html

[Accessed 8 May 2018].

Davies, E., 2018. Exclusive: Indonesia's Go-Jek poised for imminent Southeast Asia expansion.

[Online]

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Available at: https://www.reuters.com/article/us-go-jek-indonesia/indonesias-go-jek-to-

announce-first-southeast-asia-expansion-in-weeks-internal-memo-idUSKBN1H31KV

[Accessed 10 May 2018].

Ellis, J., 2018. TechInAsia: Go-Jek spending $500m for regional expansion. [Online]

Available at: https://www.techinasia.com/gojek-500m-plan

[Accessed 25 May 2018].

Frost & Sullivan, 2016. Southeast Asia's E-Commerce market to surpass US$25 billion by 2020

despite market challenges, finds Frost & Sullivan, New York: PR Newswire Association LLC.

Go-Jek, 2018. About Go-Jek: About Us. [Online]

Available at: https://www.go-jek.com/about/

[Accessed 5 May 2018].

Google & Temasek, 2015. e-conomy SEA: Unlocking the $200 billion digital opportunity in

Southeast Asia, Singapore: Google and Temasek.

Grab, 2018. Grab Merges with Uber in Southeast Asia, Singapore and San Fransisco: Grab Press

Centre.

Liao, J., Welsch, H. & Pistrui, D., 2009. Entrepreneurial Expansion Plans: An Empirical

Investigation of Infrastructure Predictors. New England Journal of Entrepreneurship, 12(1), pp.

19-32.

Loh, L., 2018. Go-Jek eyes expansion in Southeast Asia. Here’s where they could ride next.

[Online]

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heres-where-they-could-ride-next/

[Accessed 8 May 2018].

Low, A., 2018. Indonesia's ride-hailing firm Go-Jek to launch in Southeast Asia. [Online]

Available at: https://www.cnet.com/roadshow/news/indonesias-ride-hailing-firm-go-jek-to-

launch-in-southeast-asia/

[Accessed 25 May 2018].

Pham, S., 2018. Uber quits 8 countries in Southeast Asia, selling out to rival Grab. [Online]

Available at: http://money.cnn.com/2018/03/25/technology/uber-grab-deal-southeast-

asia/index.html

[Accessed 7 May 2018].

Reuters Staff, 2017. Indonesian ride-hailing firm Go-Jek to expand to Philippines in 2018,

Singapore: Reuters.

Robson, C., 2002. Real World Research. 2nd ed. Oxford: Blackwell Publishing.

Russell, J., 2016. Report: Southeast Asia's Internet Economy to Grow to $200 by 2025. [Online]

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to-grow-to-200b-by-2025/

[Accessed 10 May 2018].

Russell, J., 2017. Google: Southeast Asia's Internet Economy is Growing Faster Than Expected.

[Online]

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growing-faster-than-expected/

[Accessed 5 May 2018].

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Saunders, M., Lewis, P. & Thornhill, A., 2016. Research Methods for Business Students. 7th ed.

Harlow: Pearson Education Limited.

Sekaran, U., 2003. Research Methods for Business: A Skill-Building Approach. 4th ed. New

York: John Wiley & Sons.

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2025. [Online]

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Appendix

Section A: Personal Profile

Name : ……………………………………………………………

Please place a tick “” in the blank for each of the following questions:

1. Gender : Male Female

2. Age : 20 and below 21-30

31-40 40 and above

3. Education Level : Bachelor’s Degree

Masters

PhD

Others

4. Job Position : Board of Directors General Manager

Investors Shareholders

Business Developer R&D Team

Business Analyst

5. Working Experience : 5 years and below 5 years and above

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Section B: The Effect of Independent Variables

Please put a tick on the box where you think it is the most suitable answer given that (1) being
highly disagree to (5) highly agree.

# Questions (1) (2) (3) (4) (5)

The Rapid Growth of Southeast Asia’s Digital Market
1. Increased internet users impact Go-Jek’s expansion plan
2. Strengthen the company’s development
3. Many big investors start investing on Go-Jek
4. There is an opportunity to expand the business overseas
5. Increase the company’s market share
6. Increase the company’s market growth

Grab-Uber Deal
7. It is blocking the expansion plan of Go-Jek
8. Increasing motivation for the expansion plan of Go-Jek
9. The company has a strong market penetration
10. Strengthen the competition in ride-hailing industry
11. Pushing down the local market
12. Difficult to develop new strategies for business expansion
13 Difficult to enter a new market in Southeast Asian countries
14. Provides additional benefits for the company

Questions End.

(Thank you very much for the cooperation and the answers given for this questionnaire)

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