The key enablers of SMEs readiness in Industry 4.0: a case of Malaysia

Daisy Mui Hung Kee, Miguel Cordova and Sabai Khin

International Journal of Emerging Markets, 2023, vol. 20, issue 3, 1042-1062

Abstract: Purpose - The study sheds light on the internal enabling factors towards emerging market (EM) small and medium-sized enterprises’ (SMEs) preparedness for Industry 4.0 (I4.0) using three dimensions: managerial, operational and technological readiness. Design/methodology/approach - The study uses convenience sampling, having online and paper-based surveys and collecting 110 responses from manufacturing Malaysian SMEs. This sample allowed assessing the relationships of the hypothesized variables through the structural model of data analysis. Findings - This study’s findings demonstrate that financial capability and perceived benefits enhance Malaysian SMEs' managerial, operational and technological readiness. Research limitations/implications - Using Malaysia's case, this paper extends the discussion of the key drivers that underline the decision of EM firms to adopt I4.0. Practical implications - This study’s results provide valuable insights for policymakers to improve the digital ecosystem. Also, understanding critical drivers for I4.0 readiness would encourage SMEs in Malaysia to embrace new digital technologies. Originality/value - Although digital transformation towards I4.0 for manufacturing SMEs would be decisive, little is known about how ready these Malaysian firms are to adopt it or the driving factors that motivate them. Meanwhile, inadequate readiness causes a high failure rate in implementing new technology, processes or organizational changes.

Keywords: Industry 4.0; SMEs; Organizational readiness; Digital transformation; Digital revolution; Digital technology; Emerging market; Emerging economy (search for similar items in EconPapers)
Date: 2023
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-08-2021-1291

DOI: 10.1108/IJOEM-08-2021-1291

Access Statistics for this article

International Journal of Emerging Markets is currently edited by Prof Ilan Alon

More articles in International Journal of Emerging Markets from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().