Unlocking the Role of Digital Capabilities in the Resilience of Malaysian Small and Medium Practices (SMPs)

Azuraidah Taib, Yunita Awang, Jamaliah Said and Noor Erni Fazlina Mohd Akhir

Information Management and Business Review, 2025, vol. 17, issue 1, 171-183

Abstract: The current business environment is characterized by significant volatility and unpredictability due to technological breakthroughs, political dynamics and societal changes. These dynamics significantly affect both large corporations and small and medium enterprises (SMEs). In the current dynamic business environment, SMEs face numerous issues requiring resilience for survival and success. Key challenges SMEs face include insufficient financial resources, lack of skilled personnel and inadequate technological infrastructure. For SMEs to remain resilient, employers and employees must reach a certain technological competence and expertise. Therefore, this study aims to explore the relationship between digital capabilities and resilience of Malaysian small and medium practices (SMPs) as the impact of digital skills on the survival of the accounting sector is rarely studied. A total of 255 owners and managers of accounting firms registered in the Malaysian Institute of Accountants (MIA) database participated in the online survey. The results show a positive and moderate correlation between small accounting firms' resilience and digital capabilities' characteristics (human, collaborative, innovative and technological skills). The existence of small accounting firms in Malaysia depends primarily on their innovation capabilities. The findings suggest that digital capabilities are essential for the resilience of small accounting firms as they not only facilitate survival but also encourage development and innovation in times of crisis. It also transforms accountants' workflows and improves their efficiency, cost-effectiveness, accuracy and competitiveness. This finding implies that it is crucial for SMEs, to invest in digital capabilities to survive but also to remain competitive and growth potential during periods of disruption.

Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:rnd:arimbr:v:17:y:2025:i:1:p:171-183

DOI: 10.22610/imbr.v17i1(I).4385

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