Digitalization adoption for digital economy: an examination of Malaysian small medium-sized enterprises through the technology-organizationenvironment framework (original) (raw)
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Digital transformation refers to redefining the business process via digital technology. The innovation and digital revolution have remarkable effects on the global economy by affecting organisational relevancy in the marketplace. SMEs are considered as a nation's growth engine and seriously affected due to tech-adaptation challenges that arise at a fast pace such as COVID-19 outbreaks severely affected the SMEs businesses by the drop in demand and scarcity of resources all across the globe, including ASEAN region such as Malaysia, Indonesia, Singapore, Philippine, Thailand etc. Thus, to begin with digital transformation, enterprises must be aware of the factors influencing it as only few countries are lagging in digital transformation in the ASEAN region. This paper aims to highlight the factors influencing the digital transformation of SMEs focusing on internal and external factors. The Innovation and Technology Adoption Theory was selected as the underpinning theory for this research, along with the holistic Technology-Organisation-Environment (TOE) Model as the chosen framework to reflect technology adoption theory. The present study raises some practical implications for policymakers, government and industries. It will help accelerate the rapid adaptation of digital technology for SMEs and directly affect the growth of SMEs. The present study singled out that organisational, technological and environmental factors provide a widespread view of digital transformation of SMEs.
What affects digitalization process in developing economies? An evidence from SMEs sector in Oman
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Purpose-This paper identifies the forces that drive digital adoption among SMEs from low and high-tech industries in Malaysia. Design/methodology/approach-This research uses multiple case analyses based on data gathered by in-depth interviews with key representatives of 20 firms from low and high-tech industries in Malaysia. Findings-The findings suggest that digital adoption among SMEs derives by four fundamental forces, which are sales, marketing, process improvement and product development. Research limitations/implications-This study employed qualitative research, but lack of geographic diversity limits the generalisability of the case findings. This study provides several suggestions to policymakers and technology suppliers on how to encourage adoption of digitalisation among SMEs. Originality/value-This study proposes a model that presents the critical forces that drive digital adoption for export-oriented firms, thus enriching the knowledge in SME digitalisation literature.
Factors Affecting the Adoption of Digital Transformation among SME's in Malaysia
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Digital Transformation has not been foreign to people in emerging economic growth, especially SME entrepreneurs in developing countries such as Malaysia. Digital transformation adoption is a way for an enterprise to improve the use of technology in a better way. But as the digital revolution has been evolving, there are still a few entrepreneurs who neglect it. The purpose of the present study is to investigate the factors affecting the adoption which is (competitive pressure, technology advancement, cost minimization, and environmental influence) on digital transformation adoption among SMEs in Malaysia. The relationship also consists of a moderating effect which is environment shock (pandemic covid-19) between the independent variable and dependent variable. The study also provides some knowledge for a deeper understanding of digital transformation and a guide to all SME entrepreneurs and others.
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Signifikan: Jurnal Ilmu Ekonomi
The Indonesian government aims to promote information and communication technology (ICT) among micro and small enterprises to enhance their competitiveness in the global market. A survey was conducted among 180 micro and small enterprise owners in Makassar City using the Unified Theory of Acceptance and Use of Technology (UTAUT) model. The results showed that Performance Expectancy (PE) and Effort Expectancy (EE) insignificantly affect the Behavioral Intentions (BI) of the enterprise owners. It also indicated that Social Influence (SI) and Facilitating Conditions (FC) positively influence the adoption of ICT in micro and small enterprises. This study is novel and significant as it addresses a gap in the literature on digital transformation strategies, particularly in Makassar City, where such investigations are rare. Consequently, this study presents an original contribution to the field.JEL Classification: M2, O3, R2How to Cite:Tajuddin, I., Mahmud, A., & Syahnur, M. H. (2023). Det...
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