A Conceptual Analysis of the Technology, Organisation, Environment, Readiness and Industry 4.0 Adoption in Malaysia Small and Medium Enterprises
Abstract
Technology advancement is a primary element in differentiating Industry Revolution 4.0 (IR 4.0) from previous Industrial Revolutions. This revolution changes the nature of workforces, and the way people work. As a result of rapid technological advancement through Industry 4.0, SMEs are finding it more difficult to innovate and adopt. SMEs have difficulty adopting Industry 4.0; hence they tend to remain inactive. They can, however, reap greater benefits if they are more active and open to this new revolution. The current paper aims to examine the potential for reviewing to investigate, in the context of Malaysian SMEs and the adoption of Industry 4.0, whether the relationships between technology, organisations, environment, and Industry 4.0 adoption are mediated by readiness. Also, the paper analysed the various issues and concepts related to the study through various literatures. The study's results are expected to demonstrate that the relationships between technology, organisations, and environmental aspects are mediated by a readiness to adopt Industry 4.0. This finding will provide information to SMEs on which aspects for the company to improve to be ready and adopt Industry 4.0. It will also be useful to policymakers who create strategies and support systems to encourage the growth of Malaysian SMEs.
References
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[4] Ali, M., & Miller, L. (2017). ERP system implementation in large enterprises – a systematic literature review. Journal of Enterprise Information Management, 30(4).DOI: https://doi.org/10.1108/JEIM-07-2014-0071
[5] Amini, M., & Bakri, A. (2015). Cloud computing adoption by SMEs in the Malaysia: A multi-perspective framework based on DOI theory and TOE framework. Journal of Information Technology & Information Systems Research (JITISR), 9(2), 121–135.
[6] Arcidiacono, F., Ancarani, A., Di Mauro, C., & Schupp, F. (2019). Where the Rubber Meets the Road. Industry 4.0 among SMEs in the Automotive Sector. IEEE Engineering Management Review, 47(4), 86–93. DOI: https://doi.org/10.1109/EMR.2019.2932965
[7] Arnold, C., & Voigt, K. I. (2019). Determinants of Industrial Internet of Things Adoption in German Manufacturing Companies. International Journal of Innovation and Technology Management, 16(6). DOI:https://doi.org/10.1142/S021987701950038X
[8] Awa, H. O., Ukoha, O., & Emecheta, B. C. (2016). Using T-O-E theoretical framework to study the adoption of ERP solution. Cogent Business and Management. DOI:https://doi.org/10.1080/23311975.2016.1196571
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[10] Bhattacharya, M., & Wamba, S. F. (2015). A Conceptual Framework of RFID Adoption in Retail Using TOE Framework. International Journal of Technology Diffusion, 6(1), 1–32. DOI:https://doi.org/10.4018/ijtd.2015010101
[11] Castelo-Branco, I., Cruz-Jesus, F., & Oliveira, T. (2019). Assessing Industry 4.0 readiness in manufacturing: Evidence for the European Union. Computers in Industry, 107, 22–32. DOI:https://doi.org/10.1016/j.compind.2019.01.007
[12] Cevik Onar, S., Ustundag, A., Kadaifci, Ç., & Oztaysi, B. (2017). The Changing Role of Engineering Education in Industry 4.0 Era. In Industry 4.0: Managing The Digital Transformation (pp. 137–151). DOI:https://doi.org/10.1007/978-3-319-57870-5_8
[13] Chiarini, A., Belvedere, V., & Grando, A. (2020). Industry 4.0 strategies and technological developments. An exploratory research from Italian manufacturing companies. Production Planning & Control, 1–14. DOI:https://doi.org/10.1080/09537287.2019.1710304
[14] Cruz-jesus, F., Pinheiro, A., & Oliveira, T. (2019). Computers in Industry Understanding CRM adoption stages : empirical analysis building on the TOE framework. Computers in Industry, 109, 1–13. DOI:https://doi.org/10.1016/j.compind.2019.03.007
[15] Frank, A. G., Dalenogare, L. S., & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210(September 2018), 15–26. DOI: https://doi.org/10.1016/j.ijpe.2019.01.004
[16] Hammer, M., & Champy, J. (2002). Reengineering the Corporation: A Manifesto for Business Revolution. DOI: https://doi.org/10.2307/258943
[17] Hidayatno, A., Rahman, I., & Irminanda, K. R. (2019). A conceptualisation of industry 4.0 adoption on textile and clothing sector in Indonesia. ACM International Conference Proceeding Series, 339–343. DOI:https://doi.org/10.1145/3364335.3364351
[18] Hizam-Hanafiah, M., Soomro, M. A., & Abdullah, N. L. (2020). Industry 4.0 readiness models: A systematic literature review of model dimensions. In Information (Switzerland) (Vol. 11, Issue 7, pp. 1–13). DOI:https://doi.org/10.3390/info11070364
[19] Horváth, D., & Szabó, R. Z. (2019). Driving forces and barriers of Industry 4.0: Do multinational and small and medium-sized companies have equal opportunities? Technological Forecasting and Social Change, 146(June), 119–132. DOI: https://doi.org/10.1016/j.techfore.2019.05.021
[20] Idris, A., Edwards, H., & Mcdonald, S. (2017). E-commerce Adoption in Developing Countries SMEs : What Do the Prevailing Theoretical Models Offer Us ? ICoEC 2017 Proceedings, 20–28.
[21] Ifinedo, P. (2011). An empirical analysis of factors influencing internet/e-business technologies adoption by SMEs in Canada. International Journal of Information Technology and Decision Making, 10(4), 731–766. DOI:https://doi.org/10.1142/S0219622011004543
[22] Jayashree, S., Malarvizhi, C. A., & Hassan Reza, M. N. (2019). The Impact of Organizational Readiness on IR 4 . 0 and Sustainability-A Theoretical Framework for SMEs in Malaysia. Eurasian Journal of Analytical Chemistry, 14(1), 209–215.
[23] Kaminski, J. (2011). Diffusion of innovation theory. Canadian Journal of Nursing Informatics, 6(2), 1-6.
[24] Kaur, B. (2019). Malaysia falls behind in IR4.0 migration. New Straits Times.
[25] Lin, D., Lee, C. K. M., Lau, H., & Yang, Y. (2018). Strategic response to Industry 4.0: an empirical investigation on The Chinese automotive industry Article information. Industrial Management & Data Systems, 118(3), 0–18.
[26] Maria, S., Darma, D. C., Amalia, S., Hakim, Y. P., & Pusriadi, T. (2019). Readiness to Face Industry 4.0. International Journal of Scientific and Technology Research, 8(9), 2363–2368.
[27] Meuter, M. L., Bitner, M. J., Ostrom, A. L., & Brown, S. W. (2005). Choosing among alternative service delivery modes: An investigation of customer trial of self-service technologies. Journal of Marketing, 69(2), 61–83.DOI: https://doi.org/10.1509/jmkg.69.2.61.60759
[28] Nair, J., Chellasamy, A., & Singh, B. N. B. (2019). Readiness factors for information technology adoption in SMEs: testing an exploratory model in an Indian context. Journal of Asia Business Studies, 13(4), 694–718. DOI:https://doi.org/10.1108/JABS-09-2018-0254
[29] Nugroho, M. A., & Andryzal Fajar, M. (2017). Effects of Technology Readiness Towards Acceptance of Mandatory Web-Based Attendance System. Procedia Computer Science, 124, 319–328. DOI:https://doi.org/10.1016/j.procs.2017.12.161
[30] Nugroho, M. A., Susilo, A. Z., Fajar, M. A., & Rahmawati, D. (2017). Exploratory Study of SMEs Technology Adoption Readiness Factors. Procedia Computer Science, 124, 329–336. DOI:https://doi.org/10.1016/j.procs.2017.12.162
[31] Oliveira, T., & Martins, M. F. (2010). Information technology adoption models at Firm Level: Review of literature. 4th European Conference on Information Management and Evaluation, ECIME 2010, 14(1), 312–322.
[32] Oliveira, T., Thomas, M., & Espadanal, M. (2014). Assessing the determinants of cloud computing adoption: An analysis of the manufacturing and services sectors. Information & Management. DOI:https://doi.org/10.1016/j.im.2014.03.006
[33] Paydar, S., & Endut, I. R. (2013). Key drivers of RFID adoption in Malaysian retail industry, a theoretical model. 2013 IEEE International Conference on RFID-Technologies and Applications, RFID-TA 2013. DOI:https://doi.org/10.1109/RFID-TA.2013.6694548
[34] Paydar, S., Endut, I. R., Yahya, S., & Rahman, S. H. A. (2014). Environmental Factors Influencing the Intention to Adopt RFID Technology in Retail Industry: An Empirical Study. Asia-Pacific Journal of Management Research and Innovation, 10(1), 13–26. DOI: https://doi.org/10.1177/2319510x14529490
[35] Puklavec, B., Oliveira, T., & Popovič, A. (2018). Understanding the Determinants of Business Intelligence System Adoption Stages : An Empirical Study of SMEs. Industrial Management & Data Systems, 118(1), 236–261.
[36] Rahardjo, J., & Yahya, S. (2010). Advanced Manufacturing Technology Implementation Process in SME : Critical Success Factors. 12(2).
[37] Ramdani, B., Kawalek, P., & Lorenzo, O. (2009). Predicting SMEs' Adoption of Enterprise Systems. Journal of Enterprise Information Management, 22(1/2), 10–24. DOI: https://doi.org/10.1108/17410390910922796
[38] Reza, M. N. H., Jayashree, S., & Malarvizhi, C. A. (2021). Industry 4.0 and Sustainability - A study on Malaysian MSC Status Companies. Exploring Information Systems Research Boundaries (EISRB) - Series 3, January, 91–104.
[39] Rogers, E. M. (1983). Diffusion of Innovations. In An Integrated Approach to Communication Theory and Research, Third Edition. DOI: https://doi.org/10.4324/9780203710753-35
[40] Rogers, E. M. (2003). Diffusion of Innovations, 5th Edition.
[41] Samaranayake, P., Ramanathan, K., & Laosirihongthong, T. (2017). Implementing industry 4.0 - A technological readiness perspective. IEEE International Conference on Industrial Engineering and Engineering Management, 2017-Decem, 529–533. DOI: https://doi.org/10.1109/IEEM.2017.8289947
[42] Sari, R. P., & Santoso, D. T. (2020). Readiness Factor Identification on Kabupaten Karawang SMEs towards Industry 4.0 Era. Jurnal Teknik Industri, 22(1), 65–74. DOI: https://doi.org/10.9744/jti.22.1.65-74
[43] Sayginer, C., & Ercan, T. (2020). Understanding determinants of cloud computing adoption using an integrated diffusion of innovation (Doi)-technological, organisational and environmental (TOE) model. Humanities and Social Sciences Reviews, 8(1), 91–102. DOI: https://doi.org/10.18510/hssr.2020.8115
[44] Schroeck, M., Gill, J., Kwan, A., & Sharma, D. (2020). Evolving partner ecosystems in Industry 4.0 | Deloitte Insights.
[45] Sevinç, A., Gür, Ş., & Eren, T. (2018). Analysis of the difficulties of SMEs in industry 4.0 applications by analytical hierarchy process and analytical network process. Processes, 6(12). DOI: 10.3390/pr6120264
[46] Sivathanu, B., & Pillai, R. (2018). Smart HR 4.0 - – how industry 4.0 is disrupting HR. Human Resource Management International Digest, 26(4), 7–11. DOI:https://doi.org/10.1108/HRMID-04-2018-0059
[47] Skafi, M., Yunis, M. M., & Zekri, A. (2020). Factors influencing SMEs' adoption of cloud computing services in Lebanon: An empirical analysis using TOE and contextual theory. IEEE Access, 8, 79169–79181. DOI:https://doi.org/10.1109/ACCESS.2020.2987331
[48] Ślusarczyk, B. (2018). Industry 4.0 – Are we ready? Polish Journal of Management Studies, 17(1), 232–248. DOI:https://doi.org/10.17512/pjms.2018.17.1.19
[49] Sony, M., & Naik, S. (2019). Key ingredients for evaluating Industry 4.0 readiness for organisations: a literature review. Benchmarking: An International Journal.
[50] Sriram, R. M., & Vinodh, S. (2020). Analysis of readiness factors for Industry 4.0 implementation in SMEs using COPRAS. International Journal of Quality and Reliability Management. DOI:https://doi.org/10.1108/IJQRM-04-2020-0121
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Published
2023-06-26
How to Cite
ISMAIL, Siti Nurul Aziah et al.
A Conceptual Analysis of the Technology, Organisation, Environment, Readiness and Industry 4.0 Adoption in Malaysia Small and Medium Enterprises.
Theoretical and Practical Research in Economic Fields, [S.l.], v. 14, n. 1, p. 175 - 185, june 2023.
ISSN 2068-7710.
Available at: <https://journals.aserspublishing.eu/tpref/article/view/7871>. Date accessed: 10 may 2024.
doi: https://doi.org/10.14505/tpref.v14.1(27).14.
Section
Articles
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