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The Role of Dynamic Capabilities and Industry 4.0 in Sustaining ICT Service SMEs in Malaysia: Conceptual Paper

Author

Listed:
  • Yasmin Dania Khairul Hisham

    (Faculty of Technology Management and Technopreneur ship, University Technical Malaysia Melaka, Centre of Technopreneur ship Development, 75450 Ayer Keroh, Melaka, Malaysia)

  • Nurulizwa Rashid

    (Faculty of Technology Management and Technopreneur ship, University Technical Malaysia Melaka, Centre of Technopreneur ship Development, 75450 Ayer Keroh, Melaka, Malaysia)

  • Haslinda Musa

    (Faculty of Technology Management and Technopreneur ship, University Technical Malaysia Melaka, Centre of Technopreneur ship Development, 75450 Ayer Keroh, Melaka, Malaysia)

Abstract

Small and medium-sized enterprises (SMEs) are core to the economic growth of the Malaysian economy, but there is a challenge in maintaining competitiveness in the face of disruptive wave of the Fourth Industrial Revolution (IR4.0). Current studies on IR4.0 adoption have been conducted mostly in the manufacturing industry with little emphasis on the service sector especially information and communication technology (ICT) SMEs. This theoretical paper is based on the dynamic capability theory and suggests a model that places four independent variables (technological capability, innovation culture, organizational readiness, and leadership capability) and organizational sustainability as the independent variable and mediated by IR4.0 adoption. The framework emphasizes the use of digital adoption in converting internal capacity into sustainable performance. The given study is impactful in that it talks about an insufficiently examined context of the service SME, applies dynamic capability theory to IR4.0 adoption research, and provides policy suggestions to enhance SME digital transformation.

Suggested Citation

  • Yasmin Dania Khairul Hisham & Nurulizwa Rashid & Haslinda Musa, 2025. "The Role of Dynamic Capabilities and Industry 4.0 in Sustaining ICT Service SMEs in Malaysia: Conceptual Paper," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 2174-2185, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:2174-2185
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    References listed on IDEAS

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    3. David J. Teece, 2007. "Explicating dynamic capabilities: the nature and microfoundations of (sustainable) enterprise performance," Strategic Management Journal, Wiley Blackwell, vol. 28(13), pages 1319-1350, December.
    4. Dubey, Rameshwar & Gunasekaran, Angappa & Childe, Stephen J. & Bryde, David J. & Giannakis, Mihalis & Foropon, Cyril & Roubaud, David & Hazen, Benjamin T., 2020. "Big data analytics and artificial intelligence pathway to operational performance under the effects of entrepreneurial orientation and environmental dynamism: A study of manufacturing organisations," International Journal of Production Economics, Elsevier, vol. 226(C).
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