IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v9y2025issue-9p4198-4209.html

Conceptual Paper: The Antecedents Influencing Employee Digital Transformation Readiness in Malaysian Small and Medium Enterprises (SMEs)

Author

Listed:
  • Nani Shuhada Sehat

    (Senior Lecturer, Department of Management & Marketing, Faculty of Business Management, Universiti Teknologi MARA, Melaka Campus)

  • Siti Rohana Daud

    (Senior Lecturer, Department of Management & Marketing, Faculty of Business Management, Universiti Teknologi MARA, Melaka Campus)

  • Khaizie Sazimah Ahmad

    (Senior Lecturer, Department of Economics, Faculty of Business Management, Universiti Teknologi MARA, Melaka Campus)

  • Azira Rahim

    (Senior Lecturer, Department of Management & Marketing, Faculty of Business Management, Universiti Teknologi MARA, Melaka Campus)

  • Najihah Abdul Rahim

    (Senior Lecturer, Department of Management & Marketing, Faculty of Business Management, Universiti Teknologi MARA, Melaka Campus)

  • Intan Liana Suhaime

    (Senior Lecturer, Department of Management & Marketing, Faculty of Business Management, Universiti Teknologi MARA, Melaka Campus)

Abstract

Digital transformation has emerged as a critical driver of organizational competitiveness and sustainability in the global economy. In Malaysia, small and medium enterprises (SMEs) represent the backbone of the economy, accounting for most business establishments and employment. Despite their significant contributions, SMEs continue to lag larger organizations in digital transformation, raising concerns about their ability to remain competitive in an increasingly digitalized environment. Recognizing that employees are central to the success of transformation initiatives, this study investigates the antecedents influencing employee digital transformation readiness within Malaysian SMEs. Grounded in the Theory of Planned Behavior (TPB), the study examines how attitudes toward behavior, subjective norms, and perceived behavioral control shape employees’ readiness for digital transformation. A quantitative research design is employed, utilizing an online questionnaire distributed across SMEs from different economic sectors in Malaysia. Stratified purposive sampling is adopted to ensure sectoral representation, while data analysis is conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). To reduce potential bias, anonymity, validated measurement instruments, and pilot testing are employed. Theoretically, the study extends the application of TPB to the context of digital transformation in SMEs, while also acknowledging the importance of other potential influences such as digital literacy, leadership support, and organizational culture. Practically, the findings are expected to provide valuable insights for SME leaders and policymakers in designing targeted strategies, training programs, and policy initiatives that enhance employee readiness for digital transformation. Ultimately, this research emphasizes that digital transformation is not solely a technological challenge but also a human-centered process, where employee readiness plays a decisive role in enabling SMEs to thrive in Malaysia’s digital economy.

Suggested Citation

  • Nani Shuhada Sehat & Siti Rohana Daud & Khaizie Sazimah Ahmad & Azira Rahim & Najihah Abdul Rahim & Intan Liana Suhaime, 2025. "Conceptual Paper: The Antecedents Influencing Employee Digital Transformation Readiness in Malaysian Small and Medium Enterprises (SMEs)," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 9(9), pages 4198-4209, September.
    • Handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:4198-4209
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-9-issue-9/4198-4209.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/conceptual-paper-the-antecedents-influencing-employee-digital-transformation-readiness-in-malaysian-small-and-medium-enterprises-smes/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Martínez-Caro, Eva & Cegarra-Navarro, Juan Gabriel & Alfonso-Ruiz, Francisco Javier, 2020. "Digital technologies and firm performance: The role of digital organisational culture," Technological Forecasting and Social Change, Elsevier, vol. 154(C).
    2. Ates, Aylin & Acur, Nuran, 2022. "Making obsolescence obsolete: Execution of digital transformation in a high-tech manufacturing SME," Journal of Business Research, Elsevier, vol. 152(C), pages 336-348.
    3. Kyunghwan Oh & Hyeongseog Kho & Youngjin Choi & Seogjun Lee, 2022. "Determinants for Successful Digital Transformation," Sustainability, MDPI, vol. 14(3), pages 1-14, January.
    4. Leischnig, Alexander & Henneberg, Stephan C. & Thornton, Sabrina C., 2016. "Net versus combinatory effects of firm and industry antecedents of sales growth," Journal of Business Research, Elsevier, vol. 69(9), pages 3576-3583.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Shin, Seung Ki & Cho, Jaehyun & Park, Jinkyun, 2021. "Do we have a domain-specific group culture?," Reliability Engineering and System Safety, Elsevier, vol. 213(C).
    2. Shaofeng Wang & Hao Zhang, 2025. "How does digital supply chain transformation determine environmental, social, and governance (ESG) performance? Mediating role of firm integration and moderating effect of organizational digital culture," Operations Management Research, Springer, vol. 18(3), pages 960-986, September.
    3. Gagan Deep Sharma & Sascha Kraus & Amogh Talan & Mrinalini Srivastava & Christina Theodoraki, 2024. "Navigating the storm: the SME way of tackling the pandemic crisis," Small Business Economics, Springer, vol. 63(1), pages 221-241, June.
    4. Zheng, Liyuan & Zhang, Sheng & Gao, Di & Liu, Jingwei, 2025. "How does digital investment drive real-sector engagement? Theoretical and empirical evidence," International Review of Financial Analysis, Elsevier, vol. 108(PB).
    5. Hajiheydari, Nastaran & Delgosha, Mohammad Soltani & Olya, Hossein, 2021. "Scepticism and resistance to IoMT in healthcare: Application of behavioural reasoning theory with configurational perspective," Technological Forecasting and Social Change, Elsevier, vol. 169(C).
    6. Li, Yawen & Xia, Yufei & Sun, Zongting & Sun, Naili, 2025. "Does digital transformation affect systemic risk? Evidence from the banking sector in China," International Review of Financial Analysis, Elsevier, vol. 102(C).
    7. Zahoor, Nadia & Zopiatis, Anastasios & Adomako, Samuel & Lamprinakos, Grigorios, 2023. "The micro-foundations of digitally transforming SMEs: How digital literacy and technology interact with managerial attributes," Journal of Business Research, Elsevier, vol. 159(C).
    8. Meadows, Maureen & Merendino, Alessandro & Dibb, Sally & Garcia-Perez, Alexeis & Hinton, Matthew & Papagiannidis, Savvas & Pappas, Ilias & Wang, Huamao, 2022. "Tension in the data environment: How organisations can meet the challenge," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    9. Lucía Muñoz-Pascual & Carla Curado & Jesús Galende, 2021. "Fuzzy Set Qualitative Comparative Analysis on the Adoption of Environmental Practices: Exploring Technological- and Human-Resource-Based Contributions," Mathematics, MDPI, vol. 9(13), pages 1-21, July.
    10. Phuong Thi Kim Tran & Irene Wei Kiong Ting & Thien Huu Nguyen & Hanh Thi My Tran, 2023. "Determinants of Management Accounting Application Use in Vietnamese Telecommunications Companies: The Moderating Role of Organisational Culture," Sustainability, MDPI, vol. 15(19), pages 1-21, October.
    11. Lucas Gabriel De Paula Silveira & Eugênia Vale De Paula, 2026. "Dynamic capabilities erosion: a systematic review, integrative framework, and research agenda," Future Business Journal, Springer, vol. 12(1), pages 1-33, December.
    12. Garcia-Perez, Alexeis & Cegarra-Navarro, Juan Gabriel & Sallos, Mark Paul & Martinez-Caro, Eva & Chinnaswamy, Anitha, 2023. "Resilience in healthcare systems: Cyber security and digital transformation," Technovation, Elsevier, vol. 121(C).
    13. Ioannis N. Theotokas & Ioannis N. Lagoudis & Konstantina Raftopoulou, 2024. "Correction: Challenges of maritime human resource management for the transition to shipping digitalization," Journal of Shipping and Trade, Springer, vol. 9(1), pages 1-1, December.
    14. Li, Xiaolin & Zhang, Mengjie & Liu, Weiwei & Wang, Ziyue, 2024. "The impact of entrepreneurial co-founders' support on founders' entrepreneurial resilience in the high-tech industry: The roles of perceived digital technology and perceived failure-tolerant climate," Technological Forecasting and Social Change, Elsevier, vol. 202(C).
    15. Dharm Dev Bhatta & Muddassar Sarfraz & Larisa Ivascu & Marius Pislaru, 2023. "The Nexus of Corporate Affinity for Technology and Firm Sustainable Performance in the Era of Digitalization: A Mediated Model," Sustainability, MDPI, vol. 15(12), pages 1-20, June.
    16. Naeem, Muhammad Abubakr & Appiah, Michael & Karim, Sitara & Yarovaya, Larisa, 2023. "What abates environmental efficiency in African economies? Exploring the influence of infrastructure, industrialization, and innovation," Technological Forecasting and Social Change, Elsevier, vol. 186(PB).
    17. Wang, Jinpeng & Zhang, Tao, 2025. "Oil price uncertainty and corporate digital transformation: Evidence from China," Energy Economics, Elsevier, vol. 151(C).
    18. Qianqian Guo & Zhifang Su, 2023. "The Application of Industrial Robot and the High-Quality Development of Manufacturing Industry: From a Sustainability Perspective," Sustainability, MDPI, vol. 15(16), pages 1-26, August.
    19. Xie, Weihong & Zou, Yukun & Guo, Haizhen & Li, Zhongshun, 2024. "What drives digital innovation cycles? Evidence from manufacturing enterprises in China," Technological Forecasting and Social Change, Elsevier, vol. 204(C).
    20. Liu, Yang & Dong, Jiuyu & Ying, Ying & Jiao, Hao, 2021. "Status and digital innovation: A middle-status conformity perspective," Technological Forecasting and Social Change, Elsevier, vol. 168(C).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:9:y:2025:issue-9:p:4198-4209. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.