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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
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    References listed on IDEAS

    as
    1. Kyunghwan Oh & Hyeongseog Kho & Youngjin Choi & Seogjun Lee, 2022. "Determinants for Successful Digital Transformation," Sustainability, MDPI, vol. 14(3), pages 1-14, January.
    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. 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.
    4. 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).
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