An Empirical Analysis of Motivation and Challenges of Industry 4.0 Adoption in Malaysian ICT SMEs

Authors

  • Nurulizwa Abdul Rashid Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Centre of Technopreneurship Development, 75450 Ayer Keroh, Melaka, Malaysia
  • Yasmin Dania Khairul Hisham Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Centre of Technopreneurship Development, 75450 Ayer Keroh, Melaka, Malaysia
  • Samer Ali Al-Shami Institut Pengurusan Teknologi dan Keusahawanan, Universiti Teknikal Malaysia Melaka, Centre of Technopreneurship Development, 75450 Ayer Keroh, Melaka, Malaysia
  • Haslinda Musa Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Centre of Technopreneurship Development, 75450 Ayer Keroh, Melaka, Malaysia
  • Aini Khalida Muslim Faculty of Technology Management and Technopreneurship, Universiti Teknikal Malaysia Melaka, Centre of Technopreneurship Development, 75450 Ayer Keroh, Melaka, Malaysia
  • Md Fauzi Ahmad Department of Production and Operations Management, Faculty of Technology Management and Business, Universiti Tun Hussein Onn Malaysia, Batu Pahat, Johor, 86400, Malaysia

DOI:

https://doi.org/10.70917/ijcisim-2026-5079

Keywords:

Challenges IR 4.0, ICT SMEs, SDG 9: Industry, Innovation, Infrastructure

Abstract

Adoption of Industry 4.0 (IR 4.0) technologies by Malaysian Information and Communication Technology (ICT) small and medium-sized organizations (SMEs) are becoming increasingly important in facilitating digital transformation and long-term economic viability. Adoption in the SME service sector is still uneven despite significant national initiatives encouraging digitalization. 50 managerial-level respondents from ICT SMEs that have implemented at least one IR 4.0 technology were given an online survey as part of a quantitative study design. Descriptive statistics were used to analyze the gathered data to determine adoption trends, important factors, and significant challenges. The results show that the main motivation of IR 4.0 adoption are increased time-to-market, cost savings, customer requirements, and competitive pressure. The findings also show differences in company size, medium-sized enterprises show more advanced and integrated adoption of IR 4.0 technologies, especially in big data analytics and artificial intelligence, whereas micro enterprises concentrate on basic technologies like cloud computing and cybersecurity. The main challenges were found to be low strategy awareness, lack of staff knowledge, and ongoing employee education. These results emphasize how crucial strategic alignment and human capital development are to facilitating successful digital transformation. Policymakers and business professionals can use the study's practical findings to create focused initiatives that increase IR 4.0 adoption and enhance Malaysian ICT SMEs' competitiveness.

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Published

2026-08-24

How to Cite

Nurulizwa Abdul Rashid, Yasmin Dania Khairul Hisham, Samer Ali Al-Shami, Haslinda Musa, Aini Khalida Muslim, & Md Fauzi Ahmad. (2026). An Empirical Analysis of Motivation and Challenges of Industry 4.0 Adoption in Malaysian ICT SMEs. International Journal of Computer Information Systems and Industrial Management Applications, 18(19s), 730–741. https://doi.org/10.70917/ijcisim-2026-5079

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Section

Original Articles