Adoption of Industry 4.0 Technologies in Malaysian SMEs:A qualitative multiple case study
Wan Nor Shamirah (a), Mehran Doulatabadi (a)*, Azizah Yusof (b)

(a) Universiti Teknikal Malaysia Melaka, Malaysia
(b) INTI International University, Malaysia

Abstract

This study explores the adoption of Industry 4.0 technologies among Malaysian Small and Medium Enterprises (SMEs) and investigates the critical success factors and challenges they face in achieving digital transformation. Despite the national Industry4WRD policy introduced
in 2018, the adoption rate among Malaysian SMEs remains relatively low due to barriers such as limited financial resources, inadequate digital infrastructure, low digital literacy, and organizational resistance to change. This research employs a qualitative multiple case study approach, focusing on SMEs in manufacturing, services, and technology sectors. The data were
collected through semi-structured interviews and thematic analysis was conducted to uncover patterns in adoption readiness, internal and external drivers, and organizational maturity. The findings highlight that strong leadership commitment, financial readiness, skilled workforce,
and supportive government policies are key enablers, while lack of awareness, poor infrastructure, and low digital capabilities remain significant barriers. This study contributes to academic discourse, policymaking, and practical strategies for accelerating Industry 4.0
implementation in SMEs and enhancing their innovation capabilities.

Keywords: Industry 4.0 adoption- Small and Medium Enterprises (SMEs)- Malaysia

Topic: Innovative Education in the Digital Era