Factors Affecting the Adoption of Digital Transformation among SME’s in Malaysia

Document Type : Research Paper


1 Ph.D., Department of Management & Entrepreneurship, University Kuala Lumpur Business School, 54000 Jalan Gurney Kuala Lumpur, Malaysia.

2 Assistant Prof., Department of Management & Entrepreneurship, University Kuala Lumpur Business School, 54000 Jalan Gurney Kuala Lumpur, Malaysia.


Digital Transformation has not been foreign to people in emerging economic growth, especially SME entrepreneurs in developing countries such as Malaysia. Digital transformation adoption is a way for an enterprise to improve the use of technology in a better way. But as the digital revolution has been evolving, there are still a few entrepreneurs who neglect it. The purpose of the present study is to investigate the factors affecting the adoption which is (competitive pressure, technology advancement, cost minimization, and environmental influence) on digital transformation adoption among SMEs in Malaysia. The relationship also consists of a moderating effect which is environment shock (pandemic covid-19) between the independent variable and dependent variable. The study also provides some knowledge for a deeper understanding of digital transformation and a guide to all SME entrepreneurs and others.


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