Navigating the future of industry 4.0 in Malaysia: A proposed conceptual framework on SMEs’ readiness

Abstract

As technology keeps advancing at an accelerated rate, small and medium-sized enterprises (hereafter SMEs) must prepare to adapt to the emergence of technology under an uncertain economic realm. Growing evidence shows Industry 4.0 has brought massive opportunities in respective industries, manufacturing and information technology. Innovation capability has become a distinct possibility, set to serve better product and service reengineering and distinction. Although Industry 4.0 paradigm has emerged worldwide, it is, however, still a challenge for small firms to adopt particularly in developing countries. The adoption process of Industry 4.0 digitalization varies considerably. Coming to terms with the low involvement and unreadiness of SMEs in Malaysia towards Industry 4.0 has induced researchers to conduct this study so that by employing cloud computing, Big Data, Artificial Intelligent, and the Internet of Things (IoT) SMEs can secure a new competitive advantage thus evolve significantly over time. Therefore, this study served as a solid conceptual paper with a proposed framework that intends to highlight potential factors which are people, process, and technology (PPT) enhancing SMEs’ readiness towards Industry 4.0 in a Malaysian context. At the end of the study, it is expected to conclusively contribute to a new horizon of knowledge supporting the significant development of SMEs.