Journal Screenshot

International Journal of Academic Research in Business and Social Sciences

Open Access Journal

ISSN: 2222-6990

Prefiguring Issues of SMEs Readiness in Malaysia as the Future of Industry 4.0 Unfolds

Mira Qerul Barriah Muhamad, Syed Jamal Abdul Nasir Syed Mohamad, Norzanah Mat Nor

http://dx.doi.org/10.6007/IJARBSS/v10-i12/8159

Open access

The topic of Industry 4.0 in regard to small and medium-sized enterprises (SMEs hereafter) have been exponentially debated among scholars up to this date. Industry 4.0 technology offers competitive tools to firms that help facilitate corporate resilience and cope with expiry business models. The ideology particularly dominates on automation in manufacturing that imperative for national economy awakening. In light of the modern state, technological business orientation must be meticulously deliberated, replacing the traditional one. SMEs in Malaysia are seen as not receptive when it comes to aligning businesses with coherent technology advancement. The issues on Industry 4.0 readiness among Malaysian SMEs have been listed by the Ministry of Trade and Industry in their report. Growing evidence shows high-tech technology has a positive relationship with organization performance. Thus, the pitfalls inhibit the development should be obliterated to achieve the idealism country we espouse.

Abdullah, D., Abdullah, M. Y., & Salleh, M. A. M. (2017). A review on the concept of fourth industrial revolution and the government’s initiatives to promote it among youths in Malaysia. Journal of Social Sciences and Humanities, 1-8.
Asian Development Bank. (2018). Small and Medium-Sized Enterprises in Asia and the Pacific: Context and Issues. Retrieved from https://www.adb.org/sites/default/files/linked-documents/A-SME-Context-and-Issues.pdf
Asian Productivity Organization. (2019). Gearing Up to Industry 4.0 Digitization Strategies for SMEs. Retrieved from https://www.apo-tokyo.org/publications/wp-content/uploads/sites/5/Gearing-Up-To-Industry-4.0-Digitization-Strategies-for-SMEs.pdf
Bogoviz, A. V., Osipov, V. S., Chistyakova, M. K., & Borisov, M. Y. (2019). Comparative analysis of formation of industry 4.0 in developed and developing countries. Studies in Systems, Decision and Control, 169, 155-164. https://doi.org/10.1007/978-3-319-94310-7_15
Büchi, G., Cugno, M., & Castagnoli, R. (2020). Smart factory performance and Industry 4.0. Technology Forecasting and Society Change, 150, 1-10.
https://doi.org/10.1016/j.techfore.2019.119790
Chiarini, A., Belvedere, V., & Grando., A. (2020). Industry 4.0 strategies and technological developments. An exploratory research from Italian manufacturing companies. Production Planning & Control, 31(16), 1385-1398.
https://doi.org/10.1080/09537287.2019.1710304
Department of Statistics Malaysia. (2020). Employment Statistics Second Quarter 2019. Retrieved from
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=439&bul_id=Y1A1WU14RG1ZRURxNkdkeHRMQjhjZz09&menu_id=Tm8zcnRjdVRNWWlpWjRlbmtlaDk1UT09
Department of Statistics Malaysia. (2020). Malaysia Economic Performance Third Quarter 2020. Retrieved from
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=100&bul_id=ZlRNZVRDUmNzRFFQQ29lZXJoV0UxQT09&menu_id=TE5CRUZCblh4ZTZMODZIbmk2aWRRQT09
Department of Statistics Malaysia. (2020). Small and Medium Enterprises (SMEs) Performance in 2019. Retrieved from
https://www.dosm.gov.my/v1/index.php?r=column/cthemeByCat&cat=159&bul_id=VjM1enZ2RmlVRDVTNFAwRWZiZUs3QT09&menu_id=TE5CRUZCblh4ZTZMODZIbmk2aWRRQT09
Fetterman, D. C., Cavalcante, C. G., Almeida, T. D. D., & Tortorella, G. L. (2018). How does industry 4.0 contribute to operations management? Journal of Industrial and Production Engineering, 1-14. https://doi.org/10.1080/21681015.2018.1462863
Hameed, W. U., Basheer, M. F., Iqbal, J., Anwar, A., & Ahmad, H. K. (2018). Determinants of firm’s open innovation performance and the role of R&D department: an empirical evidence from Malaysian SME’s. Journal of Global Entrepreneurship Research, 8(29), 1-20. https://doi.org/10.1186/s40497-018-0112-8
Harik, R., El Hachem, W., Medini, K., & Bernard, A. (2015). Towards a holistic sustainability index for measuring the sustainability of manufacturing companies. International Journal of Production Research, 53(13), 4117–4139.
https://doi.org/10.1080/00207543.2014.993773
Issa, A., Hatiboglu, B., Bildstein, A., & Bauernhansl., T. (2018). Industrie 4.0 Roadmap: Framework for Digital Transformation Based on the Concepts of Capability Maturity and Alignment. Procedia CIRP, 72, 973–978. https://doi.org/10.1016/j.procir.2018.03.151
Jesus, C. D., & Lima, R. M. (2020). Literature Search of Key Factors for the Development of Generic and Specific Maturity Models for Industry 4.0. Applied Sciences MDPI, 10, 1-19. https://doi.org/10.3390/app10175825
Kowang, T. O., Ying, Y. C., Yew, L. K., Hee, O. C., Fei, G. C., Long, C. S., & Saadon, M. S. I. bin. (2019). Industry 4.0 Competencies for Production Equipment Manufacturers in Malaysia. International Journal of Academic Research in Business and Socal Sciences, 9(2), 300–311. http://dx.doi.org/10.6007/IJARBSS/v9-i2/5545
Malaysia Digital Economy Corporation. (2020). C19 Tech Relief. Retrieved from https://mdec.my/home/c19techrelief/
Ministry of Economic Affairs. (2018). Mid-Term Review of the Eleventh Malaysia Plan, Economic Planning Unit, Ministry of Economic Affairs, Putrajaya.
Ministry of International Trade and Industry. (2018). Industry4WRD National Policy on Industry 4.0. Retrieved from
https://www.miti.gov.my/miti/resources/National%20Policy%20on%20Industry%204.0/Industry4WRD_Final.pdf
Mittal, S., Khan, M. A., Romero, D., & Wuest, T. (2018). A critical review of smart manufacturing & Industry 4.0 maturity models: Implications for small and medium sized enterprises (SMEs). Journal of Manufacturing Systems, 49, 194–214. https://doi.org/10.1016/j.jmsy.2018.10.005
Moeuf, A., Pellerin, R., Lamouri, S., Tamayo-Giraldo, S., & Barbaray, R. (2018). The Industrial Management of SMEs in the Era of Industry 4.0. International Journal of Production Research, 56 (3), 1118–1136. https://doi.org/10.1080/00207543.2017.1372647
Muller, J. M. (2019). Business Model Innovation in Small- and Medium-Sized Enterprises. Journal of Manufacturing Technology Management, 30(8), 1127–1142. https://doi.org/10.1108/JMTM-01-2018-0008
Nguyen, X. T., & Luu, Q. K. (2020). Factors affecting adoption of industry 4.0 by small- and medium-sized enteprises: A case in ho chi minh city, Vietnam. Journal of Asian Finance, Economics and Business, 7(6), 255-264.
https://doi.org/10.13106/jafeb.2020.vol7.no6.25
Radzi, N. M., & Wahab, A. S. E. (2017). Enhancing the competitiveness of Malaysian SMEs through technological capability: A perspective. The Social Sciences, 12(4), 719-724.
SME Corporation Malaysia. (2017). SME Annual Report 2017/18. Retrieved from http://www.smecorp.gov.my/index.php/en/laporan-tahunan/3342-laporan-tahunan-pks-2017-18
SME Corporation Malaysia. (2018). SME Report 2018. Retrived from
http://www.smecorp.gov.my/index.php/en/resources/2015-12-21-11-07-06/sme-annual-report
SME Corporation Malaysia. (2018). SME Definitions. Retrieved from
https://www.smecorp.gov.my/index.php/en/policies/2020-02-11-08-01-24/sme-definition
Stentoft, J., Rajkumar, C., & Madsen, E. S. (2017). Industry 4.0 in Danish Industry, Department of Entrepreneurship and Relationship Management. Kolding: University of Southern Denmark.
World Bank Group. (2018). Malaysia’s Digital Economy: A New Driver of Development. Washington, DC: World Bank. License: Creative Commons Attribution. Retrieved from https://www.worldbank.org/en/country/malaysia/publication/malaysias-digital-economy-a-new-driver-of-development

In-Text Citation: (Muhamad et al., 2020)
To Cite this Article: Muhamad, M. Q. B., Mohamad, S. J. A. N. S., & Nor, N. M. (2020). Prefiguring Issues of SMEs Readiness in Malaysia as the Future of Industry 4.0 Unfolds. International Journal of Academic Research in Business and Social Sciences, 10(12), 1283–1292.