Factors influencing the adoption of industry 4.0 among service sector SMEs and the role of government intervention / Mira Qerul Barriah Muhamad

This study aims to identify the factors influencing the successful adoption of Industrial Revolution 4.0 (IR4.0) among small and medium-sized enterprises (SMEs) in the service sector in Malaysia. The research addresses the concern that Malaysian SMEs have a low rate of IR4.0 adoption. To achieve this, a conceptual framework for technology adoption was proposed and validated, with a particular focus on government intervention as a moderator. The target population consists of service sector SMEs in Kuala Lumpur and Selangor, registered under SME Corporation Malaysia. The data was obtained from the Ministry of Entrepreneur Development and Cooperatives' (MEDAC) website. A pilot study verified the reliability of the instruments used for data collection, which involved self-distributed questionnaires and online surveys. A total of 248 useable surveys were collected and analysed using SPSS version 28 and SmartPLS version 4. The results yield a statistically significant relationship between IT capability, employees' skills and knowledge, supply chain management, operations management, relative advantage, complexity and compatibility to their respective dependent variable, the adoption of IR4.0. Top management support and cost however have shown a negative relationship to the adoption. The study has identified a significant moderating effect of government intervention on the relationship between relative advantage and cost with the adoption of IR4.0. Overall, this research substantially contributes to the understanding of technological implementation, presenting a new conceptual model to examine technology adoption factors in the context of small-scale businesses.