The Barriers of Digitalization in Malaysia: Perceptions from Small and Medium sized Enterprises

Abstract

Digital technologies are changing the face of the business. Organizations has to adopt technologies such as social media, mobile technology, cloud technologies, internet of things. It is important to adopt these technologies and with this SMEs can adopt after the transformation they are many opportunities. This study shows the barriers of digital transformation in Malaysian SMEs. Based on the Literature review which is available, a framework is developed, this paper uses quantitative analyses with 487 respondents were surveyed using questionnaires for the employees in Malaysia. Then the data was analysed by using SPSS (Statistical Package for Social Science) and also modelling technique Multiple Linear Regression, and reliability analysis. The results showed that the technology, psychological, Process are the Barriers that are effecting Digital Transformation in Malaysian SMEs.

 Keywords: Digital Transformation, Barriers of digital transformation, SMEs, Malaysia.