Critical Success Factors of Smart Factory Adoption Among Malaysian Electrical and Electronics SMEs
Keywords:
Technology Readiness, Organizational Culture, Financial Culture, Electrical and Electronics, SMEs, MalaysiaAbstract
The Fourth Industrial Revolution (Industry 4.0) has led to the emergence of smart factories that integrate cyber-physical systems, IoT, AI, and big data to enhance production efficiency and flexibility. However, the adoption of smart factory technologies remains uneven, especially among small and medium enterprises (SMEs) in developing economies. This study investigates the critical success factors (CSFs) that influence the successful adoption of smart factory initiatives among Malaysian Electrical and Electronics (E&E) SMEs. Using a mixed-methods approach, data were collected through a structured survey of 150 SMEs and in-depth interviews with 10 industry experts. The results reveal that top management commitment, technological readiness, workforce competency, government support, and financial capacity are significant predictors of adoption success. The findings offer practical recommendations for policymakers and business leaders aiming to accelerate Industry 4.0 transformation in the Malaysian SME sector
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