The Impact of Digital Transformation on Financial Outcomes in Malaysian Small and Medium Enterprises
Year: 2024
Type: article
Abstract: This paper explores the impact of digital transformation on the financial performance of Small and Medium Enterprises (SMEs) in Malaysia, emphasizing its critical role in enhancing profitability, revenue growth, and operational efficiency. By integrating theories such as the Resource-Based View and Dynamic Capabilities Theory, the study presents a model illustrating how digital adoption and strategic alignment drive financial outcomes in SMEs. The research highlights the challenges Malaysian SMEs face, including financial constraints, digital skills gaps, and inadequate infrastructure, while also discussing the opportunities digital transformation offers in the context of Malaysia’s broader digital economy goals. The findings underscore the importance of supportive government policies and targeted strategies to ensure SMEs can fully leverage digital transformation, contributing to national economic growth and competitiveness.
Authors: Li Chen Yang, Chee Wei Ming
Institution: City University Malaysia
Language: English
Subfield: Management of Technology and Innovation
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W4402322196