Work

Transforming Digital Business Model Innovation (dbmi) to Enhance Sme Business Performance in Malaysia: a Customer Perspective

Year: 2025

Type: article

Abstract: Amidst the contemporary digital scene, realizing Digital Business Model Innovation (DBMI) is an indispensable strategy for SMEs in Malaysia's F&B landscape to profoundly elevate their performance and ensure they remain competitive. This study delves into the pivotal impact of digital literacy, product innovation, service convenience, and digital interaction quality, with customer engagement serving as a crucial mediator. By analysing data from 300 SME customers through Multiple Regression Analysis, we uncover vital performance drivers, backed by Pearson Correlation and Factor Analyses to confirm the relationships and constructs at play. The results demonstrate that digital literacy and product innovation markedly boost customer engagement, establishing a vital connection to enhanced business outcomes. Furthermore, service convenience and digital interaction quality emerge as indispensable components, cultivating customer loyalty, advocacy, and seamless experiences. These insights emphasize the pressing necessity for SMEs to implement customer-centric digital strategies, harnessing innovation and exceptional digital interactions to attain sustainable growth, bolster market resilience, and secure a competitive advantage in an ever-evolving digital marketplace.

Source: Advanced International Journal of Business Entrepreneurship and SMEs

DOI: 10.35631/aijbes.724031

Authors: Norliza Ramli, Hazliza Haron

Institution: Universiti Teknologi MARA

Language: English

Topic: Digital Innovation in Industries

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: diamond

Funders: University of Oxford, Universiti Teknologi MARA, Universiti Malaysia Pahang, Universiti Teknologi Petronas