Study on cultural transformation that drives towards an effective digital transformation of Small Medium Enterprises (SME) in selected states of Malaysia

Che Mansor, Aizuddin (2022) Study on cultural transformation that drives towards an effective digital transformation of Small Medium Enterprises (SME) in selected states of Malaysia. Doctoral thesis, University of Wales Trinity Saint David.

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Abstract

This research explores how organisational culture affects the adoption of digital transformation within the Small and Medium Enterprises (SME) in selected states of Malaysia. Although SMEs understand the need and benefits of digital transformation, their adoption rate remains low.This problem has negatively impacted most SMEs who are lagging in shifting towards digitalisation. Therefore, this research provides clarity and conceptualises a Digital Culture Transformation framework to resolve their business pain points and guide them in achieving sustainable value creation.This research adopts an exploratory sequential mixed-method research design. This research will focus on SMEs, covering both the micro-enterprises and small and medium-sized enterprises, in Selangor and Kuala Lumpur as the two states representing the highest SME population in Malaysia. This would potentially contribute more value to a significant population of business establishments in Malaysia. Based on the analysis. 98% of the SMEs agreed that the digital culture elements, i.e. Digital Vision, Innovation Culture, Agile Way of Working, Customer-centricity, Collaboration, and Digital Leadership, are vital to them. From this research, it is proven that there is a positive correlation between the digital culture elements and three core areas of value creation, which are: 1) financial performance, 2) productivity improvement,and 3) customer satisfaction. SMEs that intend to implement digital culture transformation will need to; 1) have the right attitude towards the behaviour, 2) positively influence the organisation by exerting social pressure that strengthens the digital culture, and 3) have the perceived behavioural control mainly appropriate processes, people or tools to implement the intended transformation.The main contribution of this research is threefold. Firstly, to uncover the core elements of a digital culture, which is currently an understudied subject. Secondly, to develop a culture transformation framework for the SME to achieve an effective digital transformation. Thirdly, as a contribution to the body of knowledge related to the digital transformation field of study. The direct output of this research will be the formulation of a culture transformation framework that can be adopted by SMEs. The conceptual model could serve as a critical frame of reference for Malaysia’s digital economy development plan, which subsequently supports the country's aspiration to boost its digital economy.

Item Type: Thesis (Doctoral)
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Theses and Dissertations > Doctoral Theses
Depositing User: Natalie Williams
Date Deposited: 03 Jan 2023 16:36
Last Modified: 03 Jan 2023 16:36
URI: https://repository.uwtsd.ac.uk/id/eprint/2217

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