Digital Transformation as a Driver for Internationalisation: A Study of Malaysian SMEs in the Manufacturing Industry

Abstract

This research studies the effects of digital transformation (DT) and Small and Medium-sized Enterprises (SMEs) internationalisation on the Malaysian manufacturing industry. The application of advanced technologies facilitates Malaysian manufacturing SMEs to optimise their processes, enhance productivity, and become active players in the international markets. With digital devices and technologies, such companies have efficiently handled supply chains and engaged consumers, making it easier for them to enter new overseas markets. The overall sample size for this study was 402. A set of research instruments was developed bilingually for English and Bahasa Melayu respondents through a translation procedure. Data were gathered by email and Google Forms, and a random sample method was utilised. The Smart PLS version 4.0 data analysis allowed a thorough assessment of the complex links between DT and SME internationalisation. The significant results, measured by using recognised statistical standards, highlight their major impact on increasing the productivity and competitiveness of Malaysia's manufacturing industry. In conclusion, DT has undeniably proven to be a vital enabler of Malaysia's manufacturing industries’ internationalisation. By embracing advanced technologies and innovative practices, these industries have significantly enhanced their productivity, responsiveness, and competitiveness, positioning themselves as formidable players in the dynamic and challenging international market landscape.