NDUSTRY 4.0 DETERMINANTS AND COMPETITIVE ADVANTAGE- A STUDY ON MALAYSIAN SMEs

Abstract

This study explores the major influencing determinants shaping Industry 4.0 and its impact on
competitive advantage in the aspect of Malaysia. SMEs are one of the essential players in the
economy, attaining high expectations from customers and stakeholders. The Fourth Industrial
Revolution can be denoted as Industry 4.0, which can meet the expectations as it has emerged with
modernization and tremendous technological improvement. This revolution can transform products
and production systems through real-time data synchronization, thus can satisfy the customers with
modified products. The novelty of Industry 4.0 and its intrinsic complexity in recognizing the
determinants need to be explored as most recent studies discuss the technological aspect.
The findings would help to have useful insights for SMEs looking to step up modernization initiatives
with Industry 4.0. This study proposes a conceptual model with several hypotheses that will be tested
through a quantitative analysis for further research among Malaysian SMEs. Structural Equation
Modeling (SEM) will be used for data analysis.