Factors and Industry 4.0 Technology Adoption among ICT Service Smes in Malaysia: A Descriptive Assessment

Abstract

This study provides a descriptive assessment of the factors associated with Industry 4.0 adoption and the current level of implementation of eleven Industry 4.0 technologies among ICT service Small and Medium Enterprises (SMEs) in Malaysia. Drawing upon a sample of 150 respondents from registered Malaysian ICT service SMEs, the paper presents a descriptive, mean-based analysis of eight key adoption factors and eleven technologies. The findings indicate that customer requirements recorded the highest perceived importance (M = 4.493, SD = 0.610), followed by cost reduction (M = 4.307) and competitors' technology practices (M = 4.227). In terms of technological implementation, the Internet of Things (IoT) demonstrated the highest adoption level (M = 4.180, SD = 0.769), closely followed by System Integration (M = 4.013) and Cloud Computing (M = 3.953). In contrast, physical and highly specialized technologies, such as Autonomous Robots (M = 2.020, SD = 0.930) and Additive Manufacturing (M = 2.193, SD = 1.060), exhibited the lowest levels of adoption. The overall technology adoption mean was 3.172, indicating a moderate level of Industry 4.0 maturity. The paper highlights that ICT service SMEs prioritize digital solutions that are directly relevant to service delivery, business operations, and cloud-based infrastructure, while physical automation remains less applicable. The findings offer valuable insights for managers developing digital strategies and policymakers designing targeted digital transition support programs.