The Appropriate Strategies for Exporting Malaysian Manufacturing Small and Medium Enterprises for Corporate Sustainability in the Context of 4.0 Industrial Revolution

Abstract

Small and Medium Enterprises (SMEs) are the backbone of the Malaysian economy. Hence, SMEs must continue to contribute to the growth and development of the country. SMEs no longer can sustain domestic trade, and moving to the global market requires SMEs to be competitive. To seek competitive advantage, SMEs must take the opportunities of IR 4.0 technology and adopt appropriate strategies to enhance manufacturing processes and elevate productivity as well as participate in new export markets for corporate sustainability.

Methodology

A mixed method methodology was used for this research. The data collection tools were literature review, personal interviews, and web survey with 105 participants. A five-point Likert scale was adopted to indicate the respondent's degree of agreement or disagreement.

Results

Adopting IR 4.0, SMEs will be recognized globally and provides opportunities to compete and participate in the global value chain. However, SMEs face several barriers when adopting IR 4.0 technology including lack of financial support, technological knowledge, R&D related training, expert support, and absence of a global mind-set.

Conclusion and Recommendations

The findings revealed thatIR 4.0 will create extensive opportunities for Malaysian exporting manufacturing SMEs to innovate and reduce business costs by identifying the best solutions to solve business problems. IR 4.0 has become an enabler to increase productivity and compete with other large economies in the value chain. Malaysian manufacturing SMEs must leverage and maximize the benefits of IR 4.0 to secure new export opportunities from domestic to global markets.