Examining the Relationship Between Technological Factors and Successful Digitalisation in Malaysian SMEs: The Mediating Role of Individual Motivation

Digitalisation is crucial for small and medium-sized enterprises (SMEs) in Malaysia, contributing significantly to the economy and employment. This study investigates the impact of technical factors, including technological expertise and infrastructure, on successful digital transformation, while considering human motivation as a mediator. Using a quantitative approach with data from 270 SMEs in Selangor analyzed via Structural Equation Modelling (SEM), findings reveal that technical infrastructure greatly influences successful digitalisation, whereas technological knowledge has a lesser impact. Moreover, individual motivation partially mediates these relationships. The research enriches the Technology-Organization-Environment (TOE) and Unified Theory of Acceptance and Use of Technology (UTAUT) frameworks, highlighting the need for SMEs to enhance both technological infrastructure and workforce skills for effective digital transformation.