Catalysing digital adoption in Malaysian SMES: An integrated TOE–RBV–SNT framework for inter-organisational collaboration (IOC)

Abstract

This study investigates the mediating role of the IOC in accelerating digital adoption among SMEs in emerging economies, using Malaysia as a case study. Malaysian SMEs are aligned with the broader aim of the Malaysia Digital Economy Blueprint (2021-2025), which seeks to make the country a high-income digital nation by 2030. Although SMEs account for 96.2% of businesses, contribute 39.1% (USD128.8 billion) to GDP, and employ 7.86 million people (DOSM, 2023), digital adoption remains sluggish. Malaysia’s Digital Adoption Index score (0.69) lags behind regional leaders such as Singapore (0.87) and South Korea (0.86), with further challenges stemming from low rankings in SME digital connectivity and skills (World Bank, 2023; Portulans Institute, 2023). This thesis offers three central contributions: (1) advancing theory by integrating the TOE, RBV, and SNT frameworks into an intergrated conceptual model; (2) enhancing methodological rigour through a six-phase sequential mixed-methods design; and (3) presenting the IOC–SMEs Digital Adoption Playbook for Emerging Economies (Playbook), an empirically validated framework tailored to the Malaysian context and broader emerging economies. These contributions directly address gaps identified through a comprehensive SLR, which include (1) integrating previously fragmented technological, organisational, and network perspectives through an integrated conceptual framework that combines TOE, RBV, and SNT, thereby overcoming the methodological limitations of single-theory studies; (2) adopting a sequential mixed-methods approach that captures adoption patterns and evolutionary processes, thus mitigating the primary emphasis on quantitative studies; and (3) providing comprehensive empirical evidence from Malaysia's unique business environment, encompassing manufacturing and service industries, unlike most studies that focus on manufacturing, thereby enhancing the understanding of digital adoption in emerging economies rather than extrapolating from European contexts. The six-phase methodological design encompasses (1) a SLR of 109 peer-reviewed articles; (2) the development and validation of research instruments through four expert panels and pilot testing (n=40); (3) quantitative data collection from 396 SMEs across various sectors; (4) qualitative interviews with seven stakeholders (five CEOs and two academic experts); (5) synthesis of findings into a practical Playbook for emerging economies; and (6) validation within the Malaysian context through three industry forums involving 530 stakeholders and follow-up structured interviews (thirteen industry players and two academic experts). There are five findings from the research, which have been clearly outlined as design principles in the Playbook: (1) Technological Integration (with relative advantage and trust as drivers of adoption), (2) Organisational Transformation (focusing on leadership and internal readiness), (3) Collaborative Networks (where the IOC acts as a mediating force), (4) State-Level Integration (which addresses regional disparities), and (5) Resource Optimisation (employing blended support strategies to address capacity gaps). This thesis offers a theoretically integrated and empirically validated framework for understanding digital adoption in Malaysian SMEs, emphasising the mediating role of ICT Orientation. By employing the TOE, RBV, and SNT frameworks, it reinterprets IOC as a strategic instrument enabling SMEs in emerging economies to tackle resource, trust, and capability hurdles. The research confirms key adoption drivers through a six-phase mixed-methods approach, highlighting their different roles within emerging economy contexts. The result is a practical, context-sensitive model of SME digitalisation, executed via a national Playbook that has influenced policy initiatives such as the MVCR and UNCBF, led by the researcher.This study shifts the emphasis from firm-specific models to a broader, ecosystemic, relational, and policy-focused perspective on digital adoption in resource-constrained environments.