Impact of digitalization on supply chain resilience in small and medium-sized enterprise (SME)

Zaimi, Nur Alya Zulfa (2024) Impact of digitalization on supply chain resilience in small and medium-sized enterprise (SME). Project Report. Universiti Teknikal Malaysia Melaka, Melaka, Malaysia. (Submitted)

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Abstract

The adoption of technology during the Fourth Industrial Revolution has led many industries to automate their operations. The COVID-19 pandemic in 2020 further tested businesses' resilience and encouraged organizations to incorporate technology into their processes. This study examines the connection between digitalizing the supply chain and its impact on supply chain resilience in small and medium-sized enterprises (SMEs) in Malaysia. In this study, 'digitalization' refers to the utilization of digital technologies to revolutionize business interactions within and between organizations. Intense market competition, unexpected demand patterns, and efficiency issues have driven organizations to explore technology utilization in their supply chains. Quantitative methods were employed, utilizing a questionnaire with a 5-point Likert scale. The study focuses on gathering responses from individuals employed in medium-sized enterprises located in the southern region of Malaysia. The target is to obtain feedback from a total of 170 respondents. The achieved response rate stands at approximately 72.94%. The data collected will be analyzed using SPSS. This research aims to provide insights into how supply chain digitalization contributes to the resilience of SMEs, guiding organizations facing challenges in technological integration. Objectives include identifying factors attributing to supply chain resilience in SME, examining the relationship between digitalization and resilience, and identifying significant variables influencing supply chain resilience in SME. By analyzing the collected data, this study aims to uncover the mechanisms through which supply chain digitalization impacts SME resilience. This study holds significant implications for the research community, offering valuable insights and practical guidelines for medium-sized enterprises in the southern region of Malaysia. The research highlights the lack of focus on the relationship between technology and resilience, particularly in the context of the growing but not yet mature phase of digitalization. To address this, the study recommends applying successful digitalization strategies from other industries to the supply chain, aiming to determine their efficiency in enhancing resilience for these enterprises.

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