Factors for the adoption of digital technologies in the machinery and metal manufacturing sector in Klang Valley Malaysia

Chew, Ee-Er (2025) Factors for the adoption of digital technologies in the machinery and metal manufacturing sector in Klang Valley Malaysia. Master dissertation/thesis, UTAR.

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Abstract

The advancement of Industry 4.0 has accelerated the adoption of digital technologies in the machinery and metal manufacturing sector to improve efficiency, competitiveness, and sustainability. This study explores the key factors influencing digital technology adoption and its impact on manufacturing performance—specifically, time, cost, and quality improvements. Guided by the Technology-Organisation-Environment (TOE) framework, a structured questionnaire was distributed via email and social media, yielding 55 valid responses from small, medium, and large firms. Descriptive statistics and Principal Component Analysis (PCA) were used for analysis. Findings show that perceived usefulness, top management support, compatibility, market demand, and competitive pressure are the most influential adoption factors. PCA identified three core dimensions: Perceived Technological Fit, Institutional and Organisational Readiness, and External Business Environment. Performance-wise, digital technologies notably improve time efficiency, quality control, and cost management. The study concludes that successful digital transformation depends on aligning technological capabilities with organisational readiness and environmental drivers. Key recommendations include enhancing leadership support, upskilling the workforce, and expanding digital infrastructure— particularly for SMEs. These insights provide practical guidance for industry stakeholders and policymakers aiming to promote sustainable industrial digitalisation.

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