Navigating Cultural Barriers: The Role of Socio-Technical Systems in Digital Transformation Readiness in SMEs

Digitalization in the industrial sector has become necessary for both the public and private sectors worldwide to adapt to the rapidly evolving digital landscape. This initiative is articulated in strategic plans designed to foster positive learning environments while minimizing adverse impacts on o...

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Main Authors: Lilian A/P Anthonysamy, Aysa Siddika, Nur Riana Aqlily
Format: Article
Language:English
Published: Ital Publication 2025-06-01
Series:Emerging Science Journal
Subjects:
Online Access:https://ijournalse.org/index.php/ESJ/article/view/2898
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author Lilian A/P Anthonysamy
Aysa Siddika
Nur Riana Aqlily
author_facet Lilian A/P Anthonysamy
Aysa Siddika
Nur Riana Aqlily
author_sort Lilian A/P Anthonysamy
collection DOAJ
description Digitalization in the industrial sector has become necessary for both the public and private sectors worldwide to adapt to the rapidly evolving digital landscape. This initiative is articulated in strategic plans designed to foster positive learning environments while minimizing adverse impacts on organizations. Although digital maturity has become an organization's top priority, enterprises still lack digital transformation consciousness and means. The interaction between technological transformation and cultural change highlights the necessity of addressing the resistance during the transition. Utilizing the socio-technical system theory, this study investigates the impact of organizational culture on the readiness for digital transformation in SME enterprises in Malaysia. The study comprises responses from 176 employees across various sectors of SMEs in Malaysia. A quantitative data analysis was conducted by employing the PLS method. The study found that technology, processes, customers, and partners positively impact the organization's digital transformation readiness (DTR). However, it was found that cultural factors within an organization act as a barrier to progress on the DTR. The present study provides insights by identifying critical factors in the digitalization process to enhance operations and business value to achieve sustainable development and improve quality of life through the digital economy.
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institution Kabale University
issn 2610-9182
language English
publishDate 2025-06-01
publisher Ital Publication
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series Emerging Science Journal
spelling doaj-art-e2cfc33ff47c48fab620e29af244a5562025-08-20T03:31:45ZengItal PublicationEmerging Science Journal2610-91822025-06-01931231124610.28991/ESJ-2025-09-03-062628Navigating Cultural Barriers: The Role of Socio-Technical Systems in Digital Transformation Readiness in SMEsLilian A/P Anthonysamy0Aysa Siddika1https://orcid.org/0000-0001-7407-5150Nur Riana Aqlily2Centre for Management and Marketing Innovation (CMMI), COE for Business Innovation and Communication, Faculty of Management, Multimedia University, CyberjayaCentre for Management and Marketing Innovation (CMMI), COE for Business Innovation and Communication, Faculty of Management, Multimedia University, CyberjayaDewadewi Empire EnterpriseDigitalization in the industrial sector has become necessary for both the public and private sectors worldwide to adapt to the rapidly evolving digital landscape. This initiative is articulated in strategic plans designed to foster positive learning environments while minimizing adverse impacts on organizations. Although digital maturity has become an organization's top priority, enterprises still lack digital transformation consciousness and means. The interaction between technological transformation and cultural change highlights the necessity of addressing the resistance during the transition. Utilizing the socio-technical system theory, this study investigates the impact of organizational culture on the readiness for digital transformation in SME enterprises in Malaysia. The study comprises responses from 176 employees across various sectors of SMEs in Malaysia. A quantitative data analysis was conducted by employing the PLS method. The study found that technology, processes, customers, and partners positively impact the organization's digital transformation readiness (DTR). However, it was found that cultural factors within an organization act as a barrier to progress on the DTR. The present study provides insights by identifying critical factors in the digitalization process to enhance operations and business value to achieve sustainable development and improve quality of life through the digital economy.https://ijournalse.org/index.php/ESJ/article/view/2898digital transformation readinessorganizational culturesocio-technical system theorysmes
spellingShingle Lilian A/P Anthonysamy
Aysa Siddika
Nur Riana Aqlily
Navigating Cultural Barriers: The Role of Socio-Technical Systems in Digital Transformation Readiness in SMEs
Emerging Science Journal
digital transformation readiness
organizational culture
socio-technical system theory
smes
title Navigating Cultural Barriers: The Role of Socio-Technical Systems in Digital Transformation Readiness in SMEs
title_full Navigating Cultural Barriers: The Role of Socio-Technical Systems in Digital Transformation Readiness in SMEs
title_fullStr Navigating Cultural Barriers: The Role of Socio-Technical Systems in Digital Transformation Readiness in SMEs
title_full_unstemmed Navigating Cultural Barriers: The Role of Socio-Technical Systems in Digital Transformation Readiness in SMEs
title_short Navigating Cultural Barriers: The Role of Socio-Technical Systems in Digital Transformation Readiness in SMEs
title_sort navigating cultural barriers the role of socio technical systems in digital transformation readiness in smes
topic digital transformation readiness
organizational culture
socio-technical system theory
smes
url https://ijournalse.org/index.php/ESJ/article/view/2898
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AT aysasiddika navigatingculturalbarrierstheroleofsociotechnicalsystemsindigitaltransformationreadinessinsmes
AT nurrianaaqlily navigatingculturalbarrierstheroleofsociotechnicalsystemsindigitaltransformationreadinessinsmes