An Empirical Investigation on the Relationship between Digitization and Stakeholder Connections on SME Sustainability in the Suburbs of Malaysia

Abstract

The present study explores the relationship between digitization and stakeholder connections on the SME sustainability in the suburbs of Malaysia. This study uses digitization as a construct measured by digital productiveness, digital effectiveness and digital performance from TAM theory. Further, the study also investigates the mediating role stakeholder connections from stakeholders’ theory on the SME sustainability in the suburbs of Malaysia. A structured questionnaire has been used for collecting the quantitative data from seven suburbs from Selangor, Malaysia. The proposed model has been analysed first order analysis and second order analysis using PLS-SEM. The study empirically demonstrated digitization has positive and significant relationship on SME sustainability. Digital productivity, digital effectiveness, digital performance shows non-significant on SME sustainability. Similarly, stakeholder connection also has a strong mediating role on the digitization, digital productivity, and digital performance on SME sustainability. However, the findings demonstrate empirically Digital effectiveness do not have significance neither direct nor indirect effect on SME sustainability. This study focuses exclusively on SME sustainability in suburbs of Malaysia, and this depicts its novelty.