Transforming Agro-Food Smes In Malaysia Through Digital Innovation And Smart Technologies For Sustainable Competitiveness

Abstract

The adoption of digital transformation in agro-food small and medium enterprises (SMEs) has emerged as a critical strategy to enhance productivity, market competitiveness, and sustainability. However, the adoption rate remains low due to financial constraints, limited digital literacy, inadequate infrastructure, and resistance to change. This paper presents a conceptual framework for understanding the factors influencing digital transformation in agro-food SMEs in Malaysia. By integrating theoretical models such as the Technology Acceptance Model (TAM) and the Diffusion of Innovation (DOI) theory, this study highlights the drivers, barriers, and strategic enablers of digital adoption. The findings suggest that targeted financial support, capacity-building programs, regulatory improvements, and digital infrastructure enhancement are essential for accelerating digitalization in the agro-food sector. Additionally, government initiatives and industry collaborations play a pivotal role in fostering an ecosystem conducive to technological adoption. This study provides valuable insights for policymakers, business owners, and researchers in developing strategies to facilitate digital transformation, ensuring long-term sustainability and competitiveness in the agro-food industry.