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The Role of Technology, Innovation, Organizational Culture, and Work Environment on Adopting Digitalization for Malaysian SMEs through Individual Motivation as a Mediator

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The paper tested the proposed questionnaire using a sample size of 35 respondents. The test includes internal consistency validity, validation of all constructs, and Pearson's correlation. This paper discusses integrating innovative practices within SMEs to improve performance and customer satisfaction. The demography shows that the manager's position is the highest among respondents (42.9%), service companies (51.4%), and age (36-50 years) at 48.6%. The minimum reliability (0.115) appeared between the epidemic (ENE) and the value creation (INV), suggesting low correlation. The highest correlation (0.738) appears between individual motivation (INM) and implementation (INI). Pearson correlation was estimated at either 5% or 1%. The lowest R2 value is recorded between epidemic (ENE) and the value creation (INV) (0.115), while the highest correlation (0.738) appears between individual motivation (INM) and implementation (INI). In addition, the values of Cronbach alpha range between 0.841 (SDB) and 0.898 (ENE). For the total correlation between variables, R2 ranges between 0.164 (ENE) and the highest value, 0.739 (INI), suggesting that the epidemic is not well correlated, more likely because the data collection took place way after the Coronavirus. Also, Cronbach alpha is high for INI, decussating implementing digital systems. All correlations between domains and total scores were tested under a 5% significance. A supportive organizational culture that encourages experimentation and embraces change is vital for successful digitalization; however, resistance to change can hinder progress. Meanwhile, leadership is critical in fostering a culture that prioritizes digital initiatives, influencing employee motivation and engagement. Cronbach alpha (0.843) is higher than the 0.6 threshold for the questionnaire elements. Hence, work on the broader scale of testing and analysis could proceed.
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