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Developing an IoT Framework for Industry 4.0 in Malaysian SMEs: An Analysis of Current Status, Practices, and Challenges

Abdulaziz, Qusay Adnan; Mad Kaidi, Hazilah; Masrom, Maslin; Hamzah, Halim Shah; Sarip, Shamsul; Dziyauddin, Rudzidatul Akmam; Muhammad-Sukki, Firdaus


Qusay Adnan Abdulaziz

Hazilah Mad Kaidi

Maslin Masrom

Halim Shah Hamzah

Shamsul Sarip

Rudzidatul Akmam Dziyauddin


This qualitative study aimed to explore the current status, practices, and challenges of Internet of Things (IoT) implementation and to develop an IoT framework for Industry 4.0 in Malaysia. Industry 4.0 enhances a company’s manufacturing competitiveness and efficiency. However, the implementation of Industry 4.0 in Malaysian small- and medium-sized enterprises (SMEs) is still in its early stages. Five participants from three different SMEs were selected for online interviews and a focus group. Due to the COVID-19 pandemic, the interviews were conducted online and lasted about 30 to 45 min. The data collected from the interviews were analyzed through thematic analysis and used to validate the literature review and to identify gaps in existing frameworks. The IoT framework was developed through a focus group of experts. This study found that the implementation of Industry 4.0 is relatively low in Malaysian manufacturing SMEs. SMEs are facing various challenges, including the need for education and training, budget constraints, and a lack of experience and knowledge among workers. This study found that the positive impact of IoT implementation included improved internal communication, reduced errors, and enhanced product quality and safety. In addition, this study resulted in the development of an IoT framework for SMEs in Malaysia.

Journal Article Type Article
Acceptance Date Mar 10, 2023
Online Publication Date Mar 13, 2023
Publication Date Mar 13, 2023
Deposit Date Mar 13, 2023
Publicly Available Date Mar 13, 2023
Publisher MDPI
Peer Reviewed Peer Reviewed
Volume 13
Issue 6
Article Number 3658
Keywords Industry 4.0, IoT framework, SMEs, Malaysia, manufacturing, status, practices, challenges


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