Technology adoption and retail innovation among Malaysian SMEs: A qualitative exploration of digital transformation

Authors

  • Mohammad Firdaus Faiq Mohd Yusri Universiti Poly-Tech Malaysia
  • Norhaninah AGani Universiti Poly-Tech Malaysia
  • Jumain Amborashang Universiti Tun Abdul Razak

DOI:

https://doi.org/10.61688/jev.v6i1.260

Keywords:

technology adoption, retail innovation, Malaysian SMEs, digital transformation

Abstract

The increasing dominance of large retail chains poses significant challenges for small retailers, particularly in semi-urban areas such as Jempol, Negeri Sembilan. This study explores how small retail businesses leverage technology to remain competitive against larger retail players. Adopting a qualitative research design, semi-structured interviews were conducted with owners and employees of selected small retail stores in Jempol. The data were analysed using thematic analysis to identify recurring patterns related to technology adoption and competitive strategies. The findings reveal that digital marketing, online sales platforms, and basic data analytics play a crucial role in enhancing operational efficiency, expanding market reach, and strengthening customer relationships. Despite resource constraints and limited technological expertise, small retailers demonstrate adaptability by selectively adopting affordable and accessible technologies. The study highlights the importance of strategic technology utilisation, customer-centric approaches, and continuous innovation in sustaining competitiveness. This research contributes to the limited empirical literature on technological adoption among small retailers in small-town contexts. It provides practical insights for policymakers and practitioners seeking to support the digital transformation of small businesses.

 

.

Downloads

Download data is not yet available.

References

Alhaddi, H. (2015). Triple bottom line and sustainability: A literature review. Business and Management Studies, 1(2). https://doi.org/10.11114/bms.v1i2.752

Asif, M. (2025). How integrating digital technologies into retail channels affect customer experience in emerging international markets. University of Eastern Finland. https://erepo.uef.fi/server/api/core/bitstreams/a52e63f3-2b99-4cad-b07f-d8ef61cdb201/content

Braun, V., & Clarke, V. (2006). Using thematic analysis in psychology. Qualitative Research in Psychology, 3(2), 77–101. https://doi.org/10.1191/1478088706qp063oa

Breadstack. (2023, May 5). How e-commerce helps small businesses. https://breadstack.com/insights/e-commerce/ecommerce-helps-small-businesses/

Creswell, J. W., & Creswell, J. D. (2018). Research design: Qualitative, quantitative, and mixed methods approaches (5th ed.). Sage Publications.

Dovetail. (2023, February 5). Semi-structured interview: Explanation, examples, & how-to. https://dovetail.com/research/semi-structured-interview/

Dovetail. (2023, March 7). Narrative analysis in qualitative research: Examples, methods & types. https://dovetail.com/research/narrative-analysis/

Dye, T. (2023, December 12). The primary methods of qualitative data analysis. Thematic. https://getthematic.com/insights/methods-of-qualitative-data-analysis/

Evans, S. (2023, March 9). Small-medium businesses face barriers to technology adoption. https://aibusiness.com/verticals/small-medium-businesses-face-barriers-to-technology-adoption

Febriani, A., Sopha, B. M., & Wibisono, M. A. (2025). Unlocking omnichannel success for small and medium-sized enterprises: A systematic review of technologies, barriers, and enablers. Journal of Industrial Engineering and Management. http://jiem.org/index.php/jiem/article/view/8661

Gulbrandsen, J. (2024, February 23). Strategic partnerships in digital marketing: Collaborations for mutual growth. LinkedIn. https://www.linkedin.com/pulse/strategic-partnerships-digital-marketing-mutual-gulbrandsen-ikm2c

Gupta, A. S. (2025). Artificial intelligence in commerce: A holistic analysis of operational, customer experience, and competitive strategy transformations among SMEs and emerging markets. ResearchGate. https://www.researchgate.net/publication/395911165

Haider, A. R., & Maulan, S. (2025). Digital readiness among Malaysian retail SMEs: A conceptual examination in the post-pandemic context. Advanced International Journal of Business, Entrepreneurship and SMEs. https://www.researchgate.net/publication/393136531

Hoang, J. (2022, December 5). Market positioning for e-commerce business: Benefits and how to. SimiCart Blog. https://www.simicart.com/blog/market-positioning-ecommerce/

Hurst, A. (2023, March 21). Chapter 10: Introduction to data collection techniques. Pressbooks. https://open.oregonstate.education/qualresearchmethods/chapter/chapter-10-introduction-to-data-collection-techniques/

Isharyani, M. E., Sopha, B. M., Wibisono, M. A., & Tjahjono, B. (2023). Retail technology adaptation in traditional retailers: A technology-to-performance chain perspective. Journal of Open Innovation. https://doi.org/10.1016/j.joitmc.2023.100204

Jansen, D. (2023, October 26). Qualitative data coding 101: Everything you need to know. Grad Coach. https://gradcoach.com/qualitative-data-coding-101/

Kozikojoukian, T. (2021). Retail 4.0 and adoption of performance of SMEs in Malaysia. Revista de Management Comparat International, 22(5). https://www.rmci.ase.ro/no22vol5/06.pdf

Lim, M. K., Li, Y., Wang, C., & Tseng, M. (2021). A literature review of blockchain technology applications in supply chains: A comprehensive analysis of themes, methodologies, and industries. Computers & Industrial Engineering, 154, 107133. https://doi.org/10.1016/j.cie.2021.107133

Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. Sage Publications.

Loo, M. K., Ramachandran, S., & Raja Yusof, R. N. (2025). Systematic review of factors and barriers influencing e-commerce adoption among SMEs over the last decade: A TOE framework perspective. Journal of the Knowledge Economy. https://link.springer.com/article/10.1007/s13132-024-02257-5

Mashuri, S., Sarib, M., Alhabsyi, F., & Ruslin, R. (2022). Semi-structured interview: A methodological reflection on the development of a qualitative research instrument in educational studies. ResearchGate. https://www.researchgate.net/publication/358893176

McKinsey & Company. (2022, May 20). The tech transformation imperative in retail. https://www.mckinsey.com/industries/retail/our-insights/the-tech-transformation-imperative-in-retail

Parati. (2023, May 29). Digital adoption in retail industry. Medium. https://parati-in.medium.com/digital-adoption-in-retail-industry-5845058c3789

Patton, M. Q. (2015). Qualitative research & evaluation methods (4th ed.). Sage Publications.

Sakrabani, P., & Teoh, A. P. (2021). Retail 4.0 adoption and firm performance among Malaysian retailers: The role of enterprise risk management as moderator. International Journal of Retail & Distribution Management, 49(3), 359–376. https://doi.org/10.1108/IJRDM-09-2020-0344

Saunders, M., Lewis, P., & Thornhill, A. (2019). Research methods for business students (8th ed.). Pearson Education.

Sleitere. (2023, June 20). The three levels of community marketing for e-commerce. Cevoid. https://cevoid.com/blog/community-marketing-ecommerce

Tajudeen, F. P., Moghavvemi, S., & Thirumoorthi, T. (2025). Digital transformation of Malaysian small and medium enterprises. Springer.

Vasileiou, K., Barnett, J., Thorpe, S. J., & Young, T. (2018). Characterising and justifying sample size sufficiency in interview-based studies: Systematic analysis of qualitative health research over a 15-year period. BMC Medical Research Methodology, 18, Article 148. https://doi.org/10.1186/s12874-018-0594-7

Wham, E. (2023, July 10). Digital technology: The unsung hero of small businesses. Disruptive Competition Project. https://www.project-disco.org/innovation/digital-technology-the-unsung-hero-of-small-businesses/

Yusof, M. S. (2025). Technology adoption in small and medium enterprises and its impact on business growth, innovation, and digital sustainability. ResearchGate. https://www.researchgate.net/publication/397186248

Published

2025-05-31

How to Cite

Mohd Yusri, M. F. F. ., AGani, N. ., & Amborashang, J. (2025). Technology adoption and retail innovation among Malaysian SMEs: A qualitative exploration of digital transformation. Jurnal Evolusi , 6(1), 13–24. https://doi.org/10.61688/jev.v6i1.260