Conceptual Paper: The Antecedents Influencing Employee Digital Transformation Readiness in Malaysian Small and Medium Enterprises (SMEs)

Digital transformation has emerged as a critical driver of organizational competitiveness and sustainability in the global economy. In Malaysia, small and medium enterprises (SMEs) represent the backbone of the economy, accounting for most business establishments and employment. Despite their significant contributions, SMEs continue to lag larger organizations in digital transformation, raising concerns about their ability to remain competitive in an increasingly digitalized environment. Recognizing that employees are central to the success of transformation initiatives, this study investigates the antecedents influencing employee digital transformation readiness within Malaysian SMEs. Grounded in the Theory of Planned Behavior (TPB), the study examines how attitudes toward behavior, subjective norms, and perceived behavioral control shape employees’ readiness for digital transformation. A quantitative research design is employed, utilizing an online questionnaire distributed across SMEs from different economic sectors in Malaysia. Stratified purposive sampling is adopted to ensure sectoral representation, while data analysis is conducted using Partial Least Squares Structural Equation Modeling (PLS-SEM). To reduce potential bias, anonymity, validated measurement instruments, and pilot testing are employed. Theoretically, the study extends the application of TPB to the context of digital transformation in SMEs, while also acknowledging the importance of other potential influences such as digital literacy, leadership support, and organizational culture. Practically, the findings are expected to provide valuable insights for SME leaders and policymakers in designing targeted strategies, training programs, and policy initiatives that enhance employee readiness for digital transformation. Ultimately, this research emphasizes that digital transformation is not solely a technological challenge but also a human-centered process, where employee readiness plays a decisive role in enabling SMEs to thrive in Malaysia’s digital economy.