Cracking the Code: How Readiness Mediates the Environment-Adoption Relationship in Industry 4.0
Memecahkan Kod: Bagaimana Kesediaan Memediasi Hubungan Persekitaran dan Penerapan dalam Industri 4.0

Faculty of Business and Management
Universiti Teknologi MARA
Cawangan Terengganu Kampus Dungun
Sura Hujung, 23000 Dungun, Terengganu, MALAYSIA.

nurulaziah@uitm.edu.my

Faculty of Business, Economics and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu, MALAYSIA.

nikhazimah@umt.edu.my

Faculty of Business, Economics and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu, MALAYSIA.

wannor@umt.edu.my

Faculty of Business, Economics and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu, MALAYSIA.

khatijah@umt.edu.my

Faculty of Business, Economics and Social Development
Universiti Malaysia Terengganu
21030 Kuala Nerus, Terengganu, MALAYSIA.

sujanashafi006@gmail.com

Abstract

Industry 4.0 represents a transformative trend in the industrial sector, offering significant opportunities for improving business operations and achieving sustainability. However, small and medium-sized enterprises (SMEs) often encounter challenges in adopting these advanced technologies, underscoring the need to assess their Industry 4.0 readiness. This study explores the interplay of environmental factors and Industry 4.0 adoption, with a focus on the mediating role of Industry 4.0 readiness. A survey was administered to 157 managerial employees of Malaysian manufacturing SMEs using a quantitative methodology. Partial least squares structural equation modelling (PLS-SEM) was used to analyse the data. It was found that Industry 4.0 readiness served as a crucial mediator and environmental factors significantly and favourably influenced the adoption of Industry 4.0. These findings emphasise the importance of external environmental influences in driving technological adoption while highlighting the necessity for SMEs to develop readiness strategies to maximise the benefits of Industry 4.0. This study contributes to the understanding of Industry 4.0 integration in SMEs, offering practical insights for policymakers and business leaders to foster technological readiness and enhance competitive advantage.

Keywords

environmental factors; industry 4.0; industry 4.0 readiness; SMEs; technology adoption
https://doi.org/10.17576/pengurusan-2026-76-9

Citation

Ismail, S. N. A., Nik Mat, N. H., Mohamed, W. N., Omar, K., & Shafi, S. (2026). Cracking the Code: How Readiness Mediates the Environment-Adoption Relationship in Industry 4.0. Jurnal Pengurusan, 76, 133–147. https://doi.org/10.17576/pengurusan-2026-76-9

@article{ismail2026cracking,
  title={Cracking the Code: How Readiness Mediates the Environment-Adoption Relationship in Industry 4.0},
  author={Ismail, Siti Nurul Aziah and Nik Mat, Nik Hazimah and Mohamed, Wan Norhayati and Omar, Khatijah and Shafi, Sujana},
  journal={Jurnal Pengurusan},
 

volume={76},
  number={},
  pages={133—147},
  year={2026},
  doi={https://doi.org/10.17576/pengurusan-2026-76-9},
  publisher={Penerbit UKM},
}

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76 (2026) 133 – 147

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