Muhammad Faizal Samat, Yosep Hernawan, Mohd Nor Hakimin Yusoff, Norazlan Anual, Yasmin Kamall Khan
Small and medium enterprises (SMEs) are pivotal to Malaysia's economic growth, yet their performance, particularly in less-developed regions, requires further understanding. While the Technology, Organization, and Environment (TOE) framework has been widely applied, its examination within the unique socio-economic context of Malaysia's East Coast states remains scarce. This study fills this gap by investigating the impact of technological, organizational, and environmental support on SME performance in this distinct region, as it is strategically essential for Malaysia's inclusive digital growth. In an era defined by Industrial Revolution 4.0 (IR4.0) and post-pandemic recovery, identifying the key drivers for these SMEs is critical. A quantitative survey of 339 SME owners was analyzed using Partial Least Squares Structural Equation Modelling (SEM-PLS). The findings reveal that technological support and government support significantly enhance SME performance. Conversely, organizational support was found to have no statistically significant relationship. This study's novel contribution lies in its targeted regional focus, providing evidence that for East Coast SMEs, external enablers (technology and government policy) are more impactful than internal organizational factors. Consequently, this paper offers recommendations to SMEs to prioritize strategic investments in IR4.0-relevant technologies such as cloud computing, digital marketing, and data analytics, while policymakers should tailor and intensify support programs such as grants, digital training, and streamlined regulatory assistance specifically for the developmental needs of SMEs in this region to foster inclusive national economic growth. © 2026, IPMEDIA SDN BHD. All rights reserved.
Faculty of Business and Management, Universiti Teknologi MARA Cawangan Selangor, Malaysia; Faculty of Economics and Business Education, Universitas Pendidikan Indonesia, Indonesia; Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Malaysia; Faculty of Business and Management, Universiti Teknologi MARA Cawangan Melaka, Malaysia
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