Advantages and challenges of digital Transformation in Malaysian food and beverage SMEs

Digital transformation is the process of integrating digital technology into every aspect of a business. It has a profound impact on how those firms run and provide value to their clients. When it comes to the digital transformation of supply chain management, especially food and beverages in Malaysia, some companies are still facing challenges of implementing digitalization in their companies, while others are unaware of the advantages of adopting technology to the companies. This study aims at to examine the potential advantages and challenges of the digital transformation on the food and beverages SMEs in Malaysia. Qualitative research methodology has been used in which two case studies have been selected to study objectives of the study. The study applied the Technology-Organization-Environment (TOE) framework, to provide a holistic understanding of the advantages and challenges of digital transformation faced by the food and beverage SMEs. The analysis was organized in accordance with the TOE framework, consisting of three major themes, namely technology, organization, and
environment. In general, the identification of advantages and challenges enabling the food and beverage SMEs in formulating strategies to implement the digital transformation initiatives and overcome the obstacles successfully. The findings have practical implications not only the food and beverage SMEs, but also to the industry associations, policymakers, and digital technology providers.