Adoption of the fourth industrial revolution technologies among small and medium enterprises: the mediating role of top management support

Despite the proliferation of the Fourth Industrial Revolution (4IR) in driving global economic growth, adoption rates remain low. Small- and medium-sized enterprises (SMEs), often constrained by limited resources and challenged by complex and disruptive technologies, struggle to keep pace with digital transformation. This study examines the relationships among technological (relative advantage, complexity, cost), organizational (firm size, top management support), and environmental (competitive pressure, government support) factors influencing 4IR technology adoption among Malaysian SMEs in the manufacturing and services sectors. It also investigates the mediating role of top management support (TMS) and profiles SMEs’ strategic archetypes. Data were collected from 182 SMEs through a bilingual online survey and analyzed using Statistical Package for the Social Sciences (SPSS) 28 and SmartPLS 4. All factors, except cost, significantly influenced 4IR technology adoption. Likewise, TMS significantly mediated all relationships except cost. These findings offer valuable insights for policymakers and business leaders to optimize resource allocation and realize financial and economic gains. For SMEs, top management must adopt a visionary role by recognizing the long-term benefits of technology, aligning them with strategic objectives, and mobilizing resources to overcome adoption barriers. Additionally, SMEs should reconceptualize cost as a strategic investment supported by measurable return-on-investment indicators. Given the prevalent perception that cost is a key deterrent, the study’s contrasting findings underscore the need for more targeted and comprehensive government policies that extend beyond broad-based financial assistance. Finally, nearly half of the Malaysian SMEs were classified as Analyzers, representing the ideal strategic archetype for 4IR adoption. Considering SMEs’ resource constraints, government support should prioritize capacity building for top management to enable more firms to adopt the Analyzer strategy, balancing innovation for profitability with operational efficiency.