Recent improvements in data storage and processing technologies enables managers to change how they make decisions, relying less on intuition and more on data [1]. Modern technologies do enable the acquisition of better and more data. However, business leaders still tend to focus on technology that can collect and analyse large volumes of data rather than on the outcome of applying the technology [2]. As more and more devices are being inter-connected, the demand for higher data rate is increasing. With the anticipation of decentralized and autonomous systems, [3] there is a need for reliable, fast, and safe network systems[4]. As the number of Internet-of-Thing (IoT) devices is projected to be 28 billion in 2025 [5], the need for new technology becomes eminent.
The fifth generation of mobile communication (5G) is the latest generation of wireless technology. Being the successor of 4G Long Term Evolution (LTE), 5G builds on the continuous wireless innovation with the speed of 1–10 Gbps. 5G is more than just a generational step as it opens up a new world of possibilities for every industry [6]. 5G provides unlimited internet connection at one’s convenience anytime and anywhere, with extremely high speed, high throughput, low-latency, higher reliability and scalability, and energy-efficient mobile communication [7]. 5G technology is capable of supporting several options of connectivity and responding to different use without adding unnecessary complexity and cost [8].
With its low-latency, high data rates and high connection densities, 5G networks support demanding services such as enhanced Mobile Broadband, Ultra-Reliable and Low Latency Communications and massive Machine-Type Communications [9, 10]. With the 5G technology, one can use tools such as UltraHD streaming videos, virtual reality and augmented reality (AR/VR) media, and many more. Communication between IoT devices and relevant industry opens a market for end-users to enhance their business models [11]. 5G technology accelerates businesses by enhancing efficiency and promoting innovations. It allows rapid transmission, collection, and processing of data in large volumes. Consequently, the technology assists businesses in making uninterrupted connections with their clients. This can improve efficiency by increasing the capability to accomplish more in considerably less time. In turn, this can lead to cost reduction and consequently, an increase in revenue.
Small and medium enterprises (SMEs) are businesses that maintain revenues, assets, or a number of employees below a certain threshold. SMEs are the drivers of a country's economic growth, competitiveness, and innovation [12]. According to World Health Organization (WHO), in most countries, SMEs contribute up to 90% of all private sector businesses and over 50% of private sector employment [13]. Even though wireless technologies have remarkable advantages in terms of deployment, installation, maintenance, flexibility, extendibility options [14], wireless technologies for SMEs have traditionally been used for diagnostics and open-loop control applications only [15]. Some SMEs perceive that the digital technologies would disrupt their operations [16]. Some consider technology transfer as an external force that is difficult to predict and beyond their control [17]. This negligence can be due to the lack of budget and inadequate resources and knowledge which hinders investment in technology.
Even though the broad 5G applications are expected to change the business scenery for all sizes of enterprises, SMEs have not paid much attention to 5G technology compared to the large companies. The reason can be that SMEs mostly do not have internet technology (IT) specialists or researchers and due to the lack of financial resources. Some of them have the mind set of wait-and-see, not realising they could lose their competitive advantage. However, the transition to 5G is inevitable and the SMEs must be prepared to move into this big digital transformation or lose out in the competitive market. SMEs can capitalise on 5G as it can increase their ability to transform, be more innovative and have competitive ability with the larger organisation.
Malaysia launched its first 5G technology at the end of 2021, making it one of the first countries in the region to have a 5G ecosystem. The Malaysian Communications and Multimedia Commission (MCMC) regarded 5G technology as one of the economic drivers of businesses including the SMEs. According to the SME Corporation of Malaysia, SMEs represent 97.4% of the total business establishments in Malaysia. With 5G, SMEs would be able to enhance their e-commerce and online entrepreneurship to stay more resilient and competitive in the market. SMEs can utilize this new technology to modernize their business operations, lower the production costs and reap higher revenues.
The aim of this study is to determine the SME employees’ understanding of 5G technology as well as the perceived impact of 5G on productivity, economic benefits, challenges, and intention of adopting 5G technology.