Effect of funding method on digitalization among MSMEs

Micro, Small and Medium-Sized Enterprises (MSMEs) have become a significant emerging business platform in the market for start-up and small entrepreneurs. Considering the globalization era duration and the developments in digital implementation, one avenue that entrepreneurs may use to build their businesses is funding. This study aims to investigate the effect of funding methods on digitalization among Micro, Small and Medium-Sized Enterprises (MSMEs) in Malaysia. Besides that, the Theory of Planned Behaviour (TPB) was implemented in this study. The study will recruit a sample of 384 participants who run micro, small, and medium enterprises. Data will be collected through a Google Form survey which is in a quantitative research approach. The sampling technique used in this research is based on non-probability sampling which is known as convenience sampling. The IBM Statistical Package for the Social Sciences (SPSS) version 26 was used to analyze the data collected. Descriptive, reliability, will be used to analyze the data. The results demonstrated that the independent variables which are attitude, subjective norm, perceived behavioural control, funding structure, and source of funding have as significant on the dependent variable of digitalization among MSMEs. This study also contributes to academic literature with the intention to adopt certain funding for digitalization in Micro, Small and Medium-Sized Enterprises (MSMEs). This study offers suggestions to all aspects of society on how to adopt funding to encourage entrepreneurs to engage in effective digital marketing and grow the business. Also, the study was examined for further implications, limitations, and recommendations.