Factors that affect the selection of funding option to implement digitalization among SMES

This research paper is to examine the factors that influence the selection of financing options to implement digitization among SMEs in Malaysia. SMEs experience difficulties in implementing digitization in their business with the selection of financing that will be made, whether through internal, external financing or from the government. Digitization in SMEs is something that is not foreign to them and is very important for them to be able to manage management well and smoothly in line with the development of globalization, so now every business has moved to digitization. The primary goal is to examine the variables that impact the financing options chosen by SMEs in Malaysia to implement digitization. Additionally, the study aims to explore the correlation between the independent variable (the implementation of SME digitization) and the dependent variables (financial, technical, and intangible resources). Using a Likert scale to measure the data, the researcher concentrated on the link between the independent and dependent variables. Through the use of an online questionnaire, this study employs a quantitative technique to investigate the opinions of SMEs in Malaysia on adequate funding to enable them to actualize digitization. A total of 384 respondents have taken part in the study. Participant demographic profiles, descriptive analysis, reliability analysis, multiple linear regression, normality testing, and hypothesis testing are among the analyses performed with the Statistical Package for Social Sciences (SPSS). The study's findings indicate that the adoption of digitalization by SMEs is positively and significantly correlated with their financial, technical, and intangible resources. Hypothesis indicates that there is no rejection and that all hypotheses are accepted.