Impact of Covid-19 Pandemic on SME Digitalization in Taiping, Perak

Abstract

Digitalization refers to using digital technologies such as information, computer, communications, and connectivity technologies to drive the organization. Digitalization is seen as complex, expensive, and pointless. But digitalization does not fundamentally cruel costly gear and adds up to robotization. Therefore, this study is conducted to investigate the relationship between the impact of the Covid-19 pandemic on SMEs’ digitalization that may help SMEs effectively respond to public crises that involve three independent variables (customer behavior, government regulation, cost reach, and resources) with SME digitalization. Stratified sampling is used in data collection through questionnaires made using Google Forms and distributed through social media platforms such as Whatsapp and Facebook Pages. A total of 386 respondents were involved in this study which consists of SME business owners in Taiping, Perak. Reliability tests, normality tests, Spearman correlation analyses, and descriptive analyses were performed using SPSS version 25. The results of this study found that there is a weak and negligible relationship between independent variables and dependent variables.