INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025  
Malaysia’s Cultural Value Preferences and Industry 4.0 Readiness: A  
Conceptual Review  
Nasri Semiun., Ihwan Ghazali., Tia Tanjung., Effendi Mohamad  
Faculty of Industrial and Manufacturing, Technology and Engineering  
DOI: https://dx.doi.org/10.47772/IJRISS.2025.910000614  
Received: 28 October 2025; Accepted: 04 November 2025; Published: 19 November 2025  
ABSTRACT  
Industry 4.0 represents a transformative stage in global industrial development characterized by digitalization,  
automation, cyber-physical systems, and data-driven production. While Malaysia continues to implement  
Industry 4.0 strategies through initiatives such as the Industry4WRD policy, the nation’s readiness is influenced  
not only by technological and infrastructural factors but also by deeply rooted cultural values. This paper presents  
a conceptual review exploring how Malaysia’s cultural value preferences influence its readiness for Industry 4.0  
transformation, particularly within the manufacturing sector. Drawing from Hofstede’s and Schwartz’s cultural  
frameworks, the paper discusses how collectivism, high power distance, harmony, and long-term orientation  
shape managerial practices, innovation adoption, communication, and leadership in Malaysian industrial  
contexts. The study highlights the dual nature of cultural traits acting both as enablers and inhibitors of  
technological transformation. By integrating cultural considerations into the assessment of Industry 4.0  
readiness, this paper proposes a culturally contextualized understanding of industrial transformation in Malaysia.  
It concludes by suggesting future directions for research and policy to align digitalization efforts with Malaysia’s  
socio-cultural realities.  
Keywords: Malaysia, cultural values, Industry 4.0 readiness, manufacturing sector, collectivism, organizational  
behavior, technological transformation  
INTRODUCTION  
Background and Context  
The advent of Industry 4.0 (INDUSTRY 4.0) represents a pivotal phase in the evolution of global manufacturing,  
marked by the seamless convergence of advanced digital technologies such as the Internet of Things (IoT), cyber-  
physical systems, artificial intelligence (AI), robotics, and data analytics. This wave of technological  
transformation has not only redefined the notions of industrial efficiency and innovation but has also reshaped  
global competitiveness, influencing both developed and developing economies alike.  
In the Malaysian context, the manufacturing sector remains a cornerstone of economic growth, contributing  
approximately 22–25% to the nation’s Gross Domestic Product (GDP) and serving as a major source of  
employment (Department of Statistics Malaysia, 2022). Recognizing its strategic importance, Malaysia has  
prioritized the adoption and integration of Industry 4.0 principles as a key driver of national development. This  
commitment is exemplified in the Industry4WRD: National Policy on Industry 4.0, introduced by the Ministry  
of International Trade and Industry (MITI) in 2018, which aims to strengthen the nation’s industrial capabilities  
and ensure sustainable growth in an increasingly digitalized global economy.  
The adoption of Industry 4.0 technologies is not confined to the realm of infrastructure development or financial  
investment alone. Rather, it represents a comprehensive transformation that requires organizations to adapt  
structurally, enhance human capital competencies, and cultivate forward-thinking leadership. Equally important  
is the alignment of these efforts with the underlying cultural values that shape organizational behavior. Culture  
fundamentally influences how individuals and institutions interpret, respond to, and participate in technological  
advancements (Taras et al., 2010). In Malaysia’s multicultural and collectivist environment, cultural values  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025  
significantly shape workplace interactions, managerial decisions, innovation practices, and employee motivation  
factors that collectively determine the effectiveness and sustainability of Industry 4.0 implementation.  
While many scholars have explored Malaysia’s technological and economic preparedness for Industry 4.0 (Sony  
& Naik, 2020; Ismail et al., 2021), considerably less attention has been given to the cultural dimension of this  
readiness. This oversight is significant, as cultural value preferences play a pivotal role in shaping how societies  
engage with technological change. For example, Malaysia’s cultural tendencies such as a strong respect for  
hierarchical structures (power distance) and a collective emphasis on social harmony (collectivism) can  
profoundly influence how new technologies are introduced, accepted, and applied within industrial  
environments. Therefore, incorporating cultural values into the Industry 4.0 readiness framework is essential to  
ensure that digital transformation efforts are not only technologically sound but also socially sustainable and  
contextually relevant to the Malaysian setting.  
Problem Statement  
Although Malaysia has made considerable progress in advancing the digital transformation of its manufacturing  
sector, the outcomes of these initiatives remain inconsistent across different organizational scales. According to  
the Ministry of Investment, Trade and Industry (MITI, 2021), large manufacturing firms generally exhibit a high  
degree of automation and digital technology adoption. In contrast, small and medium-sized enterprises (SMEs)  
which constitute more than 90% of Malaysia’s manufacturing landscape-tend to experience slower rates of  
digital integration. This disparity is often attributed to a combination of human resource limitations, financial  
constraints, and cultural factors that hinder the effective implementation of digital technologies within smaller  
enterprises.  
Contemporary assessments of Industry 4.0 readiness predominantly emphasize technological capacities,  
infrastructural development, and supportive policy frameworks. Nevertheless, the dimension of cultural  
readiness which encompasses societal values, organizational norms, and behavioral patterns that influence  
technological acceptance, and adaptation remains relatively underexplored (Sony, 2020). In contexts  
characterized by strong hierarchical structures, for instance, decision making processes often remain centralized,  
thereby constraining opportunities for innovation and collaborative problem-solving. Conversely, collectivist  
cultural orientations may promote cohesion and teamwork but can also discourage open dissent or individual  
experimentation, both of which are critical drivers of creativity and technological advancement. Therefore,  
incorporating cultural perspectives into Industry 4.0 readiness assessments is crucial for developing a more  
comprehensive and context-sensitive understanding of Malaysia’s capacity for industrial transformation.  
Research Ojectives  
This paper aims to:  
1. Examine Malaysia’s dominant cultural value preferences using established cultural models.  
2. Explore the relationship between these cultural values and organizational behaviors relevant to Industry 4.0  
readiness.  
3. Develop a conceptual framework linking cultural value dimensions with Industry 4.0 readiness factors.  
4. Offer recommendations for culturally aligned industrial policies and managerial strategies.  
Significance of the study  
This study contributes meaningfully to both academic inquiry and practical application by underscoring the  
importance of cultural contextualization in assessing Industry 4.0 readiness. From an academic perspective, it  
bridges the domains of cross-cultural management and industrial transformation, presenting a sociotechnical  
framework through which industrial modernization can be more holistically understood. On a practical level, the  
study offers valuable guidance for policymakers, industry practitioners, and educators in formulating strategies  
that harmonize digital transformation initiatives with the unique characteristics of Malaysian work culture. Such  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025  
alignment is essential to foster sustainable growth, enhance workforce adaptability, and cultivate effective  
leadership within the evolving landscape of Industry 4.0.  
LITERATURE REVIEW  
Literature Search and Review Strategy  
To ensure academic rigor and transparency, this study adopted a systematic literature review approach to identify,  
evaluate, and synthesize existing research related to cultural values, Industry 4.0 readiness, and sustainability  
within the Malaysian context. The review followed structured procedures consistent with academic guidelines  
for systematic reviews. Relevant literature was retrieved from reputable databases, including Scopus, Web of  
Science, and ScienceDirect, covering the publication period from 2014 to 2025. A combination of targeted  
keywords—such as “Industry 4.0 readiness,” “cultural values,” “organizational behaviour,” “Malaysia,” and  
“sustainability”—was used to ensure comprehensive coverage of the topic. The selection process involved  
screening abstracts and full texts based on relevance, recency, and methodological quality. The final pool of  
studies was subjected to thematic analysis to identify key patterns, conceptual relationships, and research gaps.  
Insights derived from this process guided the construction of the conceptual framework and ensured that the  
review was both comprehensive and aligned with the study’s objectives.  
Sub-Cultural Variations in the Malaysian Workforce  
Previous studies have often characterized Malaysia’s cultural profile using Hofstede’s national dimensions,  
portraying it as a society with high power distance, collectivism, and moderate long-term orientation. While such  
generalizations help establish a national cultural baseline, they may overlook the multicultural nature of  
Malaysia’s workforce. The country’s organizational settings are composed of multiple ethnic groups—primarily  
Malay, Chinese, and Indian—each embodying distinct cultural orientations that can shape attitudes toward  
technology and innovation.  
Recognizing this, it is important to note that Malaysian culture is not monolithic. Malay employees typically  
emphasize collectivism, harmony, and mutual respect, which foster teamwork and social cohesion but may also  
encourage cautious decision-making. Chinese employees, on the other hand, often exhibit pragmatism,  
competitiveness, and achievement orientation, aligning with goal-driven and efficiency-based work values.  
Indian employees tend to value hierarchical stability and interpersonal respect, which support structured  
organizational communication and authority recognition.  
These sub-cultural variations suggest that Industry 4.0 readiness within Malaysian organizations cannot be fully  
understood through a single national cultural lens. Instead, responses to digital transformation initiatives may  
differ across subgroups, influenced by underlying cultural beliefs and work ethics. Understanding these internal  
cultural dynamics provides a more nuanced perspective on how organizations interpret and implement Industry  
4.0 practices.  
By acknowledging the diverse cultural fabric of Malaysia’s workforce, this study strengthens the contextual  
validity of its conceptual framework and aligns with the broader understanding that cultural diversity can both  
facilitate and challenge organizational transformation in the era of digital industrialization.  
The Role of Culture in Industrial and Organizational Contexts  
Culture can be understood as the collective pattern of thinking, feeling, and behaving that differentiates one  
group or society from another (Hofstede, 1980). It represents the shared system of values, beliefs, norms, and  
expectations that shape how individuals interact and make sense of their social and organizational environments.  
Within industrial organizations, culture plays a pivotal role in shaping decision-making practices, communication  
dynamics, leadership styles, approaches to innovation, and the overall level of employee motivation and  
engagement (House et al., 2004; Schein, 2010).  
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National culture plays a crucial role in shaping how organizations respond to change and technological  
advancement. Cultural characteristics influence collective attitudes toward risk, authority, and innovation. For  
instance, societies with low uncertainty avoidance tend to exhibit greater openness to experimentation and  
creativity, fostering an environment where innovation can thrive. Conversely, cultures with high uncertainty  
avoidance often prioritize stability, predictability, and gradual improvement over radical transformation  
(Hofstede, 2011). Likewise, in cultures characterized by high power distance, decision-making authority is  
typically concentrated among senior leaders, which can slow the pace of technological adoption and  
organizational change. Recognizing and understanding these cultural dynamics enables organizations to develop  
transformation strategies that not only align with societal norms and expectations but also create pathways for  
sustainable and culturally sensitive innovation.  
Cultural Frameworks: Hofstede and Schwartz  
Hofstede’s Cultural Dimensions  
Geert Hofstede’s (1980, 2001) model remains one of the most influential frameworks for understanding national  
culture. His six dimensions—power distance, individualism vs. collectivism, masculinity vs. femininity,  
uncertainty avoidance, long-term orientation, and indulgence vs. restraint—offer insights into how societies  
differ in workplace behavior and management preferences.  
Malaysia’s cultural profile, according to Hofstede Insights (2023), is characterized by high power distance, low  
individualism (collectivist orientation), moderate masculinity, moderate-to-high uncertainty avoidance, and high  
long-term orientation. Table I summarizes these orientations.  
Table I Malaysia’s Cultural Profile Based on Hofstede’s Dimensions  
Dimension  
Malaysian Orientation  
Implications for Industry 4.0 Readiness  
Acceptance  
structures; subordinates defer to bottlenecks in innovation and feedback  
authority loops  
of  
hierarchical Centralized decision-making; potential  
Power Distance (High)  
Collective responsibility and loyalty Strong teamwork but limited individual  
initiative  
Individualism (Low)  
Preference for cooperation over Stable work relations; slower innovation  
Masculinity (Moderate)  
competition  
dynamics  
Preference for structure and rules  
Limited risk-taking; resistance to rapid  
technological change  
Uncertainty Avoidance  
(Moderate–High)  
Focus on perseverance and strategic Support  
for  
gradual,  
sustainable  
Long-Term Orientation  
(High)  
patience  
transformation  
Emphasis on self-control and Compliance with organizational policies;  
conformity less flexibility  
Indulgence (Low)  
Schwartz’s Value Framework  
Schwartz (1999) expanded on Hofstede by identifying universal value dimensions grouped into three cultural  
orientations: Embeddedness vs. Autonomy, Hierarchy vs. Egalitarianism, and Mastery vs. Harmony. Within the  
Malaysian context, Schwartz’s framework provides deeper insights into the motivational structures underlying  
work behavior.  
Embeddedness: Individuals view themselves as part of a collective; social order and tradition are valued.  
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Hierarchy: Unequal power relations are accepted as legitimate, reinforcing authority structures.  
Harmony: Emphasis is placed on maintaining balance with others and the environment.  
In Malaysian manufacturing culture, harmony and hierarchy are particularly salient, fostering workplace  
cohesion but sometimes limiting assertive innovation or constructive dissent. These cultural orientations strongly  
shape how employees interact with digital technologies and respond to organizational change.  
Malaysia’s Cultural Values in the Manufacturing Sector  
The manufacturing industry in Malaysia embodies one of the nation’s most culturally diverse professional  
landscapes, comprising a workforce of Malays, Chinese, Indians, and foreign employees. This multicultural  
composition has given rise to a hybrid organizational culture that harmonizes traditional Asian values of  
collectivism, respect for hierarchy, and community-oriented cooperation with contemporary managerial practices  
emphasizing efficiency, innovation, and performance.  
Scholarly investigations have highlighted several defining cultural attributes within Malaysia’s manufacturing  
workforce, reflecting how deeply rooted social values interact with industrial and technological demands. These  
characteristics shape communication patterns, leadership styles, decision-making processes, and readiness to  
adapt to emerging industrial transformations such as Industry 4.0.  
1. Respect for authority and seniority: Managers are viewed as decision-makers, and subordinates rarely  
challenge directives (Ahmad & Schroeder, 2003).  
2. Preference for teamwork and consensus: Decisions often require group agreement, even if this slows processes  
(Lim, 2012).  
3. Avoidance of open conflict: Communication tends to be indirect to preserve harmony (Abdullah, 1996).  
4. Commitment to stability and loyalty: Long-term employment and gradual career progression are preferred  
over frequent job changes (Mahidin et al., 2020).  
These values contribute to workplace harmony and consistent productivity but can create resistance to disruptive  
technologies and rapid innovation cycles associated with Industry 4.0.  
Linking Cultural Values and Industry 4.0 Readiness  
The relationship between cultural values and technological readiness can be understood through the lens of socio-  
technical theory, which suggests that organizational effectiveness arises from the harmonious alignment between  
social and technical subsystems (Trist & Bamforth, 1951). Within the Malaysian context, cultural characteristics  
play a pivotal role in shaping the social subsystem that interacts with emerging technological innovations.  
For example, a high power distance orientation often results in top-down implementation of technology, where  
decision-making authority is centralized and employee feedback is limited. Collectivist values, while fostering  
teamwork and a strong sense of group cohesion, may inadvertently discourage individual initiative and  
autonomous problem-solving. Similarly, the cultural emphasis on harmony and social balance supports stable  
collaboration but can constrain open dialogue about technological shortcomings or failures. Meanwhile, a long-  
term orientation encourages steady and sustainable digital transformation, favoring gradual progress over  
disruptive change.  
Collectively, these cultural attributes form a distinct readiness profile for Malaysia—one characterized by strong  
organizational loyalty, cooperation, and stability, yet tempered by limited agility and slower innovation cycles.  
Recognizing and understanding these dynamics allows policymakers, educators, and industry leaders to design  
culturally responsive strategies that honor Malaysia’s social values while enhancing adaptability and  
technological advancement.  
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CONCEPTUAL DISCUSSION  
Cultural Dimensions Shaping Industry 4.0 Readiness  
Culture operates as an invisible but powerful system of meaning that defines how individuals interact with  
technology, authority, and innovation (Schein, 2010). In the context of Industry 4.0, cultural dimensions  
influence the human, organizational, and strategic aspects of readiness. Malaysia’s dominant cultural values—  
high power distance, collectivism, harmony, and long-term orientation—play significant roles in shaping these  
dynamics.  
Power Distance and Leadership Structure  
High power distance in Malaysia indicates an acceptance of hierarchical order and centralized authority  
(Hofstede, 2011). Within manufacturing organizations, this manifests in clearly defined reporting structures and  
top-down decision-making. Leaders are expected to provide direction, make key decisions, and maintain control.  
While this structure ensures stability and clarity, it also reduces flexibility and innovation speed, particularly in  
digital transformation efforts that require decentralized, cross-functional collaboration (Sony, 2020).  
Industry 4.0 emphasizes autonomy, data transparency, and agile decision-making. When employees are reluctant  
to challenge authority or propose alternative ideas, innovation may stagnate. However, hierarchical respect can  
be leveraged positively if leaders adopt transformational leadership styles—using authority to empower  
subordinates rather than control them. This approach maintains cultural harmony while promoting engagement  
in technological innovation.  
Collectivism and Team Cohesian  
Collectivism, another defining trait of Malaysian culture, fosters strong group cohesion, cooperation, and loyalty  
(Abdullah, 1996). In the manufacturing sector, these traits enhance teamwork and reduce interpersonal conflict—  
essential for production stability. However, collectivism may also inhibit individual initiative, especially in  
innovation-driven contexts where experimentation and independent thinking are vital.  
Industry 4.0 thrives on cross-disciplinary collaboration, continuous learning, and creative problem-solving.  
Therefore, balancing collectivist harmony with a culture of constructive dialogue is essential. Leaders must  
cultivate psychological safety—allowing employees to share new ideas without fear of disrupting social  
harmony (Edmondson, 1999). This balance can help organizations harness collective strength while nurturing  
innovative behavior.  
Harmony and Communication Patterns  
In Malaysia’s culturally diverse manufacturing environment, maintaining harmony is a social expectation.  
Employees tend to avoid open disagreement or criticism, preferring indirect communication to preserve  
relationships (Abdullah, 2001). While this promotes a peaceful work atmosphere, it can create communication  
gaps, especially during Industry 4.0 transitions that demand open feedback, rapid problem-solving, and  
transparent reporting.  
To address this, organizations can implement structured communication channels—such as anonymous feedback  
systems or cross-functional meetings moderated by neutral facilitators. These mechanisms preserve harmony  
while enabling honest discussion about technological challenges and innovation bottlenecks.  
Long-Term Orientation and Incremental Change  
Malaysia’s high long-term orientation supports perseverance, adaptability, and continuous improvement  
(Hofstede Insights, 2023). This orientation aligns with sustainable transformation rather than abrupt change.  
Industry 4.0 implementation often requires gradual skill development and infrastructure adaptation—an  
approach consistent with Malaysia’s cultural tendency toward steady progress.  
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This value can thus be a cultural enabler for Industry 4.0 readiness, provided organizations maintain consistent  
strategic vision. However, long-term orientation may also lead to risk aversion, as organizations favor proven  
methods over disruptive innovations. Balancing stability with calculated risk-taking becomes essential for  
achieving meaningful digital transformation.  
Cultural Influence on Organizational Behaviour  
Organizational behavior (OB) reflects how individuals and groups act within an organization, influenced by  
internal structures, leadership styles, and external environments (Robbins & Judge, 2021). In Malaysia, OB is  
strongly influenced by cultural values that shape attitudes toward authority, teamwork, conflict, and innovation.  
Leadership and Decision Making  
Malaysian leadership tends to follow a paternalistic model—leaders are expected to guide, protect, and mentor  
employees, who reciprocate with loyalty and respect (Abdullah, 1996). This fosters trust and organizational  
stability but can discourage open debate or bottom-up innovation.  
In an Industry 4.0 environment, leaders must evolve into transformational or participative leaders—encouraging  
creativity while maintaining cultural respect. Managers who integrate cultural empathy with digital awareness  
can mobilize teams more effectively during technological transitions.  
Communication and Knowledge Sharing  
Collectivist and harmony-oriented cultures rely heavily on indirect communication. Employees may hesitate to  
share mistakes or propose unconventional ideas for fear of disrupting social balance. This tendency can slow  
organizational learning—an essential component of Industry 4.0 readiness (Sony, 2020).  
To counter this, managers should establish safe learning environments, where sharing failures is viewed as a  
learning opportunity. Knowledge management systems that reward collaboration and innovation can help embed  
a more open communication culture while retaining collective harmony.  
Innovation Culture and Risk Attitudes  
Innovation in Industry 4.0 depends on experimentation and tolerance for failure. Malaysia’s moderate-to-high  
uncertainty avoidance means that employees prefer structured environments and predictable outcomes  
(Hofstede, 2011). Consequently, organizations may resist adopting untested technologies or disruptive ideas.  
Encouraging small-scale pilot projects, supported by leadership endorsement, can help mitigate perceived risks  
while demonstrating tangible benefits. Gradual success builds confidence in innovation and aligns with  
Malaysia’s long-term orientation.  
Conceptual Framework  
Based on the preceding discussion, a conceptual framework is proposed (Figure I) to illustrate how Malaysian  
cultural dimensions interact with key Industry 4.0 readiness factors.  
Figure I. Conceptual Framework Linking Cultural Values to Industry 4.0 Readiness  
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Figure 1 illustrates the proposed conceptual framework that links Malaysian cultural values with Industry 4.0  
readiness through the mediating effects of organizational behaviour and leadership style. The framework  
positions cultural value dimensions Power Distance, Collectivism, Harmony, and Long-Term Orientation as the  
independent variables that shape how organizations respond to digital transformation initiatives within the  
Malaysian context.  
Power Distance reflects the acceptance of hierarchical authority, influencing communication flow and decision-  
making processes. Collectivism emphasizes teamwork and group loyalty, encouraging collaboration in  
technological adoption. Harmony promotes social stability and conflict avoidance, fostering a balanced  
environment for gradual change. Long-Term Orientation represents strategic foresight and perseverance,  
supporting sustained investment and innovation in Industry 4.0 initiatives.  
The mediating variables, namely Organizational Behaviour and Leadership Style, explain how cultural values  
are translated into internal practices that influence readiness. Organizational behaviour reflects collective  
attitudes and adaptability toward technological change, while leadership style shapes motivation, direction, and  
cultural alignment within the organization. Together, they serve as conduits through which culture impacts  
readiness outcomes.  
The dependent variable, Industry 4.0 Readiness, is categorized into three dimensions: Human Readiness (digital  
competence and adaptability), Process Readiness (digital integration and workflow optimization), and  
Technology Readiness (infrastructure and innovation capacity).  
Overall, the framework suggests that cultural values influence Industry 4.0 readiness both directly and indirectly  
through organizational and leadership factors. This integrated model underscores that technological progress in  
Malaysia is deeply intertwined with cultural context, emphasizing the need for culturally aligned strategies to  
enhance Industry 4.0 adoption and sustainability.  
This conceptual model suggests that cultural dimensions indirectly influence Industry 4.0 readiness through  
organizational behavior and leadership. For example, collectivism affects teamwork and communication, which  
in turn determine how effectively digital initiatives are implemented. Similarly, power distance affects decision  
making speed and the degree of innovation autonomy.  
The framework implies that effective readiness requires cultural alignment not cultural replacement. Industry  
4.0 initiatives must adapt to Malaysia’s cultural realities, integrating digital transformation within accepted social  
norms.  
Opportunities and Challenges  
Cultural Strengths Supporting Industry 4.0 Readiness  
Malaysia’s collectivist orientation and long-term focus create a strong foundation for cohesive, sustainable  
transformation. Team-oriented work culture ensures stable collaboration, while loyalty promotes workforce  
retention a vital factor in sustaining digital skill development (Mahidin et al., 2020).  
Moreover, Malaysia’s emphasis on harmony supports social sustainability in industrial environments, aligning  
with Industry 5.0’s emerging focus on human-centered innovation. These cultural traits can be leveraged to  
ensure that technological advancement coexists with social cohesion.  
Cultural Barriers to Technological Transformation  
However, high power distance and uncertainty avoidance can impede innovation speed and agility. Overly  
centralized structures slow decision-making, while fear of mistakes discourages experimentation. Additionally,  
harmony-oriented communication can obscure problems that require immediate attention.  
Addressing these barriers requires leadership and policy interventions that encourage trust, inclusivity, and  
participatory management while respecting traditional authority structures. Leadership development programs  
emphasizing digital literacy and cultural intelligence can bridge this gap.  
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Implication  
A. Theoretical Implication  
This conceptual review contributes to industrial and cultural management theory in several ways:  
1. Integrating Cultural and Technological Readiness Frameworks  
The study bridges the gap between cross-cultural management and Industry 4.0 readiness models by positioning  
culture as an integral dimension of technological preparedness. This expands Schumacher et al.’s (2016)  
readiness framework to include cultural readiness as a key determinant.  
2. Socio-Technical Systems Perspective  
By applying socio-technical theory (Trist & Bamforth, 1951), this paper emphasizes that successful digital  
transformation requires alignment between technological systems and cultural norms. Ignoring cultural context  
may result in technological underutilization or employee disengagement.  
3. Human-Centric Industrial Transformation  
The discussion anticipates Industry 5.0 principles, which advocate human-centric and value-driven technological  
progress. Incorporating cultural values aligns with sustainability-oriented industrial theories that balance  
economic and social goals.  
Managerial Impliations  
From a practical standpoint, understanding cultural influences on Industry 4.0 readiness provides several  
actionable insights:  
1. Leadership Development  
Leaders must evolve from directive supervisors to facilitative mentors. Training programs should focus on  
developing transformational and participative leadership styles that respect hierarchy but encourage employee  
input. Managers should communicate the long-term benefits of digital adoption to align with Malaysia’s future-  
oriented mindset.  
2. Human Capital and Training  
Cultural sensitivity should be embedded in workforce development. For example, training sessions that use  
group-based learning rather than individual competition align with collectivist preferences. Mentorship  
programs led by respected senior staff can enhance acceptance of new technologies among junior workers.  
3. Organizational Communication  
Organizations should implement formalized, multi-level feedback systems to overcome indirect communication  
barriers. Encouraging “respectful disagreement” can help identify operational challenges early, improving agility  
in technological implementation.  
4. Policy and Governance  
National industrial policies should integrate cultural diagnostics into readiness assessments. Policymakers can  
design incentive schemes that promote inclusive decision-making and reward innovation at all organizational  
levels, bridging cultural and technical divides.  
Policy Implications for Malaysia’s Industrial Strategy  
Malaysia’s Industry4WRD policy emphasizes technology, infrastructure, and skills but underplays socio-cultural  
readiness. Incorporating cultural considerations into policy design would improve implementation effectiveness.  
For instance:  
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Cultural readiness indicators can be added to national readiness audits.  
Cross-cultural management modules can be introduced in industrial training centres.  
Collaborative innovation networks can be structured to reflect Malaysia’s collectivist values while  
promoting inter-firm learning.  
Such measures will align national industrial strategies with the country’s socio-cultural realities, ensuring that  
technological progress remains inclusive and sustainable.  
Future Research Directions  
Given that this paper is conceptual, empirical validation is essential to strengthen its propositions. Future  
research could:  
1. Conduct quantitative studies assessing correlations between cultural dimensions and Industry 4.0 readiness  
indicators (e.g., innovation capability, adoption rate).  
2. Perform qualitative case studies in Malaysian manufacturing firms to explore how cultural values manifest  
in digital transformation projects.  
3. Compare cultural readiness across ASEAN nations to identify regional patterns and potential collaboration  
opportunities.  
4. Investigate generational differences, as younger employees may exhibit evolving cultural orientations that  
affect Industry 4.0 adoption behaviours.  
By extending research in these areas, scholars can contribute to a more nuanced, culturally grounded  
understanding of technological readiness in emerging economies.  
CONCLUSION  
This conceptual review highlights that Malaysia’s readiness for Industry 4.0 is not solely determined by  
technological capacity but also by its cultural value system. Cultural traits such as high power distance,  
collectivism, harmony, and long-term orientation shape organizational behavior, leadership, and innovation  
practices in the manufacturing sector.  
While these traits foster social stability, cooperation, and loyalty valuable for long-term transformation they may  
simultaneously constrain agility and innovation if not managed appropriately. Therefore, achieving Industry 4.0  
readiness in Malaysia requires cultural alignment strategies that integrate traditional values with modern  
technological imperatives.  
Leaders and policymakers must view cultural readiness as a strategic asset rather than a constraint. By harnessing  
Malaysia’s cultural strengths teamwork, patience, and social cohesion while addressing hierarchical and  
communication barriers, the nation can cultivate a uniquely Malaysian model of Industry 4.0 transformation that  
is technologically advanced, culturally grounded, and socially sustainable.  
ACKNOWLEDGMENT  
The authors would like to thank Ministry of Higher Education (MOHE) of Malaysia through the Fundamental  
Research Grant Scheme (FRGS), No: FRGS/1/2023/SS02/UTEM/02/2. The Authors would like to thank  
Universiti Teknikal Malaysia Melaka (UTeM) for this research paper.  
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INTERNATIONAL JOURNAL OF RESEARCH AND INNOVATION IN SOCIAL SCIENCE (IJRISS)  
ISSN No. 2454-6186 | DOI: 10.47772/IJRISS | Volume IX Issue X October 2025  
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