Employer's Role Performance Towards Employees' Satisfaction: A Study of SME Industry 4.0 in Malaysia

Employer's Role Performance Towards Employees' Satisfaction: A Study of SME Industry 4.0 in Malaysia

Siti Noorjannah Abd Halim (Universiti Sains Malaysia, Malaysia) and Siti Noorhaslina Abd Halim (Universiti Teknologi MARA, Malaysia)
Copyright: © 2020 |Pages: 15
DOI: 10.4018/978-1-7998-2577-7.ch009


The wave of the Fourth Industrial Revolution (IR4.0) is a phenomenon in which one or more technologies are replaced by another technology in a short amount of time. In small and medium-sized enterprises (SMEs), some internal and external problem are occurring that suggest change from classical to technological approach. Thus, this chapter aims to establish the relationship between the employees' satisfaction toward their employer's role performance. Based on the power-dependence and agency theories, this study contributes to the SMEs industry in Malaysia and will involve IR4.0 by offering a much more comprehensive theoretical perspective to aid understanding and prepare for the revolution internally. The sample of this study comprises of employees who are working in various sectors of the SMEs industry. G-power technique was employed to find the minimum sample size in this study. Meanwhile, the SPSS and PLS will be used to analyse the data. The practical implication of this research concerns the factors that can enhance employee satisfaction if their company jumps into the IR4.0. Thus, the employer should play the right role to make sure the employees are ready and well prepared for the revolution despite there being environmental uncertainty happening in the process.
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2.0 Background Of The Study

This study will look at the challenges and strategies for SMEs towards the IR4.0. In manufacturing companies, changes are most of the time happening drastically both in internal and external environment. This new revolution is characterized by an unknown level of talent and skill mobility, then the employees need to wide their potential to make sure their talent align with current revolution (Harrison, Kelly, Harrison, & Kelly, 2010). This trend makes a major transformation that involved almost every aspect of the business (Ostdick, 2017). The transformation would motivate the SMEs to make a move and keep competitive advantages in their industry field. For instance, employees should play their roles very well in order to help their company toward to IR4.0.

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