Malaysia’s Cultural Value Preferences and Industry 4.0 Readiness: A Conceptual Review

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.