Asian Journal of Empirical Research

Digitalization and SME competitiveness in Sabah: A PLS-SEM analysis of infrastructure, implementation, and human capital

Zainuddin Sabu — 2025-07-21

This study investigates the factors influencing the competitiveness of small and medium-sized enterprises (SMEs) in Sabah, focusing on the roles of human resources, infrastructure, and implementation. Addressing these issues is crucial to facilitate digital transformation among SMEs in Sabah and promote more inclusive economic development. Using a quantitative approach and Partial Least Squares Structural Equation Modeling (PLS-SEM), data were collected from SMEs across various districts in Sabah. The findings reveal that both infrastructure and implementation have significant and positive effects on competitiveness, supporting established theories that emphasize the importance of tangible assets and strategic execution in enhancing firm performance. However, contrary to much of the existing literature, human resources demonstrated a significant but negative relationship with competitiveness. This suggests that within the Sabah context, challenges such as limited skills, insufficient training, or misaligned HR strategies may be hindering SMEs' ability to leverage human capital effectively. The study contributes to the literature by offering context-specific insights into SME development in a geographically and economically diverse region, and it highlights the need for more targeted policies to strengthen human resource capabilities to support sustainable competitiveness.

Does financial inclusion gender gap persist in the digital world?

Afroza Sultana — 2025-07-25

This study examines whether digitalization effectively reduces the gender gap in financial inclusion across 37 low- and lower-middle-income countries between 2011 and 2021. Using Ordinary Least Squares (OLS) panel regression and a control function approach to check for endogeneity, the study explores the impact of digital variables, such as internet usage, digital payments, and a technology and innovation index, on the gender gap in account ownership, saving, and borrowing from formal financial institutions. Findings reveal that digitalization has a mixed impact. Internet usage significantly reduces the gender gap in saving, suggesting that increased connectivity can improve women's ability to save. However, digital payments are associated with a wider saving gap, possibly reflecting unequal access or use among women. Digital variables were not statistically significant for account ownership and borrowing, indicating that structural barriers, such as socio-cultural norms, continue to limit women’s access to financial services. These results suggest that while digital infrastructure and access are essential, they are not sufficient on their own to achieve financial inclusion. The study emphasizes the necessity of comprehensive structural reforms, including the strengthening of women’s legal rights, the enhancement of financial regulations, the development of inclusive financial products tailored to women’s needs, the improvement of digital literacy, and the addressing of socio-cultural barriers, to ensure equitable and meaningful access to financial services for women.

The influence of digital branding strategies on consumer engagement: Evidence from Malaysia’s retail sector

Masri Bin Abdul Lasi — 2025-08-15

Digital branding has become a cornerstone of consumer engagement strategies in the modern retail landscape. In Malaysia’s rapidly evolving retail sector, brands are increasingly adopting digital tools to connect with consumers, influence perceptions, and foster brand relationships. This study investigates the impact of digital branding components brand visibility, interactivity, content value, and consistency on consumer engagement across online retail platforms. Drawing upon branding theory and consumer behavior frameworks, the research employs a quantitative approach, surveying 400 online retail consumers in Malaysia. Data were analyzed using SPSS, with results indicating that brand interactivity and content value had the strongest positive influence on cognitive and emotional engagement, while brand consistency also contributed significantly to behavioral engagement. However, brand visibility alone did not guarantee deeper consumer involvement without complementary interactive or personalized content. These findings provide empirical evidence supporting the integration of value-driven content and two-way brand communication in digital strategy. The study offers both theoretical enrichment in digital branding literature and practical implications for retailers aiming to cultivate stronger consumer-brand relationships through digital platforms. Recommendations for future research include extending the model across different sectors and incorporating longitudinal design to assess evolving engagement behaviors in digital contexts.