Digital technology application among Malaysian value-added wood products manufacturers

Abstract

The application of digital technologies (DT) has been on the increase within the manufacturing industries since a decade ago. It has been widely suggested that the onset of the COVID-19 pandemic has accelerated the adoption of DT in manufacturing industries worldwide, as countries have tried to contain and mitigate the spread of infection through lockdowns and stringent standard operating procedures (SOPs). Hence, a study was undertaken to evaluate this trend in the Malaysian wood products industry, and to identify the key DT used. A questionnaire-based survey was implemented and targeted at the furniture, moldings, and builder’s joinery and carpentry sub-sectors, with the assistance of the relevant trade associations. A total of 477 responses were obtained, and it was found that digital technologies, such as computer aided design (CAD), computer numerical control (CNC), digital communication, digital marketing, and enterprise resources planning (ERP) systems, were highly adopted, but they did not significantly differ in terms of company size or product type. However, the rate of adoption was not uniform, as 5% of the respondent companies did not adopt any digital technologies. The study revealed that wood products companies adopted digital technologies that boosted their production and marketing, while those with limited DT adoption were more severely impacted during the pandemic.

Success factors of small and medium enterprises in the Malaysian furniture industry: Discerning the growth of entrepreneurs

“…This is most likely attributable to the fact that the furniture industry thrives on incremental factor inputs, rather than productivity gains. Further, value-addition has been stagnating in the industry (Ratnasingam 2015;Ratnasingam et al 2021). Thus, the extent of entrepreneurship opportunities in the furniture industry needs an in-depth examination to identify the main challenges faced by these potential young entrepreneurs.…”

“…Therefore, the socioeconomic importance of the furniture industry should not be understated, especially in terms of the employment opportunities it creates. bioresources.com Ratnasingam et al (2021). "Furniture success factors," BioResources 16(3), 5586-5600.…”

“…Consequently, this trend may also impact the development of young entrepreneurs, especially the Wood Science and Technology (WST) graduates who may be considering entrepreneurship within the furniture industry. Ratnasingam et al (2021). "Furniture success factors," BioResources 16(3), 5586-5600.…”

Driving Efficiency and Competitiveness: Trends and Innovations in ERP Systems for the Wood Industry

“…Furthermore, the wood-based sector plays a pivotal role in employment, providing jobs for 3.1 million people, which accounts for approximately 10.50% of the total manufacturing workforce in the EU [28]. Furthermore, given the limited adoption of ERP systems in the wood or furniture industry [30][31][32], mainly due to the associated need for investments in computer hardware, network configurations, and a database as an information repository. A shortage of skilled workers further constrains ERP adoption [32].…”

“…Furthermore, given the limited adoption of ERP systems in the wood or furniture industry [30][31][32], mainly due to the associated need for investments in computer hardware, network configurations, and a database as an information repository. A shortage of skilled workers further constrains ERP adoption [32]. Implementing ERP systems in this industry is complex, requiring careful planning and execution, considering factors such as implementation stages and costs, training duration, data migration, top management, and consultant support [33].…”