Segmentation Analysis of MSMEs in Brunei Darussalam Based on IR4.0 Technology Adoption

Abstract

The adoption of IR4.0 technologies is crucial for businesses across all sectors to be more competitive and to maximize their performance. Furthermore, there has been an increase in the adoption of IR4.0 technologies in Micro, Small and Medium Enterprises (MSME) as they provide a significant contribution to every country’s economy. In Brunei Darussalam, the government has recently begun to emphasize the importance of IR4.0 technologies adoption to increase the performance of MSMEs in the country due to the recent low economic diversification rate in the country. This study aims to analyse the current level of adoption of IR4.0 in Brunei’s MSMEs. The K-means machine learning algorithm was applied to segment the MSMEs’ adoption level across sectors and to understand the reasons behind their level of adoption. According to the findings of this study, MSMEs in Brunei Darussalam are currently at the level where they are adopting mostly basic and intermediate technologies and less adoption of advanced IR4.0 technologies. This research used a quantitative method, using primary data from 201 MSMEs in Brunei Darussalam. Implications of the study are outlined in the research and portray a path for future research for researchers, businesses and policymakers.