The Impact of Flexible Work Arrangement and Technology Integration on Work-Life Balance in Malaysia SMEs

Abstract

The evolving landscape of work has transformed workplace practices, with flexible work arrangements (FWA) and technology integration (TI) emerging as essential tools for addressing modern employment challenges. This study examines the impact of FWA and TI on work-life balance (WLB) among employees in Malaysia's Small and Medium Enterprises (SMEs), which contribute nearly 40% to the nation’s GDP. SMEs face challenges in adopting FWA and TI due to resource constraints, particularly in attracting and retaining younger employees who prioritize WLB.

Grounded in the Work-Life Border Theory and Technology Acceptance Model, this study explores how organizational flexibility and technology influence employees' ability to balance personal and professional responsibilities. FWA includes flexible hours, remote work, and compressed workweeks, while TI focuses on tool access, effectiveness, and flexibility. WLB is measured by time balance, stress management, and satisfaction.

Using a quantitative research approach, data were collected from 575 SME employees, with 143 valid responses analyzed using SPSS software. Reliability analysis showed high internal consistency with Cronbach’s alpha exceeding 0.8. Correlation analysis revealed moderate to strong positive relationships between variables, while regression analysis indicated FWA and TI collectively explain 58.5% of WLB variance. TI emerged as a stronger predictor, enhancing productivity, collaboration, and stress reduction. Flexible work arrangements, including flexible hours, remote work, and compressed workweeks, significantly improved balance between personal and professional responsibilities.

This study addresses gaps in WLB research in Malaysia's SMEs and offers actionable recommendations, including tailored FWA, strategic investment in cost-effective technology, and fostering a culture of work-life balance. By aligning workplace practices with employee needs, SMEs can enhance satisfaction and productivity, driving sustainable growth and competitiveness.