Citation: Tung, S.S.; Dorasamy, M.; Ab Razak, R. Knowledge Creation for Digital Innovation in Malaysia: Practitioners’ Standpoint. Sustainability 2022, 14, 12375. https://doi.org/10.3390/ su141912375 Academic Editors: Roberto Cerchione and Luigi Aldieri Received: 15 June 2022 Accepted: 4 September 2022 Published: 29 September 2022 Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affil- iations. Copyright: © 2022 by the authors. Licensee MDPI, Basel, Switzerland. This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license (https:// creativecommons.org/licenses/by/ 4.0/). sustainability Article Knowledge Creation for Digital Innovation in Malaysia: Practitioners’ Standpoint Soon Seng Tung, Magiswary Dorasamy * and Ruzanna Ab Razak Faculty of Management, Multimedia University, Cyberjaya 63100, Malaysia * Correspondence: magiswary.dorasamy@mmu.edu.my Abstract: Background: Malaysia established the National Industry 4.0 strategy (NI4.0) in 2018 to aid the country’s industries in adopting modern technologies to increase productivity and competitive- ness. The purpose of NI4.0 is to increase enterprises’ intelligence capabilities as smart manufacturers in the Association of Southeast Asian Nations (ASEAN), who employ data and information across the whole enactment process. As a result, high-technology adoption in NI4.0 is expected to improve knowledge creation (KC) in the Information Technology (IT) business. Recent NI4.0 breakthroughs have permitted new types of borderless projects, thereby, increasing the complexity and unpre- dictability of IT projects while simultaneously providing a multitude of new knowledge. However, the understanding of contemporary practice difficulties in IT projects and the knowledge creation phenomena is limited. Method: This study is exploratory in nature with a generic qualitative research method. Ten selected key IT project managers were interviewed to understand the current challenges confronting IT projects in Malaysia to build practice-oriented problem statements and to provide relevance leading to a research framework for knowledge creation impacting digital innovation. Interview data were systematically analysed using the NVivo software tool. Results: Practitioners’ reflected that a transactive memory system, IT support and T-shaped skills are current challenges in Malaysian IT projects. This is consistent with the literature. Conclusions: This practice review benefits Malaysia’s public and commercial sectors by confirming that the literature is coherent with practice by providing insights that may warrant further research in this field. Keywords: knowledge creation; preliminary interview; national industry 4.0; digital innovation 1. Introduction In recent years, the remarkable development of Information and Communication Tech- nology (ICT) systems has encouraged the movement of talent, resources and knowledge beyond the limits of ICT ventures. ICT industry has rendered important contributions to jobs and profits for Malaysia. Statistics indicate that the ICT industry contributes RM 267.7 billion to the national economy, which is equivalent to 18.5 per cent of the GDP in 2018 [1]. Under NI4.0, the Malaysian Government has defined the main digital areas for the ICT industry. Admittedly, NI4.0 opens up the opportunity for a digital transition in the ongoing industrial revolution. Key digital fields include Artificial Intelligence (AI), Internet of Things (IoT), Cloud, Data Mining, Cyber Protection, Data Centers and e-commerce. New technology with broader scope and complexity increased in the ICT industry, a wealth of new knowledge has also appeared. While academics and practitioners are increasing worried regarding the usage of such emerging technology by organisations, little is known about the implications for the practice of KC and the potential to improve for enterprises [2]. KC has been a catalyst of global competitiveness for NI4.0 [3]. Competitive advantages are generated through KC and contribute to the firm’s potential progress [4]. Numerous pieces of evidence imply that Japanese firms, such as Honda, Canon, Matsushita, NEC, Sustainability 2022, 14, 12375. https://doi.org/10.3390/su141912375 https://www.mdpi.com/journal/sustainability