Abstract <p>This study validates an IoT implementation framework tailored for Malaysian Small and Medium-sized Enterprises (SMEs) integrating Industry 4.0 technologies. Employing a mixed-methods approach, the validation involved focus group interviews and a two-round Delphi technique. Expert feedback led to modifications, such as enhancing clarity, incorporating the Plan-Do-Check-Act cycle, and emphasizing user-centric design. Despite recognizing the framework's comprehensiveness, experts highlighted the need for improved functionality and real-time performance, while expressing concerns about complexity. The final IoT framework comprises three phases: IoT Preparation, Planning and Implementation, and Evaluation and Improvement. This structured approach helps SMEs leverage IoT benefits within an Industry 4.0 context. The focus group interviews provided in-depth insights from IoT experts, while the Delphi technique achieved consensus among a broader group of experts. Comparative analysis of validation results emphasized the necessity for framework enhancements to address implementation challenges and improve efficacy. This study's methodology ensures the reliability and validity of the framework, making it a practical tool for SMEs aiming to adopt IoT technologies effectively. The refined framework aligns with the unique challenges and requirements of SMEs, particularly in Malaysia, providing a comprehensive guide for IoT integration.</p> Objectives <p>This study aims to propose a practical framework for integrating IoT within Industry 4.0, specifically for SMEs in Malaysia's automotive sector, with an emphasis on employee training and expert guidance. Current Industry 4.0 frameworks often overlook these particular needs. Our proposed framework addresses this gap by incorporating unique elements designed for SMEs, focusing on connectivity, data security, and employee training modules. To confirm its effectiveness for Malaysian automotive SMEs, we validated the framework using thorough methods like Focus Group Interviews and the Delphi Technique. Finally, this rigorously tested framework aims to enhance productivity and competitiveness in the automotive sector. The specific objectives follow:</p> Data description <p>The dataset of this study on the IoT implementation framework for Malaysian SMEs is valuable for other researchers who want to explore Industry 4.0 technologies. This data is a mixture of both qualitative and quantitative feedback from experts. This mixture offers a well-rounded view of the real-world challenges and opportunities of adopting IoT.</p> <p>The qualitative insights come from in-depth focus group interviews with IoT and Industry 4.0 specialists. These conversations have revealed detailed perspectives on the framework’s design, user experience, and overall functionality. The depth of this data is valuable for understanding the specific challenges SMEs face, especially when it comes to integrating advanced technologies. It also highlights key areas where the framework can be improved, such as its functionality and real-time performance, offering clear, actionable suggestions for enhancement.</p> <p>Additionally, the quantitative data gathered through the Delphi technique adds another layer of validation. This method captures a broader expert consensus, which helps to confirm the framework’s effectiveness and reliability. The iterative nature of the Delphi technique means that a wide range of expert opinions are considered, resulting in a robust, well-rounded validation process.</p> <p>For researchers, this data is incredibly useful. It not only presents a validated framework but also provides detailed feedback on what works well and what could be better. This makes it a great reference for developing similar frameworks or comparing approaches in different settings. Further, it sheds light on crucial factors for successfully adopting IoT technologies, which can be a real asset for anyone studying Industry 4.0 in SMEs.</p>