Cross-disciplinary innovations by Taiwanese manufacturing SMEs in the context of Industry 4.0

Abstract

PurposeThe aim of this paper is to explore how small and medium enterprises (SMEs) in Taiwan employ technology to participate in global supply chains so as to respond to the Fourth Industrial Revolution.Design/methodology/approachThis study chose four small to medium textile SMEs using qualitative exploratory multiple case studies to examine their participation in the global value chain (GVC) and under the context of Industry 4.0.FindingsThis study proffered a strategic model for the innovative integration of textile manufacturing companies and cultural content industry into the global market. The results identified four types of cross-disciplinary value creation strategies by Industry 4.0-driven technology and cultural content infusion: enhancing digital product display capabilities, integrating cultural content design and online marketing, creative brand marketing with cyber-physical channel integration and emotional marketing incorporated with smart services.Originality/valueThe author proposed the following cross-disciplinary value creation strategies for clothing SMEs in Taiwan: (1) enhancing digital product display capabilities, (2) integrating cultural content design and online marketing, (3) creative brand marketing with cyber-physical integration and (4) emotional marketing incorporated with smart services. Using these strategies, SMEs can incorporate cultural and lifestyle aspects into products and services and embed themselves in the global marketing links of GVCs.

Global value chain breadth and firm productivity: the enhancing effect of Industry 4.0

“…We consider that our graphical analysis indicates that technological change brought about by Industry 4.0 technologies has allowed companies to evaluate their international production strategy from a very different lens. Being able to share relevant information and acquire new knowledge in real time from multiple production facilities that might be located geographically distant (thousands of kilometers apart) provide important benefits (Chen, 2020). It potentially allows reducing coordination costs associated to decentralization of operations, eases knowledge access stimulating learning and creativity, as well as allows managing wider GVC breadth with globally spread value creation actors (Adenfelt, 2010; Strange and Zucchella, 2017).…”

“…In the same vein, the emerging literature on “Supply Chain 4.0” sustains that Industry 4.0 technologies have remarkable implications for GVC design, reconfiguration, operations as well as performance (Frederico et al , 2019) [1]. Therefore, Industry 4.0 technologies not only enable organizations to significantly improve their operational efficiency through effective management of production processes but also contribute to the competitive edge in globally-spread value chains (Chen, 2020). By and large, literature posits that Industry 4.0 technologies can yield a range of opportunities in value chains, such as enhanced product customization, real-time data analytics, increased visibility (virtualization), autonomous monitoring and control, dynamic product design and development and enhanced productivity (Müller et al , 2018; Vendrell-Herrero et al , 2021a).…”

“…We test the hypotheses on a purpose-built survey carried out among a sample of medium-and large-sized enterprises (MLEs) Spanish manufacturing firms. MLEs firms are of two-fold importance when analyzing GVC and Industry 4.0: firstly, MLEs play an important role in most of the global manufacturing industries to expand prime manufacturers' production capacities; and secondly, Industry 4.0 specifically opens new business opportunities for MLEs to access global markets (Chen, 2020). Data obtained from administering the survey to 426 firms were fused with accounting and financial data from the Bureau Van Dijk (BvD) to make the study more robust in relation to monetary values (e.g.…”

Industry 4.0 and cross-disciplinary innovation

“…The review is based on: “Cross-disciplinary innovations by Taiwanese manufacturing SMEs in the context of Industry 4.0” by Chen (2020), published in Journal of Manufacturing Technology Management. Manufacturing SMEs can exploit the capabilities of Industry 4.0 to increase their creative capabilities.…”

SMEs innovating in collaborative networks: how does absorptive capacity matter for innovation performance in times of good partnership quality?

“…Manufacturing firms must embrace innovation activities to improve productivity and ensure sustained economic growth (Chen, 2020). More particularly, innovation has become essential for Small and Medium Enterprises (SMEs) in the manufacturing sector in order to remain competitive in global markets (M€ uller et al, 2020).…”