Factors Influencing 4.0 Technology Adoption in Manufacturing SMEs in an Emerging Country

Berrío, Sandra Patricia Rojas; Rincón-Novoa, Jeisson Leonardo; Sánchez-Monrroy, Maria; Ascúa, Rubén; Restrepo, Luz Alexandra Montoya

doi:10.53703/001c.34608

Cited by 9 publications

(17 citation statements)

References 42 publications

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“…In comparison to IE 4.0 implementation, structural changes require extensive capital investments, whereas OPEX methodologies do not require many capital investments (Naruetharadhol et al, 2022;Philbin et al, 2022;Rojas-Berrio et al, 2022). The previous research highlights that the OPEX methodology includes various approaches to digital technologies that are crucial to realize the IE 4.0 era (Antony et al, 2021a, b;Joshi and Sharma, 2022a;Radinja et al, 2019;Kempegowda and Chaczko, 2018).…”

Section: Introductionmentioning

confidence: 99%

Critical challenges of integrating OPEX strategies with I4.0 technologies in manufacturing SMEs: a few pieces of evidence from developing economies

Joshi

Sharma

Bartwal

et al. 2022

TQM

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PurposeThe study proposes to determine the impending challenges to lean integration with Industry 4.0 (I4.0) in manufacturing that aims at achieving desired operational performance. Integrating lean and Industry 4.0 as the two industrial approaches is synergetic in providing operational benefits such as increasing flexibility, improving productivity, reducing cost, reducing delivery time, improving quality and value stream mapping (VSM). There is an urgent need to understand the integrated potential of OPEX strategies like lean manufacturing and also to determine the challenges for manufacturing SMEs and further suggest a strategic roadmap for the future.Design/methodology/approachThe current work has used a combined approach on interpretative structural modeling (ISM) and fuzzy Matrice d'impacts croisés multiplication appliquée á un classment (MICMAC) approach to structure the multiple level analysis for the implementation challenges to integrate OPEX strategies with Industry 4.0.FindingsThe research has found that the indulgence of various implementation issues like lack of standardization, lack of vision and lack of trained support, all are the major challenges that inhibit the integration of OPEX strategies with I4.0 technologies in manufacturing.Research limitations/implicationsThe research has investigated the internal factors acting as a roadblock to lean and Industry 4.0 adoption. Further studies may consider external factors to lean and Industry 4.0 implementation. Also, further research may consider other operational excellence approaches and extend further to relevant sectors.Practical implicationsThis study provides the analysis of barriers that is useful for the managers to take strategic actions for implementing OPEX strategies with I4.0 in smart manufacturing.Originality/valueThe research determines the adoption challenges towards the integrated framework. This is the first study to explore challenges in integrating OPEX strategies with I4.0 technologies in manufacturing SMEs.

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Section: Introductionmentioning

confidence: 99%

Critical challenges of integrating OPEX strategies with I4.0 technologies in manufacturing SMEs: a few pieces of evidence from developing economies

Joshi

Sharma

Bartwal

et al. 2022

TQM

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“…The first phase reviews the benefits and challenges of embracing Industry 4.0 to contribute to the factors that might be obstacles or challenges to adopting Internet use and an overview of why SMEs could embrace Internet use and IoT before they step into the Industry 4.0 paradigm. Research (Masood & Sonntag, 2020), (Sriram & Vinodh, 2021), (Rojas-Berrio et al, 2022), (Rassool & Dissanayake, 2019), and (Ushada et al, 2022) mentioned financial aspects which are more related to two indicators: Productivity and Use of Digital Technology. Research (Masood & Sonntag, 2020), (Ghobakhloo et al, 2022) and (Rassool & Dissanayake, 2019) also commonly mentioned knowledge constraints, specified as Education Level and Training in current research.…”

Section: Research Methods 21 Research Designmentioning

confidence: 99%

“…In Malaysia, the organization's capabilities, SMEs' institutional support, Firm size market factors, and perceived advantage were marked (Wong & Kee, 2022). In Colombia, Opportunities in the market, labor issues, client demands, rivalry, and a high-quality image were summed into driving factors: Lack of expertise, finance, and skills grouped into facilitating factors, while technological difficulties, operator training, and leveraging their mindset, lack of appropriate people were identified as impeding factors (Rojas-Berrio et al, 2022). In six Central European regions, investment factors, social capital, Management support, and absorptive capacity are the limitations (Agostini & Nosella, 2020).…”

Section: Introductionmentioning

confidence: 99%

INDONESIAN SMEs' ATTITUDE TOWARD INTERNET USAGE AS A PREREQUISITE OF INDUSTRY 4.0 TECHNOLOGY ADOPTION

Joseph,

Suryadi

2024

IJEBAR

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Indonesia has been experiencing rapid economic growth over the past few years, driven by small and medium-sized enterprises (SMEs). However, with the advent of Industry 4.0 and the Internet of Things (IoT), SMEs must adopt and embrace new technologies to remain competitive. The changes directed scholars to study the adaptability and impact of those technologies on the organization’s efficiency; however, none has provided the roadmap for Indonesian SMEs to adopt Industry 4.0. Thus, the current research examines the preparedness of Indonesian SMEs’ adaptability to Industry 4.0 by analyzing the impact of SMEs’ capability and pillar enablers to use the internet as a prerequisite for adoption. The research uses secondary data named Sakernas with 215034 respondents. The structural equation modeling model was built based on SMEs’ capability, pillar enabler, and attitude to use the internet and was tested through computer software. The results show that both the SMEs' Capability (Number of Employees, Employee Education Level, and Revenue) and Pillar Enabler (Use of Digital Technology, Training, and Productivity) positively correlate with Internet use in communication and Promotion with a weight of 0.18 and 0.06 respectively while the P-value is below 0.001. Hence, Indonesian SMEs interested in stepping into the Industry 4.0 paradigm must eventually embrace the Internet first and then IoT to build the bridge to implement Industry 4.0.

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“…In the literature, we note that the governments in developed countries have made provisions for incentives (Arcidiacono et al, 2019;Da Roit & Iannuzzi, 2022); tax benefits (Da Roit & Iannuzzi, 2022;Garbellano et al, 2019) and subsidies (Surianarayanan & Menkhoff, 2020) to SMEs to encourage adoption. In developing countries, it appears government funding is available, however, it is insufficient and takes longer to acquire, as explained by Serumaga and Van der Poll (2021) and Rojas-Berrio et al (2022).…”

Section: Developed and Developing Countries Represented In The Primar...mentioning

confidence: 99%

Comparative analysis of national innovation systems: Implications for SMEs' adoption of fourth industrial revolution technologies in developing and developed countries

Mosupye-Semenya

2024

JEMI

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PURPOSE: This study aims to identify the differences and similarities in the innovation systems of developing vs. developed countries that influence SMEs’ adoption of Fourth Industrial Revolution (4IR) technologies. There is a notable absence of comparative research between National Innovation Systems (NIS) of developing and developed countries. Additionally, the current scholarly conversation lacks a holistic view of NIS. Our study aims to fill these gaps by employing Lundvall’s framework to explore both developed and developing countries’ systems comprehensively. METHODOLOGY: The data was collected through a Systematic Literature Review, identifying a total of 695 publications from SCOPUS, Web of Science (WoS), and ProQuest. The PRISMA process was adhered to, resulting in 32 papers undergoing quality evaluation using Gough’s ‘weight of evidence’ guidelines. Twenty-nine primary papers were selected, comprising twelve from developed countries, another twelve from developing countries, and the remainder from both categories. Using Qualitative Meta-synthesis (QMS) with ATLAS.ti, a systematic alignment of codes with research inquiries pertaining to NIS ensued, revealing a multifaceted spectrum of findings across these scholarly investigations. FINDINGS: We found that there are similarities and differences between the innovation systems of developed and developing nations. The similarities include the intra-firm interactions taking place between managers and workers, inter-firm relations between the SMEs and Academia and other SMEs, as well as the role of the government in providing funding and regulation (albeit at significantly varying degrees). The most significant differences observed were in the funding mechanisms, the role of the government, and the R&D systems. It was found that governments in developed countries provided SMEs with substantial incentives, tax credits, and subsidies to adopt 4IR technologies, which appears to positively impact the adoption rate. We conclude by developing a conceptual framework for the NIS necessary for the adoption of SMEs’ 4IR technologies in developing countries. IMPLICATIONS: This study contributes to the literature on innovation systems by examining the NIS of both developed and developing countries. This analysis allows us to gain deeper insights into how specific aspects of each country (developed or developing) affect (positively or negatively) SMEs’ adoption of 4IR technologies. Practically, it informs governments in developing countries on which aspects to focus on in their NIS to increase the rate of the adoption of 4IR technologies by SMEs. ORIGINALITY AND VALUE: A distinctive aspect of this study lies in the creation of a comprehensive conceptual model delineating the essential components of the innovation system pivotal for the successful integration of 4IR technologies within SMEs. This model is designed to serve as a practical tool for governments in developing countries, providing a structured framework to facilitate and enhance the strategic development of their innovation landscapes.

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Factors Influencing 4.0 Technology Adoption in Manufacturing SMEs in an Emerging Country

Cited by 9 publications

References 42 publications

Critical challenges of integrating OPEX strategies with I4.0 technologies in manufacturing SMEs: a few pieces of evidence from developing economies

Critical challenges of integrating OPEX strategies with I4.0 technologies in manufacturing SMEs: a few pieces of evidence from developing economies

INDONESIAN SMEs' ATTITUDE TOWARD INTERNET USAGE AS A PREREQUISITE OF INDUSTRY 4.0 TECHNOLOGY ADOPTION

Comparative analysis of national innovation systems: Implications for SMEs' adoption of fourth industrial revolution technologies in developing and developed countries

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