Organizations in both developed and developing economies are paying great attention to the Industry 4.0 revolution and associated uses of technologies due to its potential benefits to the manufacturing industry. However, there are a limited number of empirical studies due to its early stage of adoption around the world, especially regarding the key technological factors that are necessary. This study addresses this research gap by identifying the factors that enable successful Industry 4.0 technologies adoption in an emerging economy country, grouping them, and ranking the groups based on priorities for adoption. The study adopts a mixed-method research methodology. Q-Sort technique and Analytic Hierarchy Process (AHP) respectively were used to group enabling factors and prioritize the groups for Industry 4.0 technologies adoption. Thereafter, semi-structured interviews of key stakeholders in the manufacturing sector in Thailand were carried out to validate and support findings from the quantitative analysis. Five industry experts from automotive and electronic parts/components manufacturers were interviewed. The results show that human capital is the most important readiness dimension for Industry 4.0 technologies implementation.Interoperability and data handling were found to be the next in importance. On the contrary, hardware and technology systems such as data security and technological infrastructure were identified as the least important of the technology readiness dimensions. These findings provide a different perspective to extant studies that posited that technology-based factors as the most important for Industry 4.0 success.
Managerial Relevance StatementThe rapid development of Industry 4.0 has significantly influenced manufacturing organizations' operations and decisions. As manufacturers increasingly seek to adopt Industry 4.0, it is important that they know where to direct their efforts and resources. This study emphasizes that human development issues are critical to the success of Industry 4.0. The implication for managers is that human capital must be developed in tandem with technology. The study also highlights the importance of interoperability and therefore, managers must choose Industry 4.0 systems and technology with the ability to be interoperable with other systems and/or organizations in their ecosystems. Finally, the research encourages managers to consider production flexibility and process stability as the most important performance measures for Industry 4.0 implementation.