Small and medium enterprises’ adoption of 4IR technologies for supply chain resilience during the COVID-19 pandemic

Abstract

The coronavirus disease 2019 (COVID-19) pandemic that began to spread at the beginning of 2020 revealed the vulnerability of many businesses to supply chain disruptions (Mavilia & Pisani 2021;Nasution et al. 2020; United Nations Industrial Development Organisation [UNIDO] 2020). The lockdown measures instituted in many countries disrupted production flows and regional and global supply chains, reduced demand for non-essential goods and services and forced enterprises to suspend or scale down operations (Ratten 2020; International Monetary Fund [IMF] 2020; The International Labour Organisation [ILO] 2020a). Small and medium enterprises, in particular, encountered intense business interruption risks, such as delayed or failed deliveries, acute shortage of inputs, and consequently, reduced production capacity and/or shutdowns (WTO 2020; Gurría 2020; Segal & Gerstel 2020; Thaha 2020) after WTO 2020. Hence, there is a need for SMEs to build their supply chain resilience (SCR) to cope with the volatility resulting from the COVID-19 pandemic.The health protocols put in place to contain the pandemic, which reduced the demand for non-essential goods and services, have led to declines in SMEs' sales and cash flows (Bouey 2020;Background: This study is motivated by the scarcity of empirical literature from developing countries on the small and medium enterprises' (SMEs) adoption of Fourth Industrial Revolution (4IR) technologies and supply chain resilience (SCR) nexus during the coronavirus disease 2019 (COVID-19) pandemic. Objectives:The study assessed the current level of 4IR adoption amongst Zimbabwean SMEs, investigated the drivers thereof and analysed the effect of 4IR technologies on SMEs' SCR amidst the COVID-19-induced disruptions. Method:The study employed a quantitative research approach where data were collected through an online cross-sectional survey of 318 SME owners or managers in Zimbabwe. The logit regression model using the IBM SPSS software was utilised for the main estimation. Results:The study revealed that the adoption of 4IR technology amongst Zimbabwean SMEs is still low owing to high costs and ignorance of some SME owners or managers. However, personal innovativeness, education, information and communication technology (ICT) literacy, security and ICT ease of use were the main drivers for the adoption of 4IR technology. A positive link was established between 4IR adoption and SCR. Conclusion:This study contributes to the nascent literature on fostering SME SCR through the adoption of 4IR technologies by SMEs from developing countries, in particular. The study recommends collective efforts by all relevant stakeholders to raise awareness about 4IR technology and enhance ICT literacy whilst addressing 4IR-enabling infrastructure and internet access costs.

Factors influencing small and medium-sized enterprise (SME) resilience during the COVID-19 outbreak

“…This has already been practiced for many years by SMEs; therefore, it is not a recent concept, but the magnitude has risen (Fitriasari, 2020.). The utilization of technology will undoubtedly influence how crises are handled today and government backing, which has become a must to sustain a company's existence (Zighan et al ., 2022; Munongo and Pooe, 2022). Our research showed that prosocial leadership is one of the key factors in keeping people calm at work and promoting a sense of community at work.…”

The Potential of ICT Adoption in Promoting Sustainable and Resilient Supply Chains: Evidence from Greek Logistics Firms

“…Researchers also note the impact of Fourth Industrial Revolution (4IR) technologies on SMEs' SCR, illustrating a positive link between 4IR adoption and SCR [56]. The adoption of Industry 4.0 significantly impacts SCR, highlighting the importance of information visibility in the SC [57].…”

Examining the Response to COVID-19 in Logistics and Supply Chain Processes: Insights from a State-of-the-Art Literature Review and Case Study Analysis

“…Industry 4.0 technologies include artificial intelligence (AI), IoT, e-commerce platforms, Machine Learning (ML) with Big Data, and virtual reality (VR). To manage and address the negative impact of the pandemic, an increase in the use of these technologies by companies was noted [106], contributing to a more resilient SC; ICT tools, through data collection, analysis and dissemination, improve performance, enabling high flexibility with reduced costs and optimal use of available resources [107]. The use of I4.0-related technologies also requires qualified and skilled personnel, so that companies can benefit from their implementation [108].…”