Strategies for risk management in adopting Industry 4.0 concept in manufacturing industries

Abstract

Purpose

This paper aims to concentrate on classifying and analyzing the risks associated with the Industry 4.0 (I4.0) concept in manufacturing industries and developing strategies for managing risks.

Design/methodology/approach

In this research paper, risks categories and their sub-components associated with the I4.0 concept are identified by performing a systematic literature survey of peer-reviewed journal articles and taking inputs from industry experts and academicians. Then, the importance of the identified risks and causal relations among risks are analyzed by using decision-making trial and evaluation laboratory (DEMATEL) method. Finally, the strategies are developed to mitigate the identified risks.

Findings

From the literature survey, 6 risk categories and their 19 sub-components associated with the I4.0 concept are identified. The DEMATEL method resulted in economic risks and technical risks as the top two risk categories in the I4.0 concept. Ecological risks and legal and political risks are relatively low-ranked risk categories.

Research limitations/implications

Causal relations and ranking among risk categories and their sub-components are obtained by analyzing responses received through questionnaires. There are other methods also available for risk analysis, which are beyond this study.

Practical implications

This research paper will help the industrialists to effectively manage the risks involved in adopting I4.0 concept in manufacturing industries by adopting strategies.

Originality/value

This research paper gives an idea about risks associated with the implementation of the I4.0 concept in manufacturing industries. Also, this paper uses the DEMATEL method for ranking the identified risk categories and their sub-components.

Citation

Pasi, B.N., Mahajan, S.K. and Rane, S.B. (2023), "Strategies for risk management in adopting Industry 4.0 concept in manufacturing industries", Journal of Science and Technology Policy Management, Vol. 14 No. 3, pp. 563-591. https://doi.org/10.1108/JSTPM-04-2021-0057