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Book part
Publication date: 28 September 2015

Md Shah Azam

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and…

Abstract

Information and communications technology (ICT) offers enormous opportunities for individuals, businesses and society. The application of ICT is equally important to economic and non-economic activities. Researchers have increasingly focused on the adoption and use of ICT by small and medium enterprises (SMEs) as the economic development of a country is largely dependent on them. Following the success of ICT utilisation in SMEs in developed countries, many developing countries are looking to utilise the potential of the technology to develop SMEs. Past studies have shown that the contribution of ICT to the performance of SMEs is not clear and certain. Thus, it is crucial to determine the effectiveness of ICT in generating firm performance since this has implications for SMEs’ expenditure on the technology. This research examines the diffusion of ICT among SMEs with respect to the typical stages from innovation adoption to post-adoption, by analysing the actual usage of ICT and value creation. The mediating effects of integration and utilisation on SME performance are also studied. Grounded in the innovation diffusion literature, institutional theory and resource-based theory, this study has developed a comprehensive integrated research model focused on the research objectives. Following a positivist research paradigm, this study employs a mixed-method research approach. A preliminary conceptual framework is developed through an extensive literature review and is refined by results from an in-depth field study. During the field study, a total of 11 SME owners or decision-makers were interviewed. The recorded interviews were transcribed and analysed using NVivo 10 to refine the model to develop the research hypotheses. The final research model is composed of 30 first-order and five higher-order constructs which involve both reflective and formative measures. Partial least squares-based structural equation modelling (PLS-SEM) is employed to test the theoretical model with a cross-sectional data set of 282 SMEs in Bangladesh. Survey data were collected using a structured questionnaire issued to SMEs selected by applying a stratified random sampling technique. The structural equation modelling utilises a two-step procedure of data analysis. Prior to estimating the structural model, the measurement model is examined for construct validity of the study variables (i.e. convergent and discriminant validity).

The estimates show cognitive evaluation as an important antecedent for expectation which is shaped primarily by the entrepreneurs’ beliefs (perception) and also influenced by the owners’ innovativeness and culture. Culture further influences expectation. The study finds that facilitating condition, environmental pressure and country readiness are important antecedents of expectation and ICT use. The results also reveal that integration and the degree of ICT utilisation significantly affect SMEs’ performance. Surprisingly, the findings do not reveal any significant impact of ICT usage on performance which apparently suggests the possibility of the ICT productivity paradox. However, the analysis finally proves the non-existence of the paradox by demonstrating the mediating role of ICT integration and degree of utilisation explain the influence of information technology (IT) usage on firm performance which is consistent with the resource-based theory. The results suggest that the use of ICT can enhance SMEs’ performance if the technology is integrated and properly utilised. SME owners or managers, interested stakeholders and policy makers may follow the study’s outcomes and focus on ICT integration and degree of utilisation with a view to attaining superior organisational performance.

This study urges concerned business enterprises and government to look at the environmental and cultural factors with a view to achieving ICT usage success in terms of enhanced firm performance. In particular, improving organisational practices and procedures by eliminating the traditional power distance inside organisations and implementing necessary rules and regulations are important actions for managing environmental and cultural uncertainties. The application of a Bengali user interface may help to ensure the productivity of ICT use by SMEs in Bangladesh. Establishing a favourable national technology infrastructure and legal environment may contribute positively to improving the overall situation. This study also suggests some changes and modifications in the country’s existing policies and strategies. The government and policy makers should undertake mass promotional programs to disseminate information about the various uses of computers and their contribution in developing better organisational performance. Organising specialised training programs for SME capacity building may succeed in attaining the motivation for SMEs to use ICT. Ensuring easy access to the technology by providing loans, grants and subsidies is important. Various stakeholders, partners and related organisations should come forward to support government policies and priorities in order to ensure the productive use of ICT among SMEs which finally will help to foster Bangladesh’s economic development.

Details

E-Services Adoption: Processes by Firms in Developing Nations
Type: Book
ISBN: 978-1-78560-325-9

Keywords

Article
Publication date: 26 June 2023

Afeez Kayode Ibikunle, Mohamad Farizal Rajemi and Fadhilah Mohd Zahari

In this paper, the implementation of lean manufacturing and six sigma practices among Malaysian manufacturing SMEs toward achieving sustainable performance was investigated…

Abstract

Purpose

In this paper, the implementation of lean manufacturing and six sigma practices among Malaysian manufacturing SMEs toward achieving sustainable performance was investigated. Furthermore, intention to implement IR 4.0 technologies among manufacturing SMEs was also examined.

Design/methodology/approach

The primary data were collected from 120 manufacturing SMEs across Malaysia using organization as the unit of analysis. The data were collected using the six-point Likert scale questionnaire.

Findings

Based on research findings, about 86% Malaysian manufacturing SMEs implement 6s. Nevertheless, lean and 6s has an influence on sustainable performance among Malaysian manufacturing SMEs. Only about 32.5% Malaysian manufacturing SMEs have the intention to implement IR 4.0 technologies. This study results imply that IR 4.0 technologies implementation among Malaysian manufacturing SMEs are still at infant stage though lean and 6s concept is known by the manufacturing SMEs.

Research limitations/implications

This study has implications for future researchers to explore application of IR 4.0 technologies among manufacturing SMEs. Therefore, there is need to create awareness about the application of IR 4.0 technologies suitable for manufacturing SMEs in order to remain sustainable for local and foreign competitors. From the perspective of system theory, there is an interconnection network across each department in a whole system. More so, sustainable performance can continuously change and improve the system in any organization.

Practical implications

From the view of SMEs policy makers, this study should be use to encourage SMEs to adopt technologically inclined practices. Accordingly, this research recommends government bodies to help support the implementation of sustainable practices due to their sizes and inadequate resources involved. Therefore, the role of government in providing suitable policies that could be beneficial to manufacturing SMEs toward achieving sustainable practices cannot be overlooked. Through proper government support, Malaysian manufacturing SMEs will be able to survive both locally and internationally and also gain competitive advantage.

Originality/value

The main contribution of this paper includes integrated effect of lean manufacturing practices and six sigma implementation among manufacturing SMEs and prioritizing implementation of IR 4.0 technologies to be executed by manufacturing SMEs.

Details

International Journal of Quality & Reliability Management, vol. 41 no. 2
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 8 November 2022

Sudhanshu Joshi, Manu Sharma, Shalini Bartwal, Tanuja Joshi and Mukesh Prasad

The 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…

Abstract

Purpose

The 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/approach

The 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.

Findings

The 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/implications

The 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 implications

This 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/value

The 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.

Details

The TQM Journal, vol. 36 no. 1
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 21 April 2022

Morteza Ghobakhloo, Mohammad Iranmanesh, Mantas Vilkas, Andrius Grybauskas and Azlan Amran

The present study offers a holistic but detailed understanding of the factors that might affect small and medium-sized enterprises (SMEs) adoption of Industry 4.0 technologies to…

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Abstract

Purpose

The present study offers a holistic but detailed understanding of the factors that might affect small and medium-sized enterprises (SMEs) adoption of Industry 4.0 technologies to empower smaller businesses to embrace Industry 4.0.

Design/methodology/approach

The study conducted a systematic review of the literature and drew on the technology-organization-environment framework to identify various technological, organizational and environmental determinants of Industry 4.0 technology adoption and their underlying components. The study applied the textual narrative synthesis to extract findings from the eligible articles and interpret them into the Industry 4.0 technology adoption roadmap.

Findings

Industry 4.0 is a vital strategic option to SMEs, enabling them to keep up with the digitalization race. SMEs significantly lag behind large organizations in benefiting from disruptive Industry 4.0 technologies. SMEs are still struggling with the initial adoption decisions regarding the digital transformation under Industry 4.0. Results identified various determinants that might explain this condition. The study developed a digitalization roadmap that describes the necessary conditions for facilitating SMEs’ digitalization under Industry 4.0.

Practical implications

Various technological, organizational and environmental factors might determine the current positioning of SMEs against Industry 4.0. These determinants can act as barriers or drivers depending on their properties. The roadmap describes determinants indispensable to promoting Industry 4.0 technology adoption among SMEs, such as knowledge competencies or value chain digitalization readiness.

Originality/value

Exclusively focusing on empirical research that reported applied insights into Industry 4.0 technology adoption, the study offers unique implications for promoting Industry 4.0 digital transformation among SMEs.

Details

Journal of Manufacturing Technology Management, vol. 33 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 29 April 2021

Morteza Ghobakhloo and Mohammad Iranmanesh

The digital transformation under Industry 4.0 is complex and resource-intensive, making a strategic digitalization guideline vital to small and medium-sized enterprises' success…

8180

Abstract

Purpose

The digital transformation under Industry 4.0 is complex and resource-intensive, making a strategic digitalization guideline vital to small and medium-sized enterprises' success in the Industry 4.0 transition. The present study aims to provide manufacturing small and medium-sized enterprises (SMEs) with a guideline for digital transformation success under Industry 4.0.

Design/methodology/approach

The study first performed a content-centric literature review to identify digital transformation success determinants. The study further implemented interpretive structural modeling to extract the order at which the success determinants should be present to facilitate the SMEs’ digital transformation success optimally. The interpretive model and interpretive logic knowledge base matrix were also used for developing the digital transformation guideline.

Findings

Eleven success determinants are vital to SMEs’ digital transformation efforts. For example, results revealed that external support for digitalization is the first step in ensuring digital transformation success among SMEs, while operations technology readiness is the most inaccessible success determinant.

Research limitations/implications

The study highlights the degree of importance of the 11 success determinants identified, which magnifies each determinant's strategic priority based on its driving power and dependence power. Theorizing the dependent variable of “digital transformation success” and quantitatively measuring the extent to which each success determinant contributes to explaining “digital transformation success” offers an exciting opportunity for future research.

Practical implications

Digital transformation success phenomenon within the Industry 4.0 context is significantly different from the digitalization success concept within the traditional literature. The digital transformation under Industry 4.0 is immensely resource-intensive and complex. Smaller manufacturers must have specific capabilities such as change management and digitalization strategic planning capability to reach a certain degree of information, digital, operations and cyber maturity.

Originality/value

The digital transformation success guide developed in the study describes each success determinants' functionality in relation to other determinants and explains how they might contribute to the digital transformation success within the manufacturing sector. This guide enables smaller manufacturers to better understand the concept of manufacturing digital transformation under Industry 4.0 and devise robust strategies to steer their digital transformation process effectively.

Details

Journal of Manufacturing Technology Management, vol. 32 no. 8
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 19 December 2019

Fabiana Pirola, Chiara Cimini and Roberto Pinto

Given the challenges that Industry 4.0 poses, the purpose of this paper is to propose a comprehensive assessment model suitable for evaluating small- and medium-size enterprises’ …

4133

Abstract

Purpose

Given the challenges that Industry 4.0 poses, the purpose of this paper is to propose a comprehensive assessment model suitable for evaluating small- and medium-size enterprises’ (SMEs) digital readiness levels, discuss the results of an assessment of 20 manufacturing SMEs using the proposed model and highlight priorities needed to undertake a successful journey towards Industry 4.0.

Design/methodology/approach

The research adopts an empirical approach using multiple case studies. Starting with a literature review about maturity and readiness-assessment models for Industry 4.0, the study’s model has been built and validated through two pilot case studies, with the final model used in an extensive case studies research with 20 enterprises.

Findings

The SMEs used in this research present an intermediate readiness level with respect to Industry 4.0. They are aware of the phenomenon, but management is still taking the first steps towards identifying the most appropriate strategy to approach this Fourth Industrial Revolution. Companies need to exploit all opportunities that data availability provides in terms of knowledge creation and decision-making support, in all forms, through investments in people skills and expertise and through an infrastructure that can support data gathering, analysis and sharing.

Originality/value

The Italian industrial landscape comprises mainly SMEs, mostly needing support to understand their path towards Industry 4.0. Therefore, the proposed model specifically focuses on SMEs, given its modularity, ease of understanding and fit to SMEs’ organisational structure. Furthermore, insights from 20 Italian SMEs are examined, and a list of priorities is highlighted.

Details

Journal of Manufacturing Technology Management, vol. 31 no. 5
Type: Research Article
ISSN: 1741-038X

Keywords

Open Access
Article
Publication date: 7 March 2019

Julian Marius Müller

Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized…

24505

Abstract

Purpose

Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized enterprises (SMEs), remains scarce. In response, the purpose of this paper is to address both aspects, further elaborating on the role that SMEs can take toward Industry 4.0 as provider or user.

Design/methodology/approach

The paper used an exploratory research design based on 43 in-depth expert interviews within the three most important German industry sectors, mechanical and plant engineering, electrical engineering and automotive suppliers. Interviews were conducted with leading personnel of the respective enterprises, including 22 CEOs. They assign business model implications through Industry 4.0, referring to the Business Model Canvas, while the paper delineates between Industry 4.0 providers and users.

Findings

The paper finds that key resources and value proposition are among the most affected elements of the business model, whereas channels are the least affected. Furthermore, distinct characteristics between Industry 4.0 providers and users can be delineated. In general, Industry 4.0 providers’ business models are significantly more affected than users, except for key partners and customer relationships.

Research limitations/implications

Industry 4.0 remains at its early stages of implementation. As a result, many interviewees’ answers remain at a rather general level.

Practical implications

Strategies for the further alignment of the business models are provided for Industry 4.0 providers and users.

Originality/value

The paper is among the few that investigate Industry 4.0 in the context of SMEs and business models.

Details

Journal of Manufacturing Technology Management, vol. 30 no. 8
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 17 March 2020

Antonello Garzoni, Ivano De Turi, Giustina Secundo and Pasquale Del Vecchio

The purpose of this paper is to analyse how digital technologies trigger changes in the business process of manufacturing small and medium-sized enterprises (SMEs) in the Apulia…

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Abstract

Purpose

The purpose of this paper is to analyse how digital technologies trigger changes in the business process of manufacturing small and medium-sized enterprises (SMEs) in the Apulia Region (South Italy). As SMEs play an essential role in the process value creation of industries and countries, the article examines the enablers of Industry 4.0 in a regional contexts characterized by delay in research and development and innovation performances where the companies' competitiveness is based on limited knowledge and technological assets.

Design/methodology/approach

The case study of Smart District 4.0, an ongoing project aimed to promote the digitalization of SMEs operating in the Agri–Food, Clothing–Footwear and Mechanics–Mechatronics in the Apulia Region (South Italy) is analysed. The project has been financed by the Italian Ministry of Economic Development with the final aim to sustain the digital transformation of SMEs in South Italy.

Findings

The results introduce a four levels approach of engagement of SMEs in the adoption of digital technologies, namely, digital awareness, digital enquirement, digital collaboration and digital transformation. Furthermore, for each level of engagement the study describes and discusses some relevant variables that could be used by managers and entrepreneurs to assess the level of readiness for utilization of digital technologies and how to digitalize some processes.

Practical implications

Practical implications regard the definition of a roadmap useful to assess and manage the level of digital transformation of SMEs. Limitations of the study regarding the temporal dimension of the evidences associated to the Smart District 4.0 as well as to the regional context was analysed.

Originality/value

Originality resides in the definition of a roadmap for the digital transformation of SMEs in a region where the profile of companies' digital maturity is still low.

Details

Management Decision, vol. 58 no. 8
Type: Research Article
ISSN: 0025-1747

Keywords

Article
Publication date: 16 July 2021

Jonathan Brodeur, Robert Pellerin and Isabelle Deschamps

This paper aims to propose a collaborative approach model developed based on observations of two aerospace manufacturing small and medium-sized enterprises (SMEs) pursuing their…

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Abstract

Purpose

This paper aims to propose a collaborative approach model developed based on observations of two aerospace manufacturing small and medium-sized enterprises (SMEs) pursuing their digital transformation toward Industry 4.0.

Design/methodology/approach

This research focuses on two manufacturing SMEs in North America, and data were collected using longitudinal case study and research intervention method. Data collection was performed through observation and intervention within the collaborative projects over 18 months.

Findings

A model of a collaborative approach to digital transformation (CADT) for manufacturing SMEs was produced. Based on the study findings, the collaboration manifests itself at various stages of the transformation projects, such as the business needs alignment, project portfolio creation, technology solution selection and post-mortem phase.

Research limitations/implications

Research using the case study method has a limitation in the generalization of the model. The CADT model generated in this study might be specific to the aerospace manufacturing industry and collaboration patterns between manufacturing SMEs. The results could vary in different contexts.

Practical implications

The proposed CADT model is particularly relevant for manufacturing SMEs' managers and consultants working on digital transformation projects. By adopting this approach, they could better plan and guide their collaboration approach during their Industry 4.0 transformation.

Originality/value

This research provides a new perspective to digital transformation approaches in the aerospace industry. It can be integrated into other research findings to formulate a more integrated and comprehensive CADT model in industries where SMEs are significant players.

Details

Journal of Manufacturing Technology Management, vol. 33 no. 1
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 27 February 2024

André de Mendonça Santos, Adriano Machado Becker, Néstor Fabian Ayala and Ângelo Márcio Oliveira Sant’Anna

The aim of this paper is to investigate the potential impact of Industry 4.0 (I4.0) digital technologies on promoting sustainability in small and medium-sized enterprises (SMEs

Abstract

Purpose

The aim of this paper is to investigate the potential impact of Industry 4.0 (I4.0) digital technologies on promoting sustainability in small and medium-sized enterprises (SMEs) within developing economies such as Brazil. Additionally, we present a comprehensive framework that consolidates this correlation.

Design/methodology/approach

Qualitative research was conducted through semi-structured interviews with leaders of SMEs to identify the specific challenges in achieving sustainability. Additionally, interviews were conducted with technology provider firms to evaluate the existing solutions available to SMEs. The interview results were analyzed, and technological solutions were proposed through a focus group session involving four experts in I4.0. These proposed solutions were then compared with the offerings provided by the technology providers. Based on this, a second round of meetings was conducted to gather feedback from the SMEs.

Findings

The findings of this study confirm the feasibility of implementing I4.0 and sustainable practices in SMEs. However, it is crucial to tailor the technologies to the specific circumstances of SMEs. The study presents propositions on how specific applications of technology can address the economic, environmental and social demands of SMEs. Furthermore, a framework is proposed, emphasizing the integration of smart technologies as essential components across sustainability dimensions.

Originality/value

This study makes a significant contribution to the current body of literature as it pioneers the examination of the relationship between I4.0 technologies and sustainability, focusing specifically on SMEs in a developing country context.

Propósito/Objetivos del trabajo

El objetivo de este estudio es investigar el potential impacto de las tecnologías digitales de la Industria 4.0 en la promoción de la sostenibilidad en las pequeñas y medianas empresas (PYMES) en economías en desarrollo, como Brasil.

Diseño/metodología/enfoque

Realizamos una investigación cualitativa mediante entrevistas semiestructuradas a líderes de PYMES para identificar los desafíos que enfrentan en la búsqueda de la sostenibilidad. También llevamos a cabo entrevistas con empresas proveedoras de tecnología para evaluar las soluciones existentes. Los resultados de las entrevistas se analizaron y se propusieron soluciones tecnológicas a través de una sesión de grupo focal con cuatro expertos en la Industria 4.0. Estas soluciones se compararon con las ofertas proporcionadas por los proveedores de tecnología. Posteriormente, se realizaron una segunda reunión para recopilar comentarios de las PYMES.

Hallazgos/Conclusiones

Los hallazgos de este estudio confirman la viabilidad de implementar la Industria 4.0 y prácticas sostenibles en las PYMES. Sin embargo, es crucial adaptar las tecnologías a las circunstancias de las PYMES. Presentamos propuestas sobre cómo las aplicaciones de la tecnología pueden abordar las demandas económicas, ambientales y sociales de las PYMES. Además, proponemos un marco que destaca la integración de tecnologías como componentes esenciales de la sostenibilidad.

Originalidad/valor

Este estudio es pionero en examinar la relación entre las tecnologías de la Industria 4.0 y la sostenibilidad, centrándose específicamente en las PYMES en un contexto de país en desarrollo.

Details

Academia Revista Latinoamericana de Administración, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1012-8255

Keywords

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