Industry 4.0: Adoption challenges and benefits for SMEs

• Published in: Computers in industry Vol. 121; p. 103261
• Main Authors: Masood, Tariq, Sonntag, Paul
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.10.2020
• Subjects: Adoption; Benefits; Challenges; Characteristics; CPS; Cyber physical systems; Future industrial systems; Industrial survey; Industry 4.0; Internet of things; IoT; Small and medium sized enterprise; SME; Survey; TAM; Technologies; Technology acceptance model; United Kingdom; TAM; ERP; MNE; Cyber physical systems; CPS; MRP; Industry 4.0; Benefits; IoT; Internet of things; Technology acceptance model; Future industrial systems; PLS; Challenges; UK; MF; Industrial survey; Adoption; DOI; United Kingdom; SME; TOE; Small and medium sized enterprise; I4.0; KMO; SIC; Technologies; Survey; RG; Characteristics; SEM; RO; RQ
• ISSN: 0166-3615; 1872-6194
• DOI: 10.1016/j.compind.2020.103261

•First survey of UK SMEs (n = 271, KMO = 0.701) on adoption of Industry 4.0 technologies (n = 20)•First application of Technology Acceptance Model on Industry 4.0 in SMEs•Guidance on which aspects should be focussed on to ensure success of Industry 4.0 in SMEs•Flexibility, cost, efficiency, quality and competitive advantage are key benefits•Financial, awareness and knowledge constraints are found to be key adoption challenges Future industrial systems have been popularised in recent years through buzzwords such as Industry 4.0, the Internet of Things (IoT), and Cyber Physical Systems (CPS). Whilst the technologies of Industry 4.0 and likes have many conceivable benefits to manufacturing, the majority of these technologies are developed for, or by, large firms. Much of the contemporary work is therefore disconnected from the needs of small and medium-sized enterprises (SMEs), despite the fact they represent 90 % of registered companies in Europe. This study approaches the disconnect through an industrial survey of UK SMEs (n = 271, KMO = 0.701), which is the first in the UK that used to collect opinions, reinforcing the current literature on the most reported Industry 4.0 technologies (n = 20), benefits, and challenges to implementation. Flexibility, cost, efficiency, quality and competitive advantage are found to be the key benefits to Industry 4.0 adoption in SMEs. Whilst many SMEs show a desire to implement Industry 4.0 technologies for these reasons, financial and knowledge constraints are found to be key challenges.