Digital Technologies 4.0 in Small and Medium-Sized Manufacturing Industries: Cases of the Central Region of Argentina and the Biobio Region of Chile

• Published in: SAGE open Vol. 14; no. 2
• Main Authors: Gatica-Neira, Francisco, Ramos-Maldonado, Mario, Andrés Ascua, Rubén, Revale, Hernán, Fernández, Valentina
• Format: Journal Article
• Language: English
• Published: Los Angeles, CA SAGE Publications 01.04.2024; SAGE PUBLICATIONS, INC; SAGE Publishing
• Subjects: Digital technology; Growth models; Human capital; Manufacturing industry; Public policy; Small & medium sized enterprises-SME; Chile; Argentina; digital technologies 4.0; technological adoption; Central Argentina Region; SMEs; Biobio Region
• ISSN: 2158-2440; 2158-2440
• DOI: 10.1177/21582440241249285

The Fourth Industrial Revolution has built upon the lessons learned from Covid-19 and has emphasized the urgent need for digital transformation in Small and Medium Enterprises (SMEs) in Latin America. This study aims to identify the factors that can explain the varying degrees of adoption of digital technologies 4.0 (DT 4.0). The research analyzes the results of surveys conducted among 35 companies located in the Central Region of Argentina and the Biobio Region of Chile. By utilizing the Technology, Organization, and Environment (TOE) model of adoption and employing data science tools, such as cluster analysis (K-means) and decision trees (J48), the study parameterizes the different responses and generates valuable insights. Our work provides a complementary view to existing studies, analyzing the key factors in the adoption of DT 4.0 in a group of SMEs located in regions, not national capitals, of two Latin American countries with different growth models. The results highlight the significance of business leaders possessing knowledge of DT 4.0, the importance of having specialized human capital, and the need for an organizational culture that embraces innovation. Public policy should focus on transforming business leadership and organizational dynamics to stimulate digital transformation. JEL Classification: O330, O140, O570 Plain Language Summary This paper seeks to identify the factors that may explain the depth of adoption of digital technologies 4.0 (DT 4.0). 35 companies were analyzed, which already have a degree of awareness in enabling technologies of Industries 4.0, distributed in the Central Region of Argentina and the Biobio Region of Chile. Both regions are not national capitals and have similar relative economic importance in their respective countries. Through the Technology, Organization, and Environment (TOE) adoption model, the different responses were parameterized and data science tools were applied, allowing the construction of clusters (K-means) and decision trees (J48). The results show the importance of the business leader having knowledge of DT 4.0, the relevance of having specialized human capital and having an organizational culture willing to innovate.