Journal Article


Industry 4.0 benefits, challenges and critical success factors: a comparative analysis through the lens of resource dependence theory across continents and economies

Abstract

Purpose. Entering a new era of digital transformation, Industry 4.0 (I 4.0) promises to revolutionize the way business has been done, providing unprecedented opportunities and challenges. This study aims to investigate empirically and comparatively analyse the benefits, challenges and critical success factors (CSFs) of Industry 4.0 across four continents and developing and developed economies. Design/methodology/approach. This study used an online survey to explore the benefits, challenges and CSFs of developed and developing economies. In order to ensure the validity of the survey, a pilot test was conducted with 10 respondents. A total of 149 participants with senior managerial, vice-presidential and directorial positions from developed and developing economies spanning four continents were invited to take part in the survey. Findings. The study ranks benefits, challenges and CSFs across economies and continents. Further, the benefit of Industry 4.0 helping to achieve organizational efficiency and agility differed across the developing and developed economies. Furthermore, the benefit improves customer satisfaction significantly differed across continents; in terms of challenges, Employee resistance to change had a higher proportion in developing economies. The future viability of I 4.0 also differed across the continents. Regarding CSFs, there was no difference across the developing and developed economies. Finally, change management and project management vary across the continents. Research limitations/implications. This study contributes to a balanced understanding of I 4.0 by providing empirical evidence for comparative analysis. Moreover, it extends the concept of resource dependence theory to explain how organizations in developing economies and developed economies deploy resources to manage external condition uncertainties to implement I 4.0. Furthermore, this study provides a structural framework to understand the specific benefits, challenges and CSFs of implementing I 4.0, which can be utilized by policymakers to promote I 4.0 in their economies or continents. Originality/value. To the best of the authors’ knowledge, no studies have empirically demonstrated the comparative analysis of benefits, challenges and CSFs across economies and continents and distinguish an original contribution of this work.

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Authors

Antony, Jiju
Michael, Sony
Garza-Reyes, Jose Arturo
McDermott, Olivia
Tortorella, Guilherme
Jayaraman, Raja
Sucharitha, Rahul Srinivas
Salentijin, Wilem
Maalouf, Maher

Oxford Brookes departments

Oxford Brookes Business School

Dates

Year of publication: 2023
Date of RADAR deposit: 2023-11-01


Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License


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