Evaluation of key factors for industry 4.0 technologies adoption in small and medium enterprises (SMEs): an emerging economy context

Abstract

Purpose Industry 4.0 (I4.0) not only turns traditional industrial activities upside down but also demonstrates its potential to enhance industrial competitiveness and productivity. In this context, technological advancement and I4.0 is a strategy to be pursued. This study aims to consider different I4.0 technologies by analysing Indian small and medium enterprises (SMEs). Design/methodology/approach Key factors and promising I4.0 technologies were selected using literature analysis and experts’ panel. The appropriate I4.0 technology for Indian SMEs is recommended using the fuzzy complex proportional assessment (COPRAS) method. Findings Results reveal that ability to expand IT infrastructure, change in the organization’s structure and the capacity to analyse key performance indicators as three crucial key factors in I4.0 implementation. In particular, the smart factory is identified as a better I4.0 for Indian SMEs. Originality/value This work has analysed Indian SMEs, but it is appropriate for other developing economies with limited technical resources, financial resources and inadequate skill sets. This work identifies a gap in the current literature, and the findings proposed by this work are oriented to assist decision makers, industrial managers and practitioners in selecting I4.0 technology and enhancing the industrial infrastructure. At the same time, cooperation between the government and industrial community is required to develop programmes for imparting the knowledge of I4.0 among SMEs. The framework used in this study will arm the industrial management in adopting I4.0.