Technology-pushed, market-pulled, or government-driven? The adoption of industry 4.0 technologies in a developing economy

Abstract

PurposeThis study aims to investigate the motivations for the adoption of Industry 4.0 technologies among manufacturing firms in developing economies. Specifically, the effects of relative advantage of the technologies, competitive pressure, and government support on the adoption are explored. Moreover, the mediating role of top management support between environmental factors (government support and competitive pressure) and the adoption of Industry 4.0 technologies is examined.Design/methodology/approachA research model is developed based on the technology-organization-environment (TOE) framework strengthened by institutional theory. Structural equation modeling (SEM) approach is employed to evaluate the model using data obtained from 215 manufacturing firms through a cross-industry survey. Additionally, a post-hoc analysis is conducted using cluster analysis and ANOVA.FindingsThe results show that competitive pressure and government support significantly promote top management support, which in turn contributes to the adoption of Industry 4.0 technologies. Relative advantage of the technologies is not significantly related to the adoption.Research limitations/implicationsThis study does not explore the relationship between technology type and the specific needs of manufacturing firms. Future researchers can conduct a more comprehensive analysis by examining how different technology types align with the unique needs of individual companies.Practical implicationsThe findings of this study have implications for both policymakers and managers. Policymakers can leverage these insights to understand the underlying motivations behind manufacturing firms' adoption of Industry 4.0 technologies and develop promoting policies. In turn, managers should keep an eye on government policies and utilize government support to facilitate technology adoption.Originality/valueThis study uncovers the underlying motivations—government support and competitive pressure—for the adoption of Industry 4.0 technologies among manufacturing firms in developing economies. Meanwhile, it complements previous research by showing the mediating role of top management support between environmental factors (government support and competitive pressure) and the adoption of Industry 4.0 technologies.