Prioritisation and causal relationships of industry 4.0 readiness determinants: empirical validation of an assessment framework

Abstract

PurposeThe main purpose of this research is to (1) prioritise key determinants of Industry 4.0 (I4.0) readiness assessment and (2) evaluate causal relationships among those determinants and associated sub-criteria based on inputs from industry experts.Design/methodology/approachThe methodology involved two phases: (1) an MCDM approach for determining causal relationships among determinants and (2) empirical validation of findings from the first phase using industry experts' inputs.FindingsIt was found that while the choice of I4.0 technologies is important, organisational factors are also critical, as evidenced by the ranking of the “Strategy and Organisation” determinant as the highest rank prominent determinant. Also, the ranking of the sub-criteria within each determinant shows the importance of several organisational influencing and resulting sub-criteria.Research limitations/implicationsThis research extends the existing literature on I4.0 by demonstrating the prioritisation of determinants and delineating causal relationships among them and associated sub-criteria as a basis for developing I4.0 adoption guidelines. This research is limited to the specific scope of determinants selected/considered and experts' inputs from the Sri Lankan manufacturing sector. Future studies could consider extending this research into a broader global manufacturing context.Practical implicationsPrioritisation and causal relationships of I4.0 readiness assessment determinants, supported with inputs from functional managers and industry experts, could be used to guide practitioners in developing guidelines for I4.0 adoption in a phased manner.Originality/valueThis research provides a re-evaluation and validation of a selected I4.0 readiness assessment framework from the perspectives of interdependencies and casual relationships among its determinants and sub-criteria, based on inputs from industry experts as a basis for developing guidelines for I4.0 adoption.