Investigating the Readiness Factors for Industry 4.0 Implementation for Manufacturing Industry in Egypt

Abstract

The fourth industrial revolution, or Industry 4.0 (I4.0) is receiving more attention from academics, business leaders, and manufacturers. However, few readiness assessments are currently available that address the difficulties and needs associated with implementing I4.0 to help companies understand how to get ready for an organizational transformation towards I4.0, particularly in developing economies such as Egypt. Accordingly, the current study aims to identify the readiness factors for I4.0 implementation in the industrial sector in the Egyptian context. Quantitative research methodologies were used in this study. The exploratory and deductive approach was used in this study because its goal is to analyse the readiness factors for implementation of I4.0 for Egypt’s industrial sector. Descriptive statistics, t-test and ANOVA test were used to ascertain the significant difference between the respondents’ profile factors and the readiness factors for the implementation of I4.0 in the various industrial sectors. A questionnaire was specifically delivered to Egyptian manufacturing companies. The structural self-interaction matrix (SSIM) approach was conducted to assess and rank the readiness factors of I4.0 implementation as well as examine their hierarchical effects. Then, analytic hierarchy process (AHP) analysis was performed to rank the importance of readiness factors in a different sector. The readiness factors were further analysed using the interpretive structural modelling (ISM) approach for analysis, which was applied by developing a causal relationship between the factors under study through employees’ opinions. This was performed after filtering the most significant readiness factors for industry implementation. This study identified fifteen I4.0 readiness elements that could hasten the technology’s implementation in Egypt’s manufacturing industry and the degree of influence of each element on I4.0 implementation in Egypt within a different culture, sector, and economy from that previously evaluated. The three most critical readiness criteria for implementing I4.0 in the Egyptian manufacturing sector were identified as level of knowledge, management support, and financial support. Results gleaned from the research will help the manufacturing industry be well-prepared for implementation of I4.0. The results of the ISM approach indicated that the factors of financial support, level of knowledge, and management support and leadership are always considered as influencing factors on all other factors. On the other hand, the factors of agility in manufacturing, compatibility with existing technology, and smart factory are always dependent on other factors, such as collaboration and transparency, strategy and organization, and supply chain management and collaboration, in addition to lean, sustainability, and government supportive policies as well as competitiveness, customer-focused innovativeness, financial support, level of knowledge, management support and leadership, and leadership and dealing with insecurity.