Developing capabilities underlying to Industry 4.0 design principles within the manufacturing context
Journal of Manufacturing Technology Management
ISSN: 1741-038X
Article publication date: 2 October 2023
Issue publication date: 24 October 2023
Abstract
Purpose
Using a dynamic capabilities approach, the present study aims to identify and assess the effects of organizational determinants on capabilities underlying Industry 4.0 design principles, such as integration, virtualization, real-time, automation and servitization.
Design/methodology/approach
PLS-SEM enables a two-stage hierarchical latent variable reflective-formative model which was used for assessing the effect of organizational determinants on Industry 4.0 design principles. Five hundred six manufacturing companies constitute the effective sample, representing a population of manufacturing companies in an industrialized country.
Findings
The findings reveal that Industry 4.0 design principles extensively depend on digitalization resource availability. At the same time, companies that possess digitalization and change management capabilities tend to devote more resources to digitalization. Finally, the paper reveals that networking and partnership capability is the critical enabler for change management and digitalization capabilities.
Practical implications
The paper provides empirical evidence that the successful development of Industry 4.0 design principles and their underlying integration, virtualization, real-time, automation and servitization capabilities are resource dependent, requiring significant upfront investment and continuous resource allocation. Further, the study implies that companies with networking and partnership, change management and digitalization capabilities tend to allocate more resources for Industry 4.0 transformation.
Originality/value
Exclusively focusing on empirical research that reported applied insights into determinants of Industry 4.0 design principles, the study offers unique implications for promoting Industry 4.0 digital transformation among manufacturing companies.
Keywords
Acknowledgements
This research has been a part of a project that has received funding from European Regional Development Fund (project No 01.2.2-LMT-K-718-05-0090) under grant agreement with the Research Council of Lithuania (LMTLT). Funded as European Union's measure in response to Cov-19 pandemic.
Since acceptance of this article, the following author(s) have updated their affiliation(s): Alessandro Stefanini is at the Department of Energy, Systems, Territory and Construction Engineering, University of Pisa, Italy and Peiman Alipour Sarvari is at the Luxembourg Institute of Science and Technology (LIST), Luxembourg.
Corrigendum: It has come to the attention of the publisher that the authors of the article Ghobakhloo, M., Vilkas, M., Stefanini, A., Grybauskas, A., Marcinkevicius, G., Petraite, M. and Sarvari, P.A. (2023), “Developing capabilities underlying to Industry 4.0 design principles within the manufacturing context”, Journal of Manufacturing Technology Management, Vol. 34 No. 7, pp. 1183-1207. https://doi.org/10.1108/JMTM-01-2023-0031 included incorrect funding information. The funding information should be as follows: This research has been a part of a project that has received funding from European Regional Development Fund (project No 13.1.1-LMT-K-718-05-0026) under grant agreement with the Research Council of Lithuania (LMTLT). Funded as European Union’s measure in response to Cov-19 pandemic. The authors sincerely apologise for this error.
Citation
Ghobakhloo, M., Vilkas, M., Stefanini, A., Grybauskas, A., Marcinkevicius, G., Petraite, M. and Sarvari, P.A. (2023), "Developing capabilities underlying to Industry 4.0 design principles within the manufacturing context", Journal of Manufacturing Technology Management, Vol. 34 No. 7, pp. 1183-1207. https://doi.org/10.1108/JMTM-01-2023-0031
Publisher
:Emerald Publishing Limited
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