Challenges of Industry 4.0 Technology Adoption for SMEs: The Case of Japan

Martin Prause
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Martin Prause: Institute for Industrial Organization, WHU—Otto Beisheim School of Management, 56179 Vallendar, Germany

Sustainability, 2019, vol. 11, issue 20, 1-13

Abstract: In the light of several national advanced manufacturing strategies such as Industry 4.0 in Germany or the Made in China 2025 initiative in China, this article examines the challenges of Industry 4.0 adoption of Japanese small and medium-sized manufacturing firms. A technology adoption model for Industry 4.0 is developed and empirically tested with 38 manufacturing companies. The results yield that the market uncertainty of the firm’s business is a significant driver for adoption in the short, medium, and long-term. Relative competitive advantage matters in the short term and top management support in the long-term. No support has been identified concerning advanced manufacturing complexity and market transparency of Industry 4.0 solutions.

Keywords: advanced manufacturing; industry 4.0; SME; technology adoption model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

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Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:11:y:2019:i:20:p:5807-:d:278259

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