Critical factors affecting digital transformation in manufacturing companies

Koteshwar Chirumalla (), Pejvak Oghazi (), Rosa Eluekezi Nnewuku (), Hatice Tuncay () and Nima Yahyapour ()
Additional contact information
Koteshwar Chirumalla: Mälardalen University
Pejvak Oghazi: Södertörns University
Rosa Eluekezi Nnewuku: Mälardalen University
Hatice Tuncay: Mälardalen University
Nima Yahyapour: Södertörns University

International Entrepreneurship and Management Journal, 2025, vol. 21, issue 1, No 54, 52 pages

Abstract: Abstract Digital transformation represents a compelling opportunity for manufacturing companies to enhance their competitiveness. This transformative journey offers myriad possibilities, including improved connectivity between workers and machines, as well as seamless machine-to-machine interactions. However, many manufacturing companies encounter challenges when attempting to implement digital transformation effectively. The process of digital transformation is often slow, and most companies find themselves in the early stages of adoption, grappling with the ambiguity surrounding the associated technologies. A systematic approach for the implementation of digital transformation is still elusive for many manufacturing companies. The number of studies exploring digital transformation is increasingly growing, encompassing various sectors and domains. However, within the manufacturing sector, there remains a need for further research and clarity on systematic implementation approaches. To address these issues, this research undertakes a comprehensive analysis to identify the critical factors that influence digital transformation in the manufacturing sector. The objective of this research is to identify the factors that drive the success of digital transformation in manufacturing companies while also uncovering factors that, when neglected, could lead to failure. Through a systematic literature review, this research identifies 11 critical factors. These factors serve as the basis for developing the ARTO model, a structured framework comprising four distinct categories: "Awareness-related factors," "Readiness-related factors," "Technology Selection-related factors," and "Operations-related factors." Moreover, this research incorporates expert perspectives gathered through a survey to refine the ARTO model. This study offers the ARTO model and digital transformation definition as practical tools for successfully implementing digital transformation in manufacturing companies, while also delineating the intricate relationships among the crucial factors. By shedding light on the factors underpinning digital transformation in the manufacturing sector, this research contributes to the ongoing discourse and facilitates more effective adoption of digital transformation strategies.

Keywords: Digitalization; Industry 4.0; Digital technologies; Critical factors; Manufacturing industry; Technology integration; Success factors; Smart production; Transition management (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1007/s11365-024-01056-3 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:intemj:v:21:y:2025:i:1:d:10.1007_s11365-024-01056-3

Ordering information: This journal article can be ordered from
http://www.springer. ... urship/journal/11365

DOI: 10.1007/s11365-024-01056-3

Access Statistics for this article

International Entrepreneurship and Management Journal is currently edited by Salvador Roig

More articles in International Entrepreneurship and Management Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().