The mark of industry 4.0: how managers respond to key revolutionary changes

Erlinda N. Yunus

International Journal of Productivity and Performance Management, 2020, vol. 70, issue 5, 1213-1231

Abstract: Purpose - The purpose of this study is to provide a framework of managerial responses to the Industry 4.0 phenomenon, which has impacted the productivity of Indonesian manufacturing companies while revolutionizing global industries. Design/methodology/approach - The study employs qualitative research using the Grounded Theory Method since research in this area is still in its preliminary stages. The study elicits insights from 12 operation managers through a semi-structured interview and a focus group discussion. Using content analysis, the study formulates relationships among Industry 4.0 initiatives, its driving factors and challenges as well as critical success factors and the expected benefits. Findings - The findings reveal that Indonesian manufacturers have engaged in Industry 4.0 initiatives: cyber-physical systems, the internet of things, Big Data and cloud computing. These initiatives require managers to adopt best practices, appoint champions as change agents, conduct training and even tailor the job qualifications of their subordinates to suit the current technology. Research limitations/implications - The qualitative method allows an in-depth investigation that is synthesized into a conceptual framework, but this framework still needs to be empirically tested. The study is currently based on informants from large manufacturing companies. Future studies could scale up the research and validate the findings. Practical implications - This exploratory framework could guide managers in their strategic and operational decisions while embracing the Industry 4.0 transformation inside the organization. Originality/value - Prior studies examining the adoption of Industry 4.0 principles by Indonesian manufacturing companies are rare. Furthermore, conceptual studies dominate the existing literature related to the Industry 4.0 concept. This study attempts to fill the gap and provides a framework that is based on grounded empirical data of manufacturing companies in Indonesia, a newly industrialized economy.

Keywords: Industry 4.0; Indonesian manufacturing firms; Grounded theory method (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijppmp:ijppm-12-2019-0590

DOI: 10.1108/IJPPM-12-2019-0590

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