Evaluating the Status of SMEs in Jordan with Respect to Industry 4.0: A Pilot Study

Maram I. Shqair () and Safwan A. Altarazi
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Maram I. Shqair: Industrial Engineering Department, German Jordanian University, Amman 11180, Jordan
Safwan A. Altarazi: Industrial Engineering Department, German Jordanian University, Amman 11180, Jordan

Logistics, 2022, vol. 6, issue 4, 1-20

Abstract: Background: Industry 4.0 is a burgeoning research area that has been addressed by many research entities. However, the literature shows that the industrial sector lacks the awareness and knowledge needed to comply with Industry 4.0 implications, particularly in developing countries. Methods: This study evaluates the status of small and medium enterprises (SMEs) in Jordan concerning Industry 4.0. Four criteria are assessed, including Industry 4.0 readiness, maturity, drivers, and barriers. Samples of SME respondents and Industry 4.0 experts are surveyed using an online questionnaire. Results: The results show that SMEs in Jordan are not mature enough nor ready to apply Industry 4.0. For the readiness dimension, SME respondents and experts agreed that the Jordanian SMEs’ status is between having initiatives in the pilot phase or implementing concepts to low degrees, except for autonomous workpiece and smart product aspects, in which Jordanian SMEs are behind due to financial and technological reasons. It was found that none of the Industry 4.0 investigated technologies have reached maturity levels. Customer requirements, cost reduction, competitors’ practice, productivity improvement, and quality improvement are found to be the major influencing drivers for Industry 4.0, while a lack of awareness and knowledge is found to be the crucial barrier hampering Industry 4.0 implementation. Conclusions: Jordan needs country-scale initiatives for the implementation of groundbreaking Industry 4.0 development, incorporating government agencies, industrial parties, and experts, relying on Industry 4.0’s readiness and practice status as a starting point, and considering the influential drivers and barriers to steer the development process.

Keywords: developing countries; digital transformation; Industry 4.0; drivers; barriers; readiness; maturity models; small and medium enterprises (search for similar items in EconPapers)
JEL-codes: L8 L80 L81 L86 L87 L9 L90 L91 L92 L93 L98 L99 M1 M10 M11 M16 M19 R4 R40 R41 R49 (search for similar items in EconPapers)
Date: 2022
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