The Role of Managerial Competencies in Driving Industry 4.0 Adoption: A Comparative Study of Thailand and Vietnam’s Manufacturing Sectors

Lan Thi Ngoc Le, Chawalit Jeenanunta (), Yasushi Ueki, Nuchjarin Intalar and Somrote Komolavanij
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Lan Thi Ngoc Le: School of Management Technology, Sirindhorn International Institute of Technology, Thammasat University, Pathum Thani 12120, Thailand
Chawalit Jeenanunta: School of Management Technology, Sirindhorn International Institute of Technology, Thammasat University, Pathum Thani 12120, Thailand
Nuchjarin Intalar: Department of Computer Science, Faculty of Science and Technology, Thammasat University, Pathum Thani 12120, Thailand
Somrote Komolavanij: Panyapiwat Institute of Management, Nonthaburi 11120, Thailand

Sustainability, 2024, vol. 17, issue 1, 1-28

Abstract: This study investigates the influence of Top Management Team Competencies (TMTCs) and Middle-Tier Managers’ Competencies (MMCs) on the intention to adopt Industry 4.0 (I4.0) technologies in Thailand and Vietnam. Utilizing a quantitative approach with Partial Least Squares Structural Equation Modeling (PLS-SEM), data from 100 manufacturing firms reveal the critical roles of Industry 4.0 readiness level (RL) and perceived usefulness (PU) as mediators in these relationships. The findings highlight that while TMTC significantly enhances organizational readiness, its direct impact on adoption intention is non-significant. Conversely, MMC directly influences both PU and adoption intention, emphasizing the practical role of middle management in bridging strategic vision and operational execution. RL mediates the effects of TMTC on I4.0 adoption intention, whereas PU does not mediate the relationship between TMTC and adoption intention. These insights contribute to the literature on digital transformation, particularly in emerging economies, by identifying distinct managerial roles and the importance of readiness in driving adoption. This study underscores the need for tailored competency development among top and middle managers to foster successful I4.0 adoption and suggests further research into organizational culture, external support, and regional variations.

Keywords: Industry 4.0 adoption; managerial competencies; perceived usefulness (PU); Industry 4.0 readiness level (RL); digital transformation; emerging markets (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2024
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