The effects of smart factory operational strategies and system management on the innovative performance of small-and medium-sized manufacturing firms

Abstract

This study aims to determine the effects of smart factory system management and operational strategies on the innovative performance of small-and medium-sized manufacturing firms. To this end, we administered an empirical survey to 222 hands-on workers who operate smart factories in small-and medium-sized Korean firms. The collected data were analyzed using structural equation modeling and the results showed that the enterprise resource planning (ERP), quality management, ethical management, and productivity management systems had positive effects on innovative performance. The effect of operational strategies on innovative performance was not verified. Consequently, small-and medium-sized firms should focus on establishing ERP systems, which lead to system establishment, standardization of work processes, CEO support and attention, and increase user recognition levels for raising innovative performance.