Effects of Industry 4.0 on different export dimensions: empirical analysis on manufacturing SMEs

Abstract

Purpose: Literature verifies that Industry 4.0 allows Small and Medium Enterprises (SMEs) to improve global market strategies. The paper explores the effects of Industry 4.0 on different export dimensions in manufacturing SMEs. Design/methodology/approach: The analysis is carried out on a statistically representative sample of 2,972 Italian manufacturing SMEs in 2022. The study measures Industry 4.0 as a higher number of 4.0 technologies adopted. Export is analyzed in five dimensions, namely exporting status, export regularity, newness of exporting status, export intensity and export growth. The analysis carries out five regressions controlled for a set of variables on factors that may influence SMEs’ propensity to 4.0 transformation and export. Findings: The results verify the existence of several positive and statistically significant effects of Industry 4.0 on different export dimensions. In particular, SMEs adopting 4.0 technologies obtain an increase in export intensity considered as a share of foreign sales on total sales. Research limitations/implications: Industry 4.0 requires significant investments and resource allocation that should be considered in future studies in addition to moderating effects and cross-country analysis. Practical implications: The study supports the need for managers to align their technological investments and export strategies, suggesting that a synergistic implementation enhances effectiveness in terms of SMEs integration in global markets. Originality/value: The originality of the study lies in empirically testing that Industry 4.0, highly based on digitalization, goes further by improving through strategic and operational changes the impact on SMEs’ export, and opening up to future research, exploring the mechanism of this complex phenomenon.