The Role of a Leader and the Effect of a Customer's Smart Factory Investment on a Firm's Industry 4.0 Technology Adoption in Thailand

Abstract

Manufacturers are aware of Industry 4.0 trends due to the new technologies and the transformation of processes that require new competencies of employees and an integrated system in the supply chain network. The purpose of this paper is to examine the role of a leader through a transformational leadership style and the effect of a customer's smart factory investment on a firm's Industry 4.0 technology adoption in the Thai manufacturing industry. In total, 125 valid samples from different companies surveyed in the Thai manufacturing industry were used to analyze the mentioned relations. The multiple regression results show that a leader's transformational leadership and external pressure, such as a customer's smart factory investment, have positive impacts on a firm's operational technology (OT) and information technology (IT) adoptions. These results reveal that successful technology implementation requires both internal and external factors to push for organizational change.