It takes two to tango: technological and non-technological factors of Industry 4.0 implementation in manufacturing firms

Abstract

It is commonly held that new technologies improve the productivity of organizations. However, technology acceptance does not happen instantaneously—it depends on complementary, non-technological changes in organizational behaviour. The lack of the latter may present a barrier to technology implementation and could even result in adverse effects on productivity. This is often the case in emerging economies that are deeply embedded in mature technological frameworks and with limited readiness for the adoption of new technologies. Using data from organizations in the manufacturing sector of an emerging European economy, we empirically tested the effects of technological and non-technological factors of the organizational implementation of Industry 4.0 principles on productivity. The results of the investigation, based on structural equation modelling, reveal the positive effects of technology-related Industry 4.0 factors—such as the Internet of Things, cyber-physical systems, and cloud computing—on productivity. The findings also reveal that these effects are enhanced by the mediating effect of non-technological changes to business models, organizational structures and cultures, strategies, and shifts in focus regarding customers, products, and services. This study adds to the existing body of knowledge in this area by revealing the relevance of the individual channels through which transitions towards Industry 4.0 can be enhanced, using traditional manufacturing environments often neglected in studies within this research field.