Industry 4.0 Adoption in Manufacturing Industries Using Technology-Organization-Environment Framework

Abstract

This paper investigated the determinant factors affecting the Industry 4.0 ecosystem needed for the digitization and automation of manufacturing industries. The 4th industrial revolution implements a value chain by interfacing internet of things devices and robotics, data processing in the cloud using artificial intelligence-based analytics. The study was conducted in Pune, India, a manufacturing and IT services hub. It sought to identify Industry 4.0 facilitators and inhibitors by framing empirical data collected from 320 manufacturing facilities and analyzed using PLS-SEM within a model based on technology-organization-environment (TOE) theory and motivation-threat-ability (MTA) theory. The results confirmed that technology competence, organization scope, consumer readiness, competitive pressure, trading partners' readiness, and governance practices are the facilitators, whereas organization resistance inhibits Industry 4.0 adoption intentions. The outcome of this study shall provide guidelines to manufacturing industries management as well as technology solution providers.