Identifying Key Success Factors for Industry 4.0 Implementation: An Empirical Analysis Using SEM and fsQCA

Abstract

Industry 4.0 technologies have been gaining significant momentum in recent years. Despite widespread adoption, many companies struggle with the successful implementation of these technologies. This study aims to identify the critical success factors for implementing Industry 4.0 technologies and to examine the effects of various factor combinations. Using the technology–organization–environment framework and the practice-based view, this paper proposes a comprehensive research model. This study employs a hybrid approach combining structural equation modeling (SEM) and fuzzy-set qualitative comparative analysis (fsQCA) to analyze survey data collected from 202 Chinese manufacturing firms. The SEM results indicate that top management support, technology competence, supplier support, and pilot projects are significantly associated with successful implementation. However, the fsQCA results reveal that individual factors alone are insufficient for success; rather, it is the combinations of these factors that drive successful implementation. Specifically, three key combinations lead to success: (1) top management support and technology competence; (2) top management support and supplier support; and (3) technology competence, supplier support, and pilot projects. By recognizing these combinations, manufacturing firms can develop more effective implementation strategies for Industry 4.0 technologies.