Institutionalization and framing of Industry 4.0: a framework for understanding stakeholders and comparing countries

Abstract

Purpose

This paper aims to propose and assess a framework to analyse the institutionalization of Industry 4.0 (I4.0) through a framing analysis.

Design/methodology/approach

The framework was developed by combining the institutional approach with orders of worth, drawing insights from a comprehensive literature review. To assess it, the authors conducted a qualitative analysis of annual reports from companies with the largest market capitalization over a six-year period and interviewed union representatives in Spain and Sweden.

Findings

The framework comprises five dimensions (industrial, market, civic, green and connectionist). The empirical results reveal that companies consistently frame I4.0 with an emphasis on industrial and market perspectives. In contrast, unions place a stronger emphasis on civic issues, with Spanish unions holding a more negative view of I4.0, expressing concerns about working conditions and unemployment.

Research limitations/implications

The proposed framework brings interesting insights into the dispute over the meaning of I4.0. Although this empirical study was limited to companies and unions in Sweden and Spain, the framework can be expanded for broader investigations, involving additional stakeholders in one or more countries. The discussion outlined using the varieties of capitalism approach is relevant for understanding the connection between the meso and macro levels of this phenomenon.

Practical implications

In navigating the landscape of I4.0, managers should remain flexible, and ready to tailor their strategies and operations to align with the distinct demands and expectations of stakeholders and their specific institutional environments. Similarly, policymakers are urged to acknowledge these contextual intricacies when crafting strategies for implementing I4.0 initiatives across national settings.

Social implications

Based on the empirical findings, this study underscores the importance of fostering social dialogue and involving stakeholders in the implementation of I4.0. Policymakers and other stakeholders should take proactive measures, tailored to each country’s context, to mitigate potential adverse effects on labour and workers.

Originality/value

The study presents a novel framework that facilitates the systematic comparison of I4.0 framing by different actors. This contribution is significant because the way actors frame I4.0 affects its interpretation and implementation. Additionally, the aggregate analysis of results enables cross-country comparisons, enhancing our understanding of regional disparities.

Citation

Fogaça, D.R., Grijalvo, M., Oliveros Iglesias, A. and Sacomano Neto, M. (2024), "Institutionalization and framing of Industry 4.0: a framework for understanding stakeholders and comparing countries", The Bottom Line, Vol. 37 No. 2, pp. 137-157. https://doi.org/10.1108/BL-01-2023-0026