The interplay between industry 4.0 maturity of manufacturing processes and performance measurement and management in SMEs

Abstract

Purpose

This paper proposes an SME oriented Industry 4.0 maturity framework to explore the interplay between manufacturing processes, performance measurement system and management practices (PMM). Given that the fourth industrial revolution, famously referred to as Industry 4.0, is a new paradigm for manufacturing firms, it is crucial to know the ‘as-is’ state or maturity of SMEs' manufacturing processes and link it with their PMM. Despite the availability of numerous maturity models, no previous study has tried to link the maturity of manufacturing processes with performance measurement and management.

Design/methodology/approach

Due to the exploratory nature of the study and the lack of theoretical base for Industry 4.0 maturity and PMM interaction, especially in the SME context, a multiple case study approach has been adopted due to its robustness and effectiveness under such circumstances.

Findings

There is a strong interplay between the maturity of manufacturing processes and PMM. The firms that have invested in their manufacturing processes have also developed performance measurements. Overall, performance measurement is more developed than performance management practices.

Originality/value

The characteristics of the interplay between the maturity of manufacturing processes and PMM are summarized in three main propositions. Moreover, the study provides practitioners with an assessment framework to help SMEs evaluate the current state of their manufacturing processes and PMM to highlight the areas of improvement towards the I4.0 expedition.

Citation

Naeem, H.M. and Garengo, P. (2022), "The interplay between industry 4.0 maturity of manufacturing processes and performance measurement and management in SMEs", International Journal of Productivity and Performance Management, Vol. 71 No. 4, pp. 1034-1058. https://doi.org/10.1108/IJPPM-09-2021-0552