Marie-Christin Schmidt, Johannes W. Veile, Julian M. Müller and Kai-Ingo Voigt
The study analyses how Industry 4.0 and underlying digital technologies influence the design of ecosystems in global value chains (GVCs).
Abstract
Purpose
The study analyses how Industry 4.0 and underlying digital technologies influence the design of ecosystems in global value chains (GVCs).
Design/methodology/approach
A qualitative-exploratory research design is used. It deploys a multiple case study based on semi-structured interviews with 73 German managers of multinational enterprises. Applying a qualitative content analysis, the expert interviews are inductively analyzed and triangulated with secondary data to develop a synthesized data structure.
Findings
The analysis reveals a general tendency towards decentralization of value chain activities. Depending on the nature of each activity and several contextual factors, however, hybrids between centralization and decentralization of processes can be observed in Industry 4.0 environments. Consequences for global ecosystems are altered cooperation with business partners, new organizational forms and novel market environments.
Research limitations/implications
Given inherent limitations in scope and methodology, the study calls for cross-industry and cross-country analyses. Further studies should research implications of Industry 4.0 changes in ecosystems and GVCs, and the role digital platforms can play in this context.
Practical implications
The results help companies to analyze and adapt their role in ecosystems and associated GVC activities to Industry 4.0 environments, thus staying competitive in changing market conditions.
Originality/value
This study is among the first to empirically investigate the influence of Industry 4.0 on ecosystems embedded in GVCs. Reflecting existing company environments, it adds an international and company-external perspective to Industry 4.0 research.
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Laura V. Lerman, Guilherme B. Benitez, Julian M. Müller, Paulo Renato de Sousa and Alejandro Germán Frank
Supply chains are increasingly incorporating social perspectives into their activities. It is often argued that social initiatives in supply chain management (SCM) are a response…
Abstract
Purpose
Supply chains are increasingly incorporating social perspectives into their activities. It is often argued that social initiatives in supply chain management (SCM) are a response to external pressures. However, it is still undetermined whether these initiatives can improve economic performance. Additionally, it is proposed that digital transformation in supply chains, also described as Smart Supply Chain, can support social performance. Therefore, this study aims to analyze the association between digital transformation, social performance in SCM and economic performance.
Design/methodology/approach
The study is based on a survey of 473 companies in Brazil, a country where social needs create high pressures on companies to respond to the country’s challenges. The data collected underwent testing using ordinary least squares regression and bootstrapping techniques to examine the mediation effects between Smart Supply Chain, social performance and economic performance.
Findings
The findings indicate that digital transformation supports social performance. Additionally, adopting social initiatives helps to increase firm performance in the context of an emerging economy, while social initiatives mediate between digital transformation and firm performance.
Originality/value
This paper provides a new perspective on the social side of supply chains by demonstrating the close relationship between digital transformation and social engagement initiatives. It argues that aligning digital transformation strategies and technologies with social performance is crucial for companies to establish stronger connections with stakeholders.
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Laura V. Lerman, Guilherme Brittes Benitez, Julian M. Müller, Paulo Renato de Sousa and Alejandro Germán Frank
While it is known that digital transformation facilitates data flow in supply chains, its importance on green supply chain management (GSCM) has not been investigated concisely…
Abstract
Purpose
While it is known that digital transformation facilitates data flow in supply chains, its importance on green supply chain management (GSCM) has not been investigated concisely. This paper aims to expand the theory of digital transformation in GSCM by investigating the interconnections between these concepts and providing an integrative view of a smart green supply chain management (Smart GSCM).
Design/methodology/approach
This adopts a configurational perspective on digital transformation and supply chain management (SCM) to investigate the different dimensions of Smart GSCM and their contribution to green performance. Therefore, this paper analyzes data from 473 manufacturing companies using regression techniques.
Findings
The results show how smart supply chain contributes to green performance through managing green relationships (external GSCM activities) and establishing green operations (internal GSCM activities). Furthermore, this paper finds partial mediating effects for external and internal GSCM activities on green performance. These findings show that smart supply chain (i.e. digital transformation strategy and front-end technologies, supported by several back-end technologies) is directly associated with higher levels of GSCM. It is specifically associated with one of the internal dimensions of green operations, namely, green purchasing activities. Hence, the findings suggest that digital transformation alone is insufficient to achieve green performance, needing a GSCM configuration to mediate this effect.
Practical implications
This study calls attention to how managers should integrate these at least three different perspectives of SCM: digital transformation, external relationships and internal operations to increase green performance.
Originality/value
As the main contribution, this study provides a configurational and holistic understanding of the different dimensions and mechanisms in Smart GSCM.
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Julian M. Müller, Nikolai Kazantsev, Richard Allmendinger, Amirhossein Salehi-Amiri, Jacqueline Zonichenn Reis, Shaden Jaradat, Helena Bartolo and Paulo Jorge Da Silva Bartolo
This conceptual paper aims to present a perspective on how to engineer sustainability through the prism of Industry 4.0 technologies and outline propositions to guide future…
Abstract
Purpose
This conceptual paper aims to present a perspective on how to engineer sustainability through the prism of Industry 4.0 technologies and outline propositions to guide future research.
Design/methodology/approach
This study presents a literature review developing four research propositions, focusing on the nine leading technologies underpinning Industry 4.0 to engineer economic, environmental and social sustainability dimensions.
Findings
The authors derive benefits and challenges of Industry 4.0 technologies across all three business model elements: value creation, value delivery and value capture. The authors derive those for the economic, environmental and social dimensions of sustainability. Thereupon, we develop several propositions for future research.
Practical implications
The authors provide suggestions to practice how to better achieve value in all three sustainability dimensions through implementing a business model perspective, ecosystem thinking, societal demands and Data Governance and AI integration.
Social implications
By linking societal aspects of Industry 4.0 technologies with environmental, and economic aspects, the authors provide several suggestions how to implement Industry 4.0. For instance, policymakers are recommended to support entire ecosystems than isolated solutions.
Originality/value
The paper contributes to extant literature by conceptualising how Industry 4.0 can leverage value in reaching sustainability in all three dimensions and produce broader ecosystems-wide impacts.
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Michael Rachinger and Julian M. Müller
Business Model Innovation is increasingly created by an ecosystem of related companies. This paper aims to investigate the transition of a manufacturing ecosystem toward electric…
Abstract
Purpose
Business Model Innovation is increasingly created by an ecosystem of related companies. This paper aims to investigate the transition of a manufacturing ecosystem toward electric vehicles from a business model perspective.
Design/methodology/approach
The authors investigate an automotive manufacturing ecosystem that is in transition toward electric and electrified vehicles, conducting semi-structured interviews with 46 informants from 27 ecosystem members.
Findings
The results reveal that the actions of several ecosystem members are driven by regulations relating to emissions. Novel requirements regarding components and complementary offers necessitate the entry of actors from other industries and the formation of new ecosystem members. While the newly emerged ecosystem has roots in an established ecosystem, it relies on new value offers. Further, the findings highlight the importance of ecosystem governance, while the necessary degree of change in the members' business models depends on their roles and positions in the ecosystem. Therefore, upstream suppliers of components must perform business model adaptation, whereas downstream providers must perform more complex business model innovation.
Originality/value
The paper is among the first to investigate an entire manufacturing ecosystem and analyze its transition toward electric vehicles and the implications for business model innovation.
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Poonam Sahoo, Pavan Kumar Saraf and Rashmi Uchil
The banking sector is more revolutionized than ever, with advanced technologies driving a seismic change in the financial industry. This study aims to understand how digital…
Abstract
Purpose
The banking sector is more revolutionized than ever, with advanced technologies driving a seismic change in the financial industry. This study aims to understand how digital technologies influence banking sector employees and their perception of working in an era of Banking 4.0.
Design/methodology/approach
This study incorporated qualitative analysis to gain different insights from diverse respondents from banking industries. A purposive sampling method was adopted, and semistructured interviews were conducted, taking a sample of 72 respondents. All the transcripts were then analyzed using NVivo.
Findings
The findings focus on challenges related to understanding technology phenomena, managing changes, infrastructure, skills, competitiveness and regulatory mechanisms. This is further followed by the favorable impact of Banking 4.0 on employees and future avenues, such as innovation in financial services, work productivity, career opportunities and change management, banking 4.0 and banking 5.0, and banking 4.0 management strategies identified as the significant findings.
Practical implications
This study provides guidelines for Banking 4.0 provision strategy and conceptual reference toward the development of Banking 4.0. It also supports the Enhanced Access and Service Excellence 4.0 program, driven by the Indian Bank’s Association, to focus more on digitization, automation and data analytics.
Originality/value
The novelty of this research provides a qualitative hierarchy of significant challenges, favorable impacts and future research avenues of Banking 4.0 in the Indian banking sector.
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Md Faizal Ahmad, Muhammad Ashraf Fauzi, Mohamad Reeduan Mustapha, Puteri Fadzline Muhamad Tamyez, Amirul Syafiq Sadun, Idris Gautama So and Anderes Gui
This study comprehensively reviews the Fourth Industrial Revolution, which refers to Industry 4.0 (IR 4.0) applications in small and medium enterprises (SMEs). Multinational…
Abstract
Purpose
This study comprehensively reviews the Fourth Industrial Revolution, which refers to Industry 4.0 (IR 4.0) applications in small and medium enterprises (SMEs). Multinational companies and big corporations have the capacity and resources to implement IR 4.0, but SMEs are limited due to financial constraints, expertise and lack of resources. Even so, IR 4.0 is required as technologies evolve and market demand has changed how firms do business.
Design/methodology/approach
To uncover the potential of IR 4.0 and critical determinants of SMEs’ adoption of IR 4.0, this study presents a bibliometric analysis to evaluate the current research streams in IR 4.0 adoption among SMEs through bibliographic coupling. Furthermore, this review provides a glimpse of the future by analyzing prospective trends on IR 4.0 in SMEs.
Findings
Bibliographic coupling produces five clusters: (1) challenges and barriers in IR 4.0 implementation among SMEs, (2) technological adoption of IR 4.0, (3) opportunities and benefits of IR 4.0, (4) business model innovation and (5) implication of IR 4.0 on SMEs technologies. On the contrary, co-word analysis produces three clusters: (1) technologies in IR 4.0, (2) strategy and management of IR 4.0 among SMEs and (3) IR 4.0 model for SMEs.
Research limitations/implications
Implications are directly related to business owners, policymakers and technology developers meeting the needs of the industry and SMEs, which are the focus of this review.
Originality/value
The findings contribute significantly to the body of knowledge by presenting a state-of-the-art science mapping approach to uncover the knowledge structure and intellectual linkage of IR 4.0 adoption within SMEs.
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Jonathan Brodeur, Robert Pellerin and Isabelle Deschamps
This paper aims to propose a collaborative approach model developed based on observations of two aerospace manufacturing small and medium-sized enterprises (SMEs) pursuing their…
Abstract
Purpose
This paper aims to propose a collaborative approach model developed based on observations of two aerospace manufacturing small and medium-sized enterprises (SMEs) pursuing their digital transformation toward Industry 4.0.
Design/methodology/approach
This research focuses on two manufacturing SMEs in North America, and data were collected using longitudinal case study and research intervention method. Data collection was performed through observation and intervention within the collaborative projects over 18 months.
Findings
A model of a collaborative approach to digital transformation (CADT) for manufacturing SMEs was produced. Based on the study findings, the collaboration manifests itself at various stages of the transformation projects, such as the business needs alignment, project portfolio creation, technology solution selection and post-mortem phase.
Research limitations/implications
Research using the case study method has a limitation in the generalization of the model. The CADT model generated in this study might be specific to the aerospace manufacturing industry and collaboration patterns between manufacturing SMEs. The results could vary in different contexts.
Practical implications
The proposed CADT model is particularly relevant for manufacturing SMEs' managers and consultants working on digital transformation projects. By adopting this approach, they could better plan and guide their collaboration approach during their Industry 4.0 transformation.
Originality/value
This research provides a new perspective to digital transformation approaches in the aerospace industry. It can be integrated into other research findings to formulate a more integrated and comprehensive CADT model in industries where SMEs are significant players.
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Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized…
Abstract
Purpose
Industry 4.0 is expected to significantly transform industrial value creation. However, research on business models affected through Industry 4.0, and on small- and medium-sized enterprises (SMEs), remains scarce. In response, the purpose of this paper is to address both aspects, further elaborating on the role that SMEs can take toward Industry 4.0 as provider or user.
Design/methodology/approach
The paper used an exploratory research design based on 43 in-depth expert interviews within the three most important German industry sectors, mechanical and plant engineering, electrical engineering and automotive suppliers. Interviews were conducted with leading personnel of the respective enterprises, including 22 CEOs. They assign business model implications through Industry 4.0, referring to the Business Model Canvas, while the paper delineates between Industry 4.0 providers and users.
Findings
The paper finds that key resources and value proposition are among the most affected elements of the business model, whereas channels are the least affected. Furthermore, distinct characteristics between Industry 4.0 providers and users can be delineated. In general, Industry 4.0 providers’ business models are significantly more affected than users, except for key partners and customer relationships.
Research limitations/implications
Industry 4.0 remains at its early stages of implementation. As a result, many interviewees’ answers remain at a rather general level.
Practical implications
Strategies for the further alignment of the business models are provided for Industry 4.0 providers and users.
Originality/value
The paper is among the few that investigate Industry 4.0 in the context of SMEs and business models.
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Markus Lassnig, Julian Marius Müller, Karin Klieber, Alexander Zeisler and Max Schirl
While there are several readiness assessments regarding digital transformation (DT) and Industry 4.0 in extant literature, this study aims to contribute to (a) a better…
Abstract
Purpose
While there are several readiness assessments regarding digital transformation (DT) and Industry 4.0 in extant literature, this study aims to contribute to (a) a better understanding of digital readiness in supply chain (SC) aspects and (b) elaborate on differences between small and medium-sized enterprises (SMEs) and large enterprises.
Design/methodology/approach
The study is based on 409 companies that participated in the Digital Readiness Check (DRC) in the region of Salzburg (Austria) and Bavaria (Germany) – an online assessment for self-evaluating the digital readiness of companies.
Findings
The study's results provide insights for the categories of strategy, employees, initiation of business transactions and SC. These are further differentiated for SMEs and large enterprises.
Research limitations/implications
The study is limited to two regions in Austria and Germany, based on a self-evaluation of companies in a single point of time perspective. For future research, the results of this study should be expanded for different regions. Further, the results could be validated regarding external observations and measuring results at a later point of time.
Practical implications
The DRC may help companies in benchmarking themselves and gaining a better understanding about categories that must be improved, especially regarding SC aspects of DT.
Originality/value
The DRC extends extant literature regarding the differentiation between SMEs and large enterprises as well as focussing on SC aspects of DT.