What makes micro, small, and medium enterprises not adopt Logistics 4.0? A systematic and structured approach using modified-total interpretive structural modelling

Micro, small, and medium enterprises (MSMEs) play an essential role in economic growth. COVID-19 severely affected this sector, given its dependence on logistics. Logistics 4.0 is a progressive and vital technology for the MSME sector in developed economies. However, certain inhibitors cause MSMEs to face criticality and difficulty when adopting Logistics 4.0. Therefore, the authors first identified fourteen inhibitors through a detailed structured literature review and then used the Delphi method to finalise the inhibitors for further analysis. Furthermore, the modified total interpretive structural modelling (M-TISM) technique was applied to identify the levels and interrelationships among the inhibitors. Subsequently, the inhibitors were categorised into four main clusters by their dependence and driving power using matrice d'impacts croises multiplication appliquee a un classment (MICMAC) analysis. This study reveals that MSMEs must prioritise five critical inhibitors during the Logistics 4.0 adoption process. The authors also develop five propositions. Timely action on the recommendations can help MSMEs owners, managers, and employees quickly adopt Logistics 4.0. Finally, the authors discuss theoretical and managerial implications and future research directions for a better understanding of adopting Logistics 4.0.

Automated summary

Micro, small, and medium enterprises (MSMEs) play a crucial role in economic growth, but they have been severely affected by COVID-19. Adopting Logistics 4.0 technology is vital for their development. However, there are challenges and inhibitors in the adoption process. This study identifies fourteen inhibitors and analyzes their interrelationships and levels using the Delphi method and modified total interpretive structural modeling technique. The findings highlight five critical inhibitors that MSMEs need to prioritize, and propose five propositions for their adoption of Logistics 4.0.