Industry 4.0: a review and analysis of contingency and performance effects

Purpose The purpose of this paper is to review the literature and offer a more generalizable empirical investigation on the performance impact of implementing Industry 4.0, and the way important contingency factors (plant size, multinational status, country context) affect implementation efforts. Design/methodology/approach Following a systematic literature review, the empirical research is based on a large-scale survey of 705 manufacturing plants from 22 countries. Structural equation modeling is employed to discover the relationships between the main constructs of interest, complemented with subgroup analyses to offer a more detailed understanding of the main effects. Findings We provide evidence that technologies enabling Industry 4.0 have a positive impact on operational performance, including cost, quality, delivery and flexibility performance. Results of the analyses further indicate that (1) larger firms invest more in implementing Industry 4.0 technologies, (2) manufacturing firms in less competitive countries, especially in the South-East Asian region invest significantly more effort than competitive countries, while (3) multinational companies have no advantage over local firms. Research limitations/implications The survey data employed in this study refers to the early years of companies embracing Industry 4.0 solutions, and thus does not contain the most recent advances in manufacturing technologies. Originality/value The paper represents one of the first studies in the literature to assess on a large-scale survey the performance impact of Industry 4.0 technologies, as well as the main contingency factors affecting the implementation of these technologies.

Automated summary

This study, based on a large-scale survey of 705 manufacturing plants from 22 countries, finds that implementing Industry 4.0 technologies has a positive impact on operational performance, including cost, quality, delivery, and flexibility. The research also suggests that the size of firms, competitiveness of countries, and multinational status can affect the implementation of Industry 4.0 technologies differently.