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Abstract:The implementation of Industry 4.0 has a far-reaching impact on industrial value creation. Studies on its opportunities and challenges for companies are still scarce. However, the high practical and theoretical relevance of digital and connected manufacturing technologies implies that it is essential to understand the underlying dynamics of their implementation. Thus, this study examines the relevance of Industry 4.0-related opportunities and challenges as drivers for Industry 4.0 implementation in the context of sustainability, taking a differentiated perspective on varying company sizes, industry sectors, and the company's role as an Industry 4.0 provider or user. A research model comprising relevant Industry 4.0-related opportunities and challenges as antecedents for its implementation is hypothesized. In order to test the model, partial least square structural equation modeling is applied for a sample of 746 German manufacturing companies from five industry sectors. The results show that strategic, operational, as well as environmental and social opportunities are positive drivers of Industry 4.0 implementation, whereas challenges with regard to competitiveness and future viability as well as organizational and production fit impede its progress. Moreover, it is shown that the perception of Industry 4.0-related opportunities and challenges as antecedents to Industry 4.0 implementation depends on different company characteristics.

The Industrial Internet of Things (IIoT) poses several implications on manufacturers in terms of economic, ecological, and social aspects referring to the Triple Bottom Line (TBL) of sustainable value creation. Due to its technical core, the current research focused on its technical fundamentals, whereas the economic discussion is still in its infancy. This paper aims at painting a comprehensive and structured picture of IIoT-related economic, ecological, and social benefits and challenges. For this purpose, we employ an exploratory multiple case study approach based on semi-structured expert interviews in 46 manufacturing companies from three leading German industries. Our study contributes to the sparse body of scientific IIoT literature by analysing the IIoT’s implications according to the TBL. We show that, in order to qualify for sustainable industrial value creation, the IIoT requires an extension of the established TBL by three further dimensions, i.e., technical integration, data and information, and public context.

The concept of "Industry 4.0" is expected to bring a multitude of benefits for industrial value creation. However, the associated risks hamper its implementation and lack a comprehensive overview. In response, the paper proposes a framework of risks in the context of Industry 4.0 that is related to the Triple Bottom Line of sustainability. The framework is developed from a literature review, as well as from 14 in-depth expert interviews. With respect to economic risks, the risks that are associated with high or false investments are outlined, as well as the threatened business models and increased competition from new market entrants. From an ecological perspective, the increased waste and energy consumption, as well as possible ecological risks related to the concept "lot size one", are described. From a social perspective, the job losses, risks associated with organizational transformation, and employee requalification, as well as internal resistance, are among the aspects that are considered. Additionally, risks can be associated with technical risks, e.g., technical integration, information technology (IT)-related risks such as data security, and legal and political risks, such as for instance unsolved legal clarity in terms of data possession. Conclusively, the paper discusses the framework with the extant literature, proposes managerial and theoretical implications, and suggests avenues for future research.

Purpose Industry 4.0 is assumed to yield extensive industry-spanning opportunities. However, exploiting these opportunities requires a targeted implementation of Industry 4.0. The purpose of this paper is to generate a deeper understanding of relevant implementation action. Existing recommendations are mostly general, highly aggregated and difficult to grasp. Yet, specific and concrete actions that need to be taken to accelerate the realization of Industry 4.0 are essential. Design/methodology/approach The article uses 13 semi-structured in-depth expert interviews as the source of empirical data. The interviews were conducted with managers from Industry 4.0-experienced German manufacturing companies. All interviews are analyzed using qualitative content analysis. Findings The study reveals relevant and targeted aspects for Industry 4.0 implementation: the development of Industry 4.0-specific know-how, securing financial resources, integrating employees into the implementation process and establishing an open-minded and flexible corporate culture. Further aspects include comprehensive planning processes, cooperation with external partners, proper handling of data interfaces, interdisciplinary communication, an adaptable organizational structure and data security. Research limitations/implications The paper is limited to German manufacturing enterprises and should be transferred to other industries and countries. Practical implications The study supports managers to effectively implement Industry 4.0 within their organizations and consequently benefit from Industry 4.0 and derives recommendations for future research. Originality/value The paper is among the first to give specific and concrete examples for lessons learned from Industry 4.0 implementation, directly obtained from industrial application.