Classification of Small- and Medium-Sized Enterprises Based on the Level of Industry 4.0 Implementation

Abstract

Due to Industry 4.0 technologies, small- and medium-sized enterprises have a great opportunity to increase their competitiveness. However, the question remains as to whether they are truly able to implement such modern technologies faster and carry out digital transformation. The main aim of the paper is to classify small- and medium-sized enterprises into various groups, according to the level of implementation of Industry 4.0, using the Index of Industry 4.0. Based on the results of the cluster analysis, the small and medium enterprises are categorized into four different groups, according to the level of implementation of Industry 4.0. There are top Industry 4.0 technological enterprises, I4 start enterprises, noobs enterprises, and I4 advances enterprises. So far, the largest group consists of the small- and medium-sized enterprises that are just starting out with the introduction of Industry 4.0 technologies, such as IT infrastructure, digitalization (data, cloud, data analysis, and information systems), and sensors. On the other hand, the top I4 technological enterprises group is the least numerous. The analysis carried out comparing the small- and medium-sized enterprises with the large enterprises shows that the SMEs still have a lower level of Industry 4.0 implementation. This confirms the assumption that the large enterprises have greater opportunities to use new technologies and transform them into smart factories. However, this situation may change in the future if new technologies become more accessible, and SMEs are worth investing in Industry 4.0 in terms of the return on investment.

Economic Business Sustainability and Strengthening Human Resource Capacity Based on Increasing the Productivity of Small and Medium Enterprises (SMEs) in Makassar City, Indonesia

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