Dynamic capabilities for smart manufacturing transformation by manufacturing enterprises

Lin, Tzu‐Chieh; Sheng, Margaret L.; Wang, Kung Jeng

doi:10.1080/19761597.2020.1769486

Cited by 40 publications

(33 citation statements)

References 60 publications

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“…Researchers have revealed that the determinants act as the dynamic capabilities to implement Industry 4.0 competently that enable SMEs to achieve the sustainable development goals. Lin et al. (2020) demonstrated a framework showing the determinants as dynamic capabilities that enable organizations to implement Industry 4.0 successfully.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Industry 4.0 implementation and Triple Bottom Line sustainability: An empirical study on small and medium manufacturing firms

Jayashree

Reza

Malarvizhi

et al. 2021

Heliyon

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Background The current level of industrialization has generated many challenges worldwide, including ecological hazards, climate change, and the overuse of non-renewable natural resources, thereby creating an increasing demand for achieving the goal of the Triple Bottom Line (TBL). In this regard, Industry 4.0 can be used as a crunch point to contribute to the production process that can help achieve sustainable development. Purpose While the Malaysian government proposed the “Industry4ward” approach to enhance technological adoption, there is scarce empirical evidence in the literature that validates SMEs for Industry 4.0. Using Dynamic Capability View (DCV), this study proposes a framework that includes core determinants like top management commitment, supply chain integration, and IT infrastructure, that can significantly influence Industry 4.0 implementation toward achieving TBL sustainability. Design/methodology/approach Employing simple random sampling, the study adopted a quantitative approach based on 199 useable respondent's feedback collected through a survey questionnaire of 900 employees from Malaysian SMEs. The statistical analysis was performed using Structural Equation Modeling (Partial Least Square, SmartPLS 3.3.2). Findings The results show that top management and IT infrastructure significantly impact Industry 4.0 implementation and sustainability. In contrast, the analysis also demonstrates that supply chain integration is insignificant to Industry 4.0 implementation in SMEs. The findings also indicate that the relationship between the determinants of Industry 4.0 and TBL sustainability can be mediated by the “effective implementation” of Industry 4.0. Recommendations The study highlights the practical consequences of the role and use of the determinants in Industry 4.0 implementation. Its findings help managers and policy-makers to optimize value creation to achieve sustainable development goals. Limitations and future research Focusing only on Malaysian manufacturing SMEs may restrict the generalization of the study; thus, a benchmarking analysis from other industrial settings is encouraged. The questionnaire-based survey is a further limitation of the study.

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Section: Theoretical Backgroundmentioning

confidence: 99%

Industry 4.0 implementation and Triple Bottom Line sustainability: An empirical study on small and medium manufacturing firms

Jayashree

Reza

Malarvizhi

et al. 2021

Heliyon

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“…Finally, compared with non-manufacturing enterprises, digital transformation is becoming important for manufacturing enterprises with the introduction of digital technology in production systems (Lin et al, 2020a). Digital transformation refers to the application of digital technology and is a key driver of manufacturing transformation (Lin et al, 2020b).…”

Section: The Moderating Role Of the Manufacturing Industrymentioning

confidence: 99%

Chief Executive Officers Entrepreneurial Orientation, Dynamic Capabilities, and Firm Performance: The Moderating Effect of the Manufacturing Industry

2021

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This study explores the implications of CEO entrepreneurial orientation for firm performance through corporate dynamic capabilities. It explores the moderating effects of firm industry type on the above indirect effect. Based on 188 matched sample data collected from vice chief executive officers (CEOs) of Chinese firms, this study found that CEO entrepreneurial orientation was positively related to corporate dynamic capabilities and firm performance and that corporate dynamic capabilities mediated the positive relationship between CEO entrepreneurial orientation and firm performance. Firm industry type moderated the direct effect of CEO entrepreneurial orientation on corporate dynamic capability, and the indirect effect of CEO entrepreneurial orientation on firm performance through corporate dynamic capability. Both direct and indirect effects were stronger in manufacturing enterprises. The findings enrich the CEO entrepreneurial orientation literature by extending the existing knowledge on its underlying mechanism and its impact on firm performance, as well as its boundary conditions.

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“…Smart transformation provides a key driver for manufacturing to smart manufacturing in particular [17,20]. It promotes the smart transformation of enterprises and helps them develop new business models to improve products, organizational structure, or processes [9,22], information and knowledge sharing [23], and seize market opportunities [11]. External knowledge impact on innovation performance and transformation [24].…”

Section: Smart Transformation In Enterprisesmentioning

confidence: 99%

“…Smart transformation has become the key to measure the enterprise capability and competitiveness. It involves organization design [8], dynamic capability identification [9], business model establishment [10,11], discovery of new strategies [12], and seizing market opportunities by introducing new digital technologies. It is also defined as "all aspects of business and society that fundamentally affect business and society by applying digital technology" [13].…”

Section: Introductionmentioning

confidence: 99%

Project-based maturity assessment model for smart transformation in Taiwanese enterprises

Lin

Wang

2021

PLoS ONE

Self Cite

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As smart technology proliferates, enterprises must engage not only in the transformation of intelligence but contend with pressure do so as soon as possible. Smart transformation is critical for manufacturing enterprises in the development of smart manufacturing. This study addressed the gap between maturity models and project management by designing an effective assessment framework for smart transformation. It adopts the Smart Industry Readiness Index, created by the Singapore Economic Development Board, as a maturity assessment model to analyze enterprises’ smart transformation and formulate project management strategies. Enterprises can use this model to examine the maturity level of their transformation and assess scope for improvement in their project strategies and implementation barriers. This study focuses on Taiwanese enterprises using data collected from 165 valid questionnaires and subjected to a cluster analysis. Enterprises were divided into three categories. The results reveal that, first, most enterprises’ smart transformation is at an immature or medium-maturity level, and is therefore amenable to further improvement. Second, inconsistent with research findings, many enterprises invest in transformation projects but fail to advance these projects to maturity. Third, most enterprises’ project management plans fail to meet actual transformation needs. Using the thematically oriented maturity model proposed in this study, Taiwanese enterprises can effectively evaluate the maturity of their transformation projects. In conclusion, the study highlights that Taiwanese enterprises must identify more effective external resources to strengthen their competitiveness.

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Dynamic capabilities for smart manufacturing transformation by manufacturing enterprises

Cited by 40 publications

References 60 publications

Industry 4.0 implementation and Triple Bottom Line sustainability: An empirical study on small and medium manufacturing firms

Industry 4.0 implementation and Triple Bottom Line sustainability: An empirical study on small and medium manufacturing firms

Chief Executive Officers Entrepreneurial Orientation, Dynamic Capabilities, and Firm Performance: The Moderating Effect of the Manufacturing Industry

Project-based maturity assessment model for smart transformation in Taiwanese enterprises

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