Industry 4.0 and Business Policy Development: Strategic Imperatives for SME Performance

Abstract

Industry 4.0 presents companies with new prospects to renovate industrial manufacturing processes and increase value creation, has promised several optimizing strategies for improved business performance. The purpose of this research is to examine the relationship between innovation capability and employee capability on organizational performance among Small and Medium Scale industries entrepreneurs. Following a positivist research philosophy with a quantitative, cross-sectional descriptive study design, the study addressed three direct and two indirect relationships in the model. The research followed the expectation Resource-Based View Theory to test the theoretical model. Following stratified random sampling, this research using 384 SME entrepreneurs from the Selangor state of Malaysia. The study applied Smart PLS-SEM to analyze the data. The results show that SME firms' innovation capability and employee capability positively correlate with business performance. The study also shows the partial mediation effect of technology change on innovation capability and business performance and employee capability and business performance. Research extends practical and theoretical implications to the stakeholders of SMEs and businesses.JEL Classification: L25, L26, L29How to Cite:Govindarajo, N. S., Kumar M, D., Shaikh, E., Kumar, M., & Kumar, P. (2021). Industry 4.0 and Business Policy Development: Strategic Imperatives for SME Performance. Etikonomi, 20(2), 213 – xx. https://doi.org/10.15408/etk.v20i2.20143.

Impact of corporate governance and CEO remuneration on bank capitalization strategies and payout decision in income shocks period

“…So, previous findings suggest that the independence of the director and firm performance results will always be mixed. Consequently, the board size structure characteristic has a direct and positive influence on the performance of the company (Memon et al, 2019 ; Govindarajo et al, 2021 ; Klettner, 2021 ). According to the suggestion of the resource-based theory, decision-making had been improved due to more board independence, having the knowledge related to the different industries (Barney, 1991 ; Adams and Mehran, 2012 ).…”

Accounting Information Systems as Mediator for Digital Technology and Strategic Performance Interplay

“…In the contemporary era of Industry 4.0, digital technologies development and implementation have been growing to become one of the most trending subject matters in both academia and the scholarly area [1]. Industry 4.0 conceptualizes rapid transformation in industries, technologies, communal practices, and societal patterns in the 21st century due to growing interconnectivity and smart robotics [2]. Digital technology refers to the paradigm and collection of different modern and intelligent technologies in the period of Industry 4.0, including cloud computing, big-data analytics, and the IoT, which facilitate automation, connectivity, and communication [3].…”

“…In digitally driven industrialized systems, the latest Electronics 2023, 12, 1866 2 of 15 emerging technologies facilitate the adoption by firms of strategies for gathering information and data across product life cycles starting from material properties to development parameters [3]. Digital transformation brings innovative opportunities and challenges for the sustainable growth of electronics firms and boosts its strategic performance [2,4]. Therefore, businesses that participate in growing advanced technological opportunities and developments in industry and respond to challenges successively improve their digital abilities and become innovation leaders, which supports them in the improvement of their strategic performance in markets.…”

“…Digital technologies capable of leading strategic performance are currently under-explored. Strategic performance is an approach for performance monitoring, improvement, and measurement that supports plans and strategies throughout an organization to make sure that all goals and objectives are achieved [2]. It is a systematic approach that organizations use to apply their strategies across their teams and departments to ensure the achievement of business goals [8].…”

Impact of Authentic Leadership on Organizational Citizenship Behavior by Using The Mediating Effect of Psychological Ownership

“…It was found that leadership behaviors positively impact organizational citizenship behavior. It is specifically related to authentic leadership behaviors because these behaviors help in making an open and fair environment which directly affects employees" behaviors, raise levels of employee satisfaction, willingness to execute OCB (Avolio et al, 2004;and K. Cameron et al, 2003;Govindarajo et al, 2021). Afsar et al (2020) found that authentic leadership behaviors are positively related to OCB.…”