Investigating the Impact of Industry 4.0 Technology through a TOE-Based Innovation Model

Abstract

Technological change has drastically shaped developments in the manufacturing and service industries. Integrating Industry 4.0 technologies in business practice is an emerging trend for future-oriented enterprises. By linking the TOE (technology-organization-environment) framework with product innovation, process innovation, and company performance, this research proposes a TOE-based innovation model to investigate Industry 4.0. The test results identified that Industry 4.0 technology adoption can be determined by compatibility, top management support, and competitive pressures, unexpectedly, not cost or employee capability; technology adoption can only indirectly influence company performance through mediation effects of product and process innovation. Results also revealed that industry type and global trade could play moderation roles in the technology adoption process: compared to the manufacturing industry, employee capability seems to be more influential on technology adoption in the service industry; global trade activities cannot significantly impact the technology adoption process, but trade companies are more likely to achieve more process innovation after such adoption. This study can enrich the theoretical bases of Industry 4.0 and confer a better understanding of the ongoing technological revolution in developing countries, which may offer some new insights for practitioners and academics.

Prioritization of critical factors toward Industry 4.0 adoption in service industries: an emerging economy perspective

“…This indicates that implementing Industry 4.0 in the service industries may depend more on employees' skills, participation, knowledge and capacities. Such findings stipulate that employee capability is predominantly more vital in technology adoption in the service industry than manufacturing (Zhong and Moon, 2023). Thus, human expertise and awareness of information technology are necessary for timely decision-making and implementation of the Industry 4.0 concept (Glock et al ., 2019; Rane and Narvel, 2019).…”

Assessing the Impact of Digital Technologies on Energy Efficiency: The Role of OFDI and Virtual Agglomeration

“…They will be motivated to keep up with foreign trading partners in technological innovation. Through various channels, they can absorb the host country's advanced technology and management experience in energy conservation and emission reduction, and realize the reverse spillover of the host country's technology (Zhong and Moon, 2023). For example, enterprises in the home country embedded in the R&D resource-intensive areas and related industrial clusters of the host country can absorb the advanced environmental protection technologies of the host country using resource sharing and technology cluster mechanisms; and then, through the flow of talents and the feedback mechanism of advanced technological achievements, a win-win situation of economic development and environmental protection forms in the home country (Kogut and Chang, 1991; Gong and You, 2022; Ma and Gao, 2022).…”

Technology-driven energy revolution: the impact of digital technology on energy efficiency and its mechanism

“…They will be motivated to keep up with foreign trading partners in technological innovation ability. Through various channels, they can absorb the host country's advanced technology and management experience in energy conservation and emission reduction and realize the reverse spillover of the host country's technology (Zhong and Moon, 2023). For example, enterprises in the home country embedded in the R&D resource-intensive areas and related industrial clusters of the host country absorb the advanced environmental protection technologies of the host country using resource sharing and technology cluster mechanisms and then the home country through the flow of talents and the feedback mechanism of advanced technological achievements, forming a win-win situation of economic development and environmental protection (Kogut and Chang, 1991;Gong and You, 2022;Ma and Gao, 2022).…”