LATAM and Spanish SME barriers to Industry 4.0

Abstract

PurposeExisting studies are scarce, especially on the Industry 4.0 application to firms' innovation and competitiveness, and even more on the application to LATAM and Spanish SMEs. This paper tries to fill this gap by explaining the results of applying a systematic model, to understand which are the SMEs' strengths and weaknesses in relation to the Industry 4.0 transformation.Design/methodology/approachA systematic methodology involving documentation analysis, visits to the companies, interviews with employees and managers, making a preliminary diagnosis, crossing their needs with the enablers that can apply. The fieldwork was carried out during a two month period (2019), on a target sample of 22 SMEs operating under industrial productive activity already exporting or planning their internationalization toward LATAM regions.FindingsThere are relevant barriers that need to be overcome in order to enter Industry 4.0 and, in this specific analysis, the following major classification was obtained: (1) Technological barrier, (2) Training barrier, (3) Economic barrier and (4) Contextual barrier.Originality/valueThis paper provides new insights and sets a starting point regarding LATAM and Spanish’ Industry 4.0 situation, while contributing to the SMEs competitiveness by providing deeper understanding of the barriers and limitations in adopting Industry 4.0, pointing out some implications and suggestions for organizations to implement.

Extending the UTAUT model to understand the barriers towards SME digitalization

“…Furthermore, this finding revealed the importance of the CEO's attitude towards technology adoption (Abdullah et al 2013;Lorente-Martínez et al, 2020). Indeed, a positive attitude increases the chance of trying innovative systems, particularly in SMEs, to the extent that in these organizations, the CEO or the manager is the main decision-maker (Duan et al, 2012). Consequently, this causal relationship has been studied, and the results indicate that managers' perceptions and attitudes towards a digital system are strongly associated with its performance expectancy, which is a key parameter for SMEs due to their reduced margins (Chuang, 2007).…”

“…Therefore, there is a need to clarify digitalization in the context of smaller organizations or SMEs (Andersen et al, 2022;Eller et al, 2020;Li et al, 2018). In contrast with large firms, SMEs' technology readiness is inferior, vulnerabilities are higher and challenges are more apparent (De Lucas Ancillo et al, 2021). Still, SMEs contribute much to the economic growth of countries worldwide (The World Bank, 2021).…”

Comparative analysis of national innovation systems: Implications for SMEs' adoption of fourth industrial revolution technologies in developing and developed countries

“…On that note, our findings further indicate that SMEs in developed countries are the ones interacting with customers and solution providers. In developing countries, it is noted that there is a lack of interaction between SMEs and customers (De Lucas Ancillo et al, 2022). However, of interest are the Competence Centers noted in developed countries.…”

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“…On that note, our findings further indicate that SMEs in developed countries are the ones interacting with customers and solution providers. In developing countries, it is noted that there is a lack of interaction between SMEs and customers (De Lucas Ancillo et al, 2022). However, of interest are the Competence Centers noted in developed countries.…”