Re-Thinking Industry 4.0 Effect on Competitive Forces: Empirical Study on Innovation

Abstract

Sustaining a competitive position on the market has become crucial in order to survive in the dynamic environment under the influence of Industry 4.0. Industrial and service sectors have been affected by new technologies, such as automation, robotization, VR, AR or Big data, and their strategies towards future innovation and focus need to be reevaluated. This requires a revision of theoretical models that assess the external environment and following opportunities and threats. Our original study of 573 Slovak companies presents an analysis of Porter’s five competitive forces in the context of innovation activities and perceived impact of Industry 4.0 on companies. The research results provide a deep insight on the relevance of company size, maturity or sector to the different perspectives of the P5F model, as well as make clear the impact of each force on company measures and activities conducted in recent years. Our findings point to the strong technology push and main focus on product innovation, while reveal a paradigm shift in perceiving the power of suppliers. Results of our study lead to practical implications and enrich the theory on the relevance of strategic analysis in current era.