What Drives I4.0 Adoption? Establishing the Importance of Strategy

Abstract

This article investigates the adoption patterns of Industry 4.0 (I4.0) technologies in the automotive component sector and links I4.0 adoption to competitive strategies. Analysis of survey data concerning 288 automotive suppliers reveals that most firms currently focus on implementing real-time collection and analysis of production data (i.e., the Internet of Things, Big Data, and Artificial Intelligence), while other technologies, such as additive manufacturing and blockchain, are infrequently adopted. I4.0 adoption is associated with a simultaneous strategic emphasis on cost, quality, and delivery, thus suggesting automotive suppliers look at I4.0 as a mean to overcome performance tradeoffs. Findings also confirm that small- and medium-sized firms are less likely to adopt I4.0. Based on these results, implications for academics, managers, and policymakers are suggested.