Evaluating and Prioritizing the Barriers of Industry 4.0 Implementation in Indian SMEs: An ISM Approach

The Industry 4.0 (I4.0) technologies implementation by Indian small and medium-sized enterprises presents significant challenges, requiring them to overcome various barriers. While existing literature has identified common barriers, there is a bewildering regarding their interrelationships and practical implications for organizations. To bridge this knowledge gap, we utilize the interpretive structural modeling (ISM) methodology to uncover and examine the barriers to Industry 4.0 adoption and their interrelationships, specifically in the context of Indian SMEs. To further highlight the primary challenges that lie at the heart of this problem, we use MICMAC analysis. The framework of technology–organization–environment is used to classify the challenges. Our findings reveal that the “Lack of Government Regulations” and “Unawareness about Digital Infrastructure Deployment Benefits” are identified as root barriers. Interestingly, we find that the barrier labeled as “Impact on Future of Workforce” exhibits an unexpected pattern with high dependency but low driving power, which contradicts findings from previous research. On the basis of our analysis, we offer specific recommendations for managers and policymakers, emphasizing the importance of tackling these barriers effectively to ensure the successful and effective adoption of I4.0 by Indian SMEs.