An Empirical Analysis of Factors Influencing Industry 4.0 Implementation in Manufacturing SMEs

Emerging technologies and opportunities of the fourth industrial revolution and Industry 4.0 enable companies to become more digitized. Maturity models have been developed to help organisations to assess their readiness for Industry 4.0 across various dimensions. However, there is a lack of research addressing the relationships between such dimensions and their effect on business results. This article aims to investigate critical Industry 4.0 factors used to assess and improve the digital maturity of small and medium-sized manufacturing enterprises and analyse the relationship between these critical factors and their effect on product and service performance. The research utilises structural equation modelling to test the relationships between dimensions such as strategy and organisation, workforce development, smart factory, smart processes, and smart products and services based on the data of 123 manufacturing small and medium enterprises (SMEs) from Kazakhstan. The research identifies that for successful digital transformation, the utmost attention should be placed on developing a working strategy and adapting the organisational structure to support the transition.