A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains

Purpose This paper aims to investigate the adoption barriers of Industry 4.0 in the Indonesian manufacturing supply chains. Design/methodology/approach The mixed method was deployed to validate the findings. First, the qualitative study was conducted based on the interviews. Then, the companies w...

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Main Authors: Fernando, Yudi, Wahyuni-TD, Ika Sari, Gui, Anderes, Ikhsan, Ridho Bramulya, Mergeresa, Fineke, Yuvaraj, Ganesan
Format: Article
Language:English
Published: Emerald Publisher 2022
Subjects:
Online Access:http://umpir.ump.edu.my/id/eprint/33595/7/A%20mixed-method%20study%20on%20the%20barriers%20of%20industry%204.0.pdf
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author Fernando, Yudi
Wahyuni-TD, Ika Sari
Gui, Anderes
Ikhsan, Ridho Bramulya
Mergeresa, Fineke
Yuvaraj, Ganesan
author_facet Fernando, Yudi
Wahyuni-TD, Ika Sari
Gui, Anderes
Ikhsan, Ridho Bramulya
Mergeresa, Fineke
Yuvaraj, Ganesan
author_sort Fernando, Yudi
collection UMP
description Purpose This paper aims to investigate the adoption barriers of Industry 4.0 in the Indonesian manufacturing supply chains. Design/methodology/approach The mixed method was deployed to validate the findings. First, the qualitative study was conducted based on the interviews. Then, the companies were approached using filter questions on the involvement in adopting industry 4.0 and its impact on the supply chain. Findings Based on the qualitative study, nine main barriers were found in the thematic analysis. Thus, to get a consensus on the barriers in the industry, the barrier indicators were tested using a structural equation model retrieved from 173 small and medium Indonesian manufacturing firms. Results indicate that five main barriers (e.g. unclear Industry 4.0 policy, higher-risk investment, insecure data sharing, lack of expertise and lack of incentive) are confirmed as the adoption barriers. Practical implications The successful adoption of supply chain integration with Industry 4.0 technology can strengthen the manufacturing sector and competitiveness. Therefore, this study can be a complimentary assessment to evaluate the Indonesia Industry 4.0 Readiness Index (INDI 4.0) and the effectiveness of the government support program. Originality/value The results can be used as the framework to foresee the successful implementation of smart manufacturing supply chain management and its integration. Therefore, the authors proposed the framework to foresee the successful implementation of smart manufacturing, supply chain management and integration.
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spelling UMPir335952022-08-29T04:24:30Z http://umpir.ump.edu.my/id/eprint/33595/ A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains Fernando, Yudi Wahyuni-TD, Ika Sari Gui, Anderes Ikhsan, Ridho Bramulya Mergeresa, Fineke Yuvaraj, Ganesan H Social Sciences (General) HF Commerce T Technology (General) Purpose This paper aims to investigate the adoption barriers of Industry 4.0 in the Indonesian manufacturing supply chains. Design/methodology/approach The mixed method was deployed to validate the findings. First, the qualitative study was conducted based on the interviews. Then, the companies were approached using filter questions on the involvement in adopting industry 4.0 and its impact on the supply chain. Findings Based on the qualitative study, nine main barriers were found in the thematic analysis. Thus, to get a consensus on the barriers in the industry, the barrier indicators were tested using a structural equation model retrieved from 173 small and medium Indonesian manufacturing firms. Results indicate that five main barriers (e.g. unclear Industry 4.0 policy, higher-risk investment, insecure data sharing, lack of expertise and lack of incentive) are confirmed as the adoption barriers. Practical implications The successful adoption of supply chain integration with Industry 4.0 technology can strengthen the manufacturing sector and competitiveness. Therefore, this study can be a complimentary assessment to evaluate the Indonesia Industry 4.0 Readiness Index (INDI 4.0) and the effectiveness of the government support program. Originality/value The results can be used as the framework to foresee the successful implementation of smart manufacturing supply chain management and its integration. Therefore, the authors proposed the framework to foresee the successful implementation of smart manufacturing, supply chain management and integration. Emerald Publisher 2022-03-29 Article PeerReviewed pdf en http://umpir.ump.edu.my/id/eprint/33595/7/A%20mixed-method%20study%20on%20the%20barriers%20of%20industry%204.0.pdf Fernando, Yudi and Wahyuni-TD, Ika Sari and Gui, Anderes and Ikhsan, Ridho Bramulya and Mergeresa, Fineke and Yuvaraj, Ganesan (2022) A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains. Journal of Science and Technology Policy Management, ahead-of-pri. pp. 1-18. ISSN 2053-4620. (Published) https://doi.org/10.1108/JSTPM-10-2021-0155 https://doi.org/10.1108/JSTPM-10-2021-0155
spellingShingle H Social Sciences (General)
HF Commerce
T Technology (General)
Fernando, Yudi
Wahyuni-TD, Ika Sari
Gui, Anderes
Ikhsan, Ridho Bramulya
Mergeresa, Fineke
Yuvaraj, Ganesan
A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains
title A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains
title_full A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains
title_fullStr A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains
title_full_unstemmed A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains
title_short A mixed-method study on the barriers of industry 4.0 adoption in the Indonesian SMEs manufacturing supply chains
title_sort mixed method study on the barriers of industry 4 0 adoption in the indonesian smes manufacturing supply chains
topic H Social Sciences (General)
HF Commerce
T Technology (General)
url http://umpir.ump.edu.my/id/eprint/33595/7/A%20mixed-method%20study%20on%20the%20barriers%20of%20industry%204.0.pdf
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