IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v243y2022ics0925527321002991.html
   My bibliography  Save this article

Curse or Blessing? Exploring risk factors of digital technologies in industrial operations

Author

Listed:
  • Kessler, Melanie
  • Arlinghaus, Julia C.
  • Rosca, Eugenia
  • Zimmermann, Manuel

Abstract

Both practitioners and scholars emphasise the benefits of Industry 4.0 (I4.0) technology implementation, such as increased transparency and the availability of real-time data in operations processes. Current literature on I4.0 technologies tends to overemphasise the positive impact and transformational capabilities of digital technologies while there is little focus on evaluating potential risks associated with their adoption in industrial operations. An understanding of how supply chain risks are perceived in digitalisation projects within industrial operations and an understanding of decision-makers' responses to different types of risks has important managerial implications. Current literature, however, lacks systematic empirical evidence on the implementation of I4.0 applications and related risk factors. This study aims to address this research gap by exploring the relationship between I4.0 technologies and supply chain risks based on empirical evidence from 300 case studies of industrial practice in Germany and fifty-three interviews with relevant managers from selected use cases and with general experts in this field. Our findings show that digital technologies are frequently adopted to address certain existing supply chain risks but that their implementation introduces new sources of risks (e.g. cyber risks). Based on qualitative data analysis and drawing on Normal Accident Theory, we propose a framework to explicate the drivers and contingency factors of new sources of supply chain risks in the context of Industry 4.0 technologies. Practical recommendations are provided for supply chain managers to guide the process of managing supply chain risks based on the technological life cycle.

Suggested Citation

  • Kessler, Melanie & Arlinghaus, Julia C. & Rosca, Eugenia & Zimmermann, Manuel, 2022. "Curse or Blessing? Exploring risk factors of digital technologies in industrial operations," International Journal of Production Economics, Elsevier, vol. 243(C).
    • Handle: RePEc:eee:proeco:v:243:y:2022:i:c:s0925527321002991
    DOI: 10.1016/j.ijpe.2021.108323
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527321002991
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2021.108323?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Julia C. Bendul & Mathias Knollman, 2016. "The human factor in production planning and control: considering human needs in computer aided decision-support systems," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 30(5), pages 346-368.
    2. Taylor, Margaret & Taylor, Andrew, 2012. "The technology life cycle: Conceptualization and managerial implications," International Journal of Production Economics, Elsevier, vol. 140(1), pages 541-553.
    3. Tang, Christopher & Tomlin, Brian, 2008. "The power of flexibility for mitigating supply chain risks," International Journal of Production Economics, Elsevier, vol. 116(1), pages 12-27, November.
    4. Loch, Christoph H. & Wu, Yaozhong, 2007. "Behavioral Operations Management," Foundations and Trends(R) in Technology, Information and Operations Management, now publishers, vol. 1(3), pages 121-232, December.
    5. Fosso Wamba, Samuel & Akter, Shahriar & Edwards, Andrew & Chopin, Geoffrey & Gnanzou, Denis, 2015. "How ‘big data’ can make big impact: Findings from a systematic review and a longitudinal case study," International Journal of Production Economics, Elsevier, vol. 165(C), pages 234-246.
    6. Julian Marius Müller & Daniel Kiel & Kai-Ingo Voigt, 2018. "What Drives the Implementation of Industry 4.0? The Role of Opportunities and Challenges in the Context of Sustainability," Sustainability, MDPI, vol. 10(1), pages 1-24, January.
    7. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov, 2019. "The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 829-846, February.
    8. Hendrik S. Birkel & Johannes W. Veile & Julian M. Müller & Evi Hartmann & Kai-Ingo Voigt, 2019. "Development of a Risk Framework for Industry 4.0 in the Context of Sustainability for Established Manufacturers," Sustainability, MDPI, vol. 11(2), pages 1-27, January.
    9. F. Brocal & C. González & D. Komljenovic & P. F. Katina & Miguel A. Sebastián, 2019. "Emerging Risk Management in Industry 4.0: An Approach to Improve Organizational and Human Performance in the Complex Systems," Complexity, Hindawi, vol. 2019, pages 1-13, June.
    10. Li Da Xu & Eric L. Xu & Ling Li, 2018. "Industry 4.0: state of the art and future trends," International Journal of Production Research, Taylor & Francis Journals, vol. 56(8), pages 2941-2962, April.
    11. Schlüter, Florian & Hetterscheid, Endric, 2017. "Supply chain process oriented technology-framework for industry 4.0," Chapters from the Proceedings of the Hamburg International Conference of Logistics (HICL), in: Kersten, Wolfgang & Blecker, Thorsten & Ringle, Christian M. (ed.), Digitalization in Supply Chain Management and Logistics: Smart and Digital Solutions for an Industry 4.0 Environment. Proceedings of the Hamburg Inter, volume 23, pages 275-299, Hamburg University of Technology (TUHH), Institute of Business Logistics and General Management.
    12. Bendul, Julia C. & Skorna, Alexander C.H., 2016. "Exploring impact factors of shippers’ risk prevention activities: A European survey in transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 90(C), pages 206-223.
    13. Kevin P. Scheibe & Jennifer Blackhurst, 2018. "Supply chain disruption propagation: a systemic risk and normal accident theory perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 43-59, January.
    14. Samayita Guha & Subodha Kumar, 2018. "Emergence of Big Data Research in Operations Management, Information Systems, and Healthcare: Past Contributions and Future Roadmap," Production and Operations Management, Production and Operations Management Society, vol. 27(9), pages 1724-1735, September.
    15. Michael Gibbert & Winfried Ruigrok & Barbara Wicki, 2008. "What passes as a rigorous case study?," Strategic Management Journal, Wiley Blackwell, vol. 29(13), pages 1465-1474, December.
    16. Antti Saaksvuori & Anselmi Immonen, 2008. "Product Lifecycle Management," Springer Books, Springer, number 978-3-540-78172-1, December.
    17. Wanda J. Orlikowski, 1992. "The Duality of Technology: Rethinking the Concept of Technology in Organizations," Organization Science, INFORMS, vol. 3(3), pages 398-427, August.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wang, Xinxin & Xu, Zeshui & Qin, Yong & Skare, Marinko, 2022. "Innovation, the knowledge economy, and green growth: Is knowledge-intensive growth really environmentally friendly?," Energy Economics, Elsevier, vol. 115(C).
    2. Latifa Benhamou & Samir Lamouri & Patrick Burlat & Vincent Giard, 2023. "Digital Twin: An Added Value for Digital CONWIP in the Context of Industry 4.0," Sustainability, MDPI, vol. 15(13), pages 1-18, June.
    3. Padhi, Sidhartha S. & Mukherjee, Soumyatanu & Edwin Cheng, T.C., 2024. "Optimal investment decision for industry 4.0 under uncertainties of capability and competence building for managing supply chain risks," International Journal of Production Economics, Elsevier, vol. 267(C).
    4. Hamann-Lohmer, Jacob & Bendig, Miriam & Lasch, Rainer, 2023. "Investigating the impact of digital transformation on relationship and collaboration dynamics in supply chains and manufacturing networks – A multi-case study," International Journal of Production Economics, Elsevier, vol. 262(C).
    5. Agnieszka A. Tubis & Katarzyna Grzybowska & Bartosz Król, 2023. "Supply Chain in the Digital Age: A Scientometric–Thematic Literature Review," Sustainability, MDPI, vol. 15(14), pages 1-25, July.
    6. Uddin, Mohammad Rajib & Akter, Shahriar & Lee, Wai Jin Thomas, 2024. "Developing a data breach protection capability framework in retailing," International Journal of Production Economics, Elsevier, vol. 271(C).
    7. Yang, Yefei & Yee, Rachel W.Y., 2022. "The effect of process digitalization initiative on firm performance: A dynamic capability development perspective," International Journal of Production Economics, Elsevier, vol. 254(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tao, Zhibin & Chao, Jiaxiao, 2024. "Unlocking new opportunities in the industry 4.0 era, exploring the critical impact of digital technology on sustainable performance and the mediating role of GSCM practices," Innovation and Green Development, Elsevier, vol. 3(3).
    2. Büchi, Giacomo & Cugno, Monica & Castagnoli, Rebecca, 2020. "Smart factory performance and Industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 150(C).
    3. Piccarozzi, Michela & Silvestri, Cecilia & Aquilani, Barbara & Silvestri, Luca, 2022. "Is this a new story of the ‘Two Giants’? A systematic literature review of the relationship between industry 4.0, sustainability and its pillars," Technological Forecasting and Social Change, Elsevier, vol. 177(C).
    4. K. Katsaliaki & P. Galetsi & S. Kumar, 2022. "Supply chain disruptions and resilience: a major review and future research agenda," Annals of Operations Research, Springer, vol. 319(1), pages 965-1002, December.
    5. Acciarini, Chiara & Cappa, Francesco & Boccardelli, Paolo & Oriani, Raffaele, 2023. "How can organizations leverage big data to innovate their business models? A systematic literature review," Technovation, Elsevier, vol. 123(C).
    6. Dmitry Ivanov, 2022. "Viable supply chain model: integrating agility, resilience and sustainability perspectives—lessons from and thinking beyond the COVID-19 pandemic," Annals of Operations Research, Springer, vol. 319(1), pages 1411-1431, December.
    7. Ghadimi, Pezhman & Donnelly, Oisin & Sar, Kubra & Wang, Chao & Azadnia, Amir Hossein, 2022. "The successful implementation of industry 4.0 in manufacturing: An analysis and prioritization of risks in Irish industry," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    8. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    9. Menti, Federica & Romero, David & Jacobsen, Peter, 2023. "A technology assessment and implementation model for evaluating socio-cultural and technical factors for the successful deployment of Logistics 4.0 technologies," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    10. Artur Pollak & Agata Hilarowicz & Maciej Walczak & Damian Gąsiorek, 2020. "A Framework of Action for Implementation of Industry 4.0. an Empirically Based Research," Sustainability, MDPI, vol. 12(14), pages 1-16, July.
    11. Olumide Emmanuel Oluyisola & Fabio Sgarbossa & Jan Ola Strandhagen, 2020. "Smart Production Planning and Control: Concept, Use-Cases and Sustainability Implications," Sustainability, MDPI, vol. 12(9), pages 1-29, May.
    12. Bai, Chunguang & Dallasega, Patrick & Orzes, Guido & Sarkis, Joseph, 2020. "Industry 4.0 technologies assessment: A sustainability perspective," International Journal of Production Economics, Elsevier, vol. 229(C).
    13. Sundarakani, Balan & Ajaykumar, Aneesh & Gunasekaran, Angappa, 2021. "Big data driven supply chain design and applications for blockchain: An action research using case study approach," Omega, Elsevier, vol. 102(C).
    14. Claudio Vitari & Elisabetta Raguseo, 2019. "Big data analytics business value and firm performance: Linking with environmental context," Post-Print hal-02293765, HAL.
    15. Pfaff, Yuko Melanie & Birkel, Hendrik & Hartmann, Evi, 2023. "Supply chain governance in the context of industry 4.0: Investigating implications of real-life implementations from a multi-tier perspective," International Journal of Production Economics, Elsevier, vol. 260(C).
    16. Belhadi, Amine & Kamble, Sachin S. & Venkatesh, Mani & Chiappetta Jabbour, Charbel Jose & Benkhati, Imane, 2022. "Building supply chain resilience and efficiency through additive manufacturing: An ambidextrous perspective on the dynamic capability view," International Journal of Production Economics, Elsevier, vol. 249(C).
    17. Barbara Aquilani & Michela Piccarozzi & Tindara Abbate & Anna Codini, 2020. "The Role of Open Innovation and Value Co-creation in the Challenging Transition from Industry 4.0 to Society 5.0: Toward a Theoretical Framework," Sustainability, MDPI, vol. 12(21), pages 1-21, October.
    18. Giuseppe Fragapane & Dmitry Ivanov & Mirco Peron & Fabio Sgarbossa & Jan Ola Strandhagen, 2022. "Increasing flexibility and productivity in Industry 4.0 production networks with autonomous mobile robots and smart intralogistics," Annals of Operations Research, Springer, vol. 308(1), pages 125-143, January.
    19. Subodha Kumar & Rakesh R. Mallipeddi, 2022. "Impact of cybersecurity on operations and supply chain management: Emerging trends and future research directions," Production and Operations Management, Production and Operations Management Society, vol. 31(12), pages 4488-4500, December.
    20. Mujahid Ghouri, Arsalan & Mani, Venkatesh & Jiao, Zhilun & Venkatesh, V.G. & Shi, Yangyan & Kamble, Sachin S., 2021. "An empirical study of real-time information-receiving using industry 4.0 technologies in downstream operations," Technological Forecasting and Social Change, Elsevier, vol. 165(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:proeco:v:243:y:2022:i:c:s0925527321002991. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/ijpe .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.