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Technology vs. workers: the case of Italy’s Industry 4.0 factories

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  • Cirillo, Valeria
  • Rinaldini, Matteo
  • Staccioli, Jacopo
  • Virgillito, Maria Enrica

Abstract

This article explores the relationship between the introduction of Industry 4.0 automation systems, the organisation of the work process, and the implications for employment, skill composition, power relations, and workers’ intervention authority. We investigate the undergoing technological and organisational transformation in three high-tech automotive factories in Italy and we find that the push towards sheer automation does not constitute the most relevant process under way. Rather, more effort is devoted to digitalisation and interconnection. Technological change appears to be strategically used by firms to achieve a lean system and a tense, demand-led, production flow. In terms of human-machine relationship and workers’ authority to intervene on the production process, our case studies show that Industry 4.0 reduces room for employees’ autonomy and increases forms of management control.

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  • Cirillo, Valeria & Rinaldini, Matteo & Staccioli, Jacopo & Virgillito, Maria Enrica, 2021. "Technology vs. workers: the case of Italy’s Industry 4.0 factories," Structural Change and Economic Dynamics, Elsevier, vol. 56(C), pages 166-183.
    • Handle: RePEc:eee:streco:v:56:y:2021:i:c:p:166-183
    DOI: 10.1016/j.strueco.2020.09.007
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    Cited by:

    1. Guendalina Anzolin, 2021. "Automation and its Employment Effects: A Literature Review of Automotive and Garment Sectors," JRC Working Papers on Labour, Education and Technology 2021-16, Joint Research Centre.
    2. Angelo Moro & Maria Enrica Virgillito, 2022. "Towards Factory 4.0? Convergence and divergence of lean models in Italian automotive plants," International Journal of Automotive Technology and Management, Inderscience Enterprises Ltd, vol. 22(2), pages 245-271.
    3. Roberto Antonietti & Luca Cattani & Francesca Gambarotto & Giulio Pedrini, 2021. "Education, routine, and complexity-biased Knowledge Enabling Technologies: Evidence from Emilia-Romagna, Italy," Discussion Paper series in Regional Science & Economic Geography 2021-07, Gran Sasso Science Institute, Social Sciences, revised May 2021.
    4. Jacopo Staccioli & Maria Enrica Virgillito, 2021. "Back to the past: the historical roots of labor-saving automation," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(1), pages 27-57, March.
    5. Montobbio, Fabio & Staccioli, Jacopo & Virgillito, Maria Enrica & Vivarelli, Marco, 2022. "Robots and the origin of their labour-saving impact," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    6. Nadeem, Kashif & Wong, Sut I. & Za, Stefano & Venditti, Michelina, 2024. "Digital transformation and industry 4.0 employees: Empirical evidence from top digital nations," Technology in Society, Elsevier, vol. 76(C).
    7. Beier, Grischa & Matthess, Marcel & Shuttleworth, Luke & Guan, Ting & de Oliveira Pereira Grudzien, David Iubel & Xue, Bing & Pinheiro de Lima, Edson & Chen, Ling, 2022. "Implications of Industry 4.0 on industrial employment: A comparative survey from Brazilian, Chinese, and German practitioners," Technology in Society, Elsevier, vol. 70(C).
    8. Fabio Montobbio & Jacopo Staccioli & Maria Enrica Virgillito & Marco Vivarelli, 2021. "Labour-saving automation and occupational exposure: a text-similarity measure," DISCE - Quaderni del Dipartimento di Politica Economica dipe0021, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    9. Jacopo Staccioli & Maria Enrica Virgillito, 2020. "The present, past, and future of labor-saving technologies," LEM Papers Series 2020/37, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Battaglia, Daniele & Galati, Francesco & Molinaro, Margherita & Pessot, Elena, 2023. "Full, hybrid and platform complementarity: Exploring the industry 4.0 technology-performance link," International Journal of Production Economics, Elsevier, vol. 263(C).
    11. Jasmine Mondolo, 2022. "The composite link between technological change and employment: A survey of the literature," Journal of Economic Surveys, Wiley Blackwell, vol. 36(4), pages 1027-1068, September.
    12. Yunus Zengin & Serkan Naktiyok & Erdoğan Kaygın & Onur Kavak & Ethem Topçuoğlu, 2021. "An Investigation upon Industry 4.0 and Society 5.0 within the Context of Sustainable Development Goals," Sustainability, MDPI, vol. 13(5), pages 1-16, March.

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    More about this item

    Keywords

    Industry 4.0; Technological paradigms; Organisational change; Lean systems; Autonomy; Discretion;
    All these keywords.

    JEL classification:

    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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