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Smart factory adoption in small and medium-sized enterprises: Empirical evidence of manufacturing industry in Korea

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  • Won, Jeong Yeon
  • Park, Min Jae

Abstract

This paper examines the factors and effects of smart factory adoption of Small and Medium-sized Enterprises (SMEs). With the emergence of the 4th industrial revolution, the use of information technologies has been gradually emphasized in order to improve the company's competence in manufacturing. Moreover, observations from various cases of government support and academic research have reportedly been stressing the impact of the information technologies on the economy. But there is little research about the adoption intentions and implementation for the SMEs. An analysis of the 2012 SMEs in Korea shows that the experienced benefits of prior information and the unique characteristics of SMEs do not have a significant influence on the adoption intention of smart factory. On the contrary, the existing information investments and efforts appear to create a large amount of resistance. This study aims to help executives and policymakers make the right decisions by understanding the meaning of smart factories as well as the conditions and impact of innovations that affect SMEs.

Suggested Citation

  • Won, Jeong Yeon & Park, Min Jae, 2020. "Smart factory adoption in small and medium-sized enterprises: Empirical evidence of manufacturing industry in Korea," Technological Forecasting and Social Change, Elsevier, vol. 157(C).
    • Handle: RePEc:eee:tefoso:v:157:y:2020:i:c:s0040162520309434
    DOI: 10.1016/j.techfore.2020.120117
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    4. Soluk, Jonas & Decker-Lange, Carolin & Hack, Andreas, 2023. "Small steps for the big hit: A dynamic capabilities perspective on business networks and non-disruptive digital technologies in SMEs," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
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    6. Hong-Long Chen, 2021. "Impact of Industry 4.0 on Corporate Financial Performance: A Moderated Mediation Model," Sustainability, MDPI, vol. 13(11), pages 1-16, May.
    7. Radhwan Sneesl & Yusmadi Yah Jusoh & Marzanah A. Jabar & Salfarina Abdullah, 2022. "Revising Technology Adoption Factors for IoT-Based Smart Campuses: A Systematic Review," Sustainability, MDPI, vol. 14(8), pages 1-27, April.
    8. Maarit Tihinen & Ari Pikkarainen & Jukka Joutsenvaara, 2021. "Digital Manufacturing Challenges Education—SmartLab Concept as a Concrete Example in Tackling These Challenges," Future Internet, MDPI, vol. 13(8), pages 1-16, July.
    9. Rok Lee, 2021. "The Effects of Smart Factory Operational Strategies and System Management on the Innovative Performance of Small- and Medium-Sized Manufacturing Firms," Sustainability, MDPI, vol. 13(6), pages 1-17, March.
    10. Paiola, Marco & Schiavone, Francesco & Khvatova, Tatiana & Grandinetti, Roberto, 2021. "Prior knowledge, industry 4.0 and digital servitization. An inductive framework," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    11. Yen Sheng Tsai & Wei-Hsi Hung, 2023. "A low-cost intelligent tracking system for clothing manufacturers," Journal of Intelligent Manufacturing, Springer, vol. 34(2), pages 473-491, February.
    12. Olusegun Sadiq & Dieu Hack-Polay & Ted Fuller & Mahfuzur Rahman, 2022. "Barriers to the Effective Integration of Developed ICT for SMEs in Rural NIGERIA," Businesses, MDPI, vol. 2(4), pages 1-26, November.
    13. Jang, Hyunmi & Haddoud, Mohamed Yacine & Roh, Saeyeon & Onjewu, Adah-Kole Emmanuel & Choi, Taeeun, 2023. "Implementing smart factory: A fuzzy-set analysis to uncover successful paths," Technological Forecasting and Social Change, Elsevier, vol. 195(C).
    14. Su, Jingqin & Zhang, Yajie & Wu, Xianyun, 2023. "How market pressures and organizational readiness drive digital marketing adoption strategies' evolution in small and medium enterprises," Technological Forecasting and Social Change, Elsevier, vol. 193(C).
    15. Bhatia, Purvee & Diaz-Elsayed, Nancy, 2023. "Facilitating decision-making for the adoption of smart manufacturing technologies by SMEs via fuzzy TOPSIS," International Journal of Production Economics, Elsevier, vol. 257(C).

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