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Enhancing Competitiveness: Driving and Facilitating Factors for Industry 4.0 Adoption in Thai Manufacturing

Author

Listed:
  • Nuchjarin Intalar

    (Department of Computer Science, Faculty of Science and Technology, Thammasat University, Khlong Nueng 12120, Thailand)

  • Yasushi Ueki

    (Institute of Developing Economies, Chiba 261-8545, Japan)

  • Chawalit Jeenanunta

    (School of Management Technology, Sirindhorn International Institute of Technology, Thammasat University, Khlong Nueng 12120, Thailand)

Abstract

Adopting Industry 4.0 (I4.0) is inevitable for Thailand’s manufacturing sector to remain competitive because global markets increasingly demand higher quality, faster delivery, and greater customization. While firms need to enhance productivity and optimize resource utilization, they also need to reduce operation costs, which require advanced technologies and data-driven operations. However, successful adoption requires skilled human resources, which is challenging for small and medium-sized enterprises (SMEs). This research explores factors driving and facilitating the implementation of Industry 4.0 (I4.0) in Thai manufacturing firms among SMEs and large firms. We employed qualitative analysis using semi-structured interviews with SMEs and large manufacturing firms in Thailand. Five key factors emerged as crucial for I4.0 adoption: awareness of I4.0, strong and proactive support from top management, self-funding capabilities, and effective human resource development strategies. While large multinational enterprises (MNEs) possess more significant resources and capabilities to adopt I4.0 technologies, SMEs face considerable challenges. They require a strategic approach tailored to their unique needs and resources to develop a feasible I4.0 roadmap. Additionally, governments and industry associations can play a significant role by providing training, funding, and other resources to empower SMEs to embrace I4.0.

Suggested Citation

  • Nuchjarin Intalar & Yasushi Ueki & Chawalit Jeenanunta, 2024. "Enhancing Competitiveness: Driving and Facilitating Factors for Industry 4.0 Adoption in Thai Manufacturing," Economies, MDPI, vol. 12(8), pages 1-23, August.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:8:p:210-:d:1460179
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    References listed on IDEAS

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    1. 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.
    2. Vu Linh Toan Le & Tien Hoang Nguyen & Khanh Duy Pham, 2023. "What Drives Industry 4.0 Technologies Adoption? Evidence from a SEM-Neural Network Approach in the Context of Vietnamese Firms," Sustainability, MDPI, vol. 15(7), pages 1-32, March.
    3. Benjamin Saunders & Julius Sim & Tom Kingstone & Shula Baker & Jackie Waterfield & Bernadette Bartlam & Heather Burroughs & Clare Jinks, 2018. "Saturation in qualitative research: exploring its conceptualization and operationalization," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1893-1907, July.
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