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Challenges of Industry 4.0 Technology Adoption for SMEs: The Case of Japan

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  • Martin Prause

    (Institute for Industrial Organization, WHU—Otto Beisheim School of Management, 56179 Vallendar, Germany)

Abstract

In the light of several national advanced manufacturing strategies such as Industry 4.0 in Germany or the Made in China 2025 initiative in China, this article examines the challenges of Industry 4.0 adoption of Japanese small and medium-sized manufacturing firms. A technology adoption model for Industry 4.0 is developed and empirically tested with 38 manufacturing companies. The results yield that the market uncertainty of the firm’s business is a significant driver for adoption in the short, medium, and long-term. Relative competitive advantage matters in the short term and top management support in the long-term. No support has been identified concerning advanced manufacturing complexity and market transparency of Industry 4.0 solutions.

Suggested Citation

  • Martin Prause, 2019. "Challenges of Industry 4.0 Technology Adoption for SMEs: The Case of Japan," Sustainability, MDPI, vol. 11(20), pages 1-13, October.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:20:p:5807-:d:278259
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    17. Virmani, Naveen & Sharma, Shikha & Kumar, Anil & Luthra, Sunil, 2023. "Adoption of industry 4.0 evidence in emerging economy: Behavioral reasoning theory perspective," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
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