IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i7p5969-d1111273.html
   My bibliography  Save this article

What Drives Industry 4.0 Technologies Adoption? Evidence from a SEM-Neural Network Approach in the Context of Vietnamese Firms

Author

Listed:
  • Vu Linh Toan Le

    (Faculty of Finance and Banking, Van Lang University, Ho Chi Minh City 70000, Vietnam)

  • Tien Hoang Nguyen

    (Faculty of Finance and Banking, Van Lang University, Ho Chi Minh City 70000, Vietnam)

  • Khanh Duy Pham

    (School of Banking, University of Economics Ho Chi Minh City, Ho Chi Minh City 70000, Vietnam)

Abstract

The development of the Industrial Revolution 4.0 has far-reaching effects on all aspects of life, the economy, and society, bringing various growth opportunities for businesses. However, businesses are still hesitant to apply these new technologies. On a research sample from a survey of 396 Vietnamese enterprises, the study uses the SEM-neural network method to determine the relationship and importance of five groups of factors affecting the firms’ Industry 4.0 technologies adoption. The results suggest that five groups of factors, including Perceived characteristics, Technological competencies, CEO characteristics, Environmental characteristics, and Subjective Norms, all positively and significantly impact the Industry 4.0 technologies adoption in Vietnam. In particular, Technological competencies are the most influential factors according to the SEM method, while Subjective norms factors have the most decisive impact according to the neural-network method. Moreover, the research also found that adopting Industry 4.0 technologies depends on different company characteristics, such as age, size, status, and industry.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:7:p:5969-:d:1111273
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/7/5969/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/7/5969/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Craig Galbraith & Dan Schendel, 1983. "An empirical analysis of strategy types," Strategic Management Journal, Wiley Blackwell, vol. 4(2), pages 153-173, April.
    2. Stoneman, Paul & Kwon, Myung Joong, 1996. "Technology Adoption and Firm Profitability," Economic Journal, Royal Economic Society, vol. 106(437), pages 952-962, July.
    3. Hollenstein, Heinz, 2004. "Determinants of the adoption of Information and Communication Technologies (ICT): An empirical analysis based on firm-level data for the Swiss business sector," Structural Change and Economic Dynamics, Elsevier, vol. 15(3), pages 315-342, September.
    4. Erik Brynjolfsson, 1994. "Information Assets, Technology and Organization," Management Science, INFORMS, vol. 40(12), pages 1645-1662, December.
    5. Spanos, Yiannis E. & Voudouris, Irini, 2009. "Antecedents and trajectories of AMT adoption: The case of Greek manufacturing SMEs," Research Policy, Elsevier, vol. 38(1), pages 144-155, February.
    6. Trainor, Kevin J. & Andzulis, James (Mick) & Rapp, Adam & Agnihotri, Raj, 2014. "Social media technology usage and customer relationship performance: A capabilities-based examination of social CRM," Journal of Business Research, Elsevier, vol. 67(6), pages 1201-1208.
    7. Thong, J. Y. L. & Yap, C. S., 1995. "CEO characteristics, organizational characteristics and information technology adoption in small businesses," Omega, Elsevier, vol. 23(4), pages 429-442, August.
    8. Frank M. Bass, 1969. "A New Product Growth for Model Consumer Durables," Management Science, INFORMS, vol. 15(5), pages 215-227, January.
    9. Thong, James Y. L., 2001. "Resource constraints and information systems implementation in Singaporean small businesses," Omega, Elsevier, vol. 29(2), pages 143-156, April.
    10. Pontikakis, D. & Lin, Y. & Demirbas, D., 2006. "History matters in Greece: The adoption of Internet-enabled computers by small and medium sized enterprises," Information Economics and Policy, Elsevier, vol. 18(3), pages 332-358, September.
    11. Ajzen, Icek, 1991. "The theory of planned behavior," Organizational Behavior and Human Decision Processes, Elsevier, vol. 50(2), pages 179-211, December.
    12. Viswanath Venkatesh & Fred D. Davis, 2000. "A Theoretical Extension of the Technology Acceptance Model: Four Longitudinal Field Studies," Management Science, INFORMS, vol. 46(2), pages 186-204, February.
    13. Bertschek, Irene & Fryges, Helmut, 2002. "The Adoption of Business-to-Business E-Commerce: Empirical Evidence for German Companies," ZEW Discussion Papers 02-05, ZEW - Leibniz Centre for European Economic Research.
    14. Pierre-André Julien & Louis Raymond, 1994. "Factors of New Technology Adoption in the Retail Sector," Entrepreneurship Theory and Practice, , vol. 18(4), pages 79-90, July.
    15. Marcati, Alberto & Guido, Gianluigi & Peluso, Alessandro M., 2008. "The role of SME entrepreneurs' innovativeness and personality in the adoption of innovations," Research Policy, Elsevier, vol. 37(9), pages 1579-1590, October.
    16. Princely Ifinedo, 2011. "An Empirical Analysis Of Factors Influencing Internet/E-Business Technologies Adoption By Smes In Canada," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 10(04), pages 731-766.
    17. Kevin Zhu & Kenneth L. Kraemer, 2005. "Post-Adoption Variations in Usage and Value of E-Business by Organizations: Cross-Country Evidence from the Retail Industry," Information Systems Research, INFORMS, vol. 16(1), pages 61-84, March.
    18. Bartel, Ann P & Lichtenberg, Frank R, 1987. "The Comparative Advantage of Educated Workers in Implementing New Technology," The Review of Economics and Statistics, MIT Press, vol. 69(1), pages 1-11, February.
    19. Anna Giunta & Francesco Trivieri, 2007. "Understanding the determinants of information technology adoption: evidence from Italian manufacturing firms," Applied Economics, Taylor & Francis Journals, vol. 39(10), pages 1325-1334.
    20. Nasco, Suzanne Altobello & Toledo, Elizabeth Grandón & Mykytyn Jr., Peter P., 2008. "Predicting electronic commerce adoption in Chilean SMEs," Journal of Business Research, Elsevier, vol. 61(6), pages 697-705, June.
    21. Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2017. "What drives ICT adoption by SMEs? Evidence from a large-scale survey in Greece," Journal of Business Research, Elsevier, vol. 81(C), pages 60-69.
    22. Xuan Vinh Vo & Huu Huan Nguyen & Khanh Duy Pham, 2016. "Financial structure and economic growth: the case of Vietnam," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 6(2), pages 141-154, August.
    23. Melissa A. Schilling & Corey C. Phelps, 2007. "Interfirm Collaboration Networks: The Impact of Large-Scale Network Structure on Firm Innovation," Management Science, INFORMS, vol. 53(7), pages 1113-1126, July.
    24. Richard L. Daft & Robert H. Lengel, 1986. "Organizational Information Requirements, Media Richness and Structural Design," Management Science, INFORMS, vol. 32(5), pages 554-571, May.
    25. Bruce Mcwilliams & David Zilbermanfr, 1996. "Time Of Technology Adoption And Learning By Using," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(2), pages 139-154.
    26. David A. Harrison & Peter P. Mykytyn & Cynthia K. Riemenschneider, 1997. "Executive Decisions About Adoption of Information Technology in Small Business: Theory and Empirical Tests," Information Systems Research, INFORMS, vol. 8(2), pages 171-195, June.
    27. Spyros Arvanitis & Heinz Hollenstein, 2001. "The Determinants Of The Adoption Of Advanced Manufacturing Technology," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 10(5), pages 377-414.
    28. Ruby Roy Dholakia & Nir Kshetri, 2004. "Factors Impacting the Adoption of the Internet among SMEs," Small Business Economics, Springer, vol. 23(4), pages 311-322, November.
    29. Jingtao Yao & Chew Lim Tan & Hean-Lee Poh, 1999. "Neural Networks For Technical Analysis: A Study On Klci," International Journal of Theoretical and Applied Finance (IJTAF), World Scientific Publishing Co. Pte. Ltd., vol. 2(02), pages 221-241.
    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. 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.

    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. Giotopoulos, Ioannis & Kontolaimou, Alexandra & Korra, Efthymia & Tsakanikas, Aggelos, 2017. "What drives ICT adoption by SMEs? Evidence from a large-scale survey in Greece," Journal of Business Research, Elsevier, vol. 81(C), pages 60-69.
    2. Gianluca Vagnani & Corrado Gatti & Luca Proietti, 2019. "A conceptual framework of the adoption of innovations in organizations: a meta-analytical review of the literature," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 23(4), pages 1023-1062, December.
    3. Guych Nuryyev & Yu-Ping Wang & Jennet Achyldurdyyeva & Bih-Shiaw Jaw & Yi-Shien Yeh & Hsien-Tang Lin & Li-Fan Wu, 2020. "Blockchain Technology Adoption Behavior and Sustainability of the Business in Tourism and Hospitality SMEs: An Empirical Study," Sustainability, MDPI, vol. 12(3), pages 1-21, February.
    4. Cho, Jaehan & DeStefano, Timothy & Kim, Hanhin & Kim, Inchul & Paik, Jin Hyun, 2023. "What's driving the diffusion of next-generation digital technologies?," Technovation, Elsevier, vol. 119(C).
    5. Adel Ben Khalifa, 2022. "Inter- and Intra-firm Diffusion of Technology: the Example of Software, Hardware, and Network Communications Empirical Evidence for Tunisian Manufacturing Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 236-263, March.
    6. Cowan, Kelly R. & Daim, Tugrul U., 2011. "Review of technology acquisition and adoption research in the energy sector," Technology in Society, Elsevier, vol. 33(3), pages 183-199.
    7. Hollenstein, Heinz & Woerter, Martin, 2008. "Inter- and intra-firm diffusion of technology: The example of E-commerce: An analysis based on Swiss firm-level data," Research Policy, Elsevier, vol. 37(3), pages 545-564, April.
    8. Spyros Arvanitis & Marius Christian Ley, 2010. "Factors Determining the Adoption of Energy-saving Technologies in Swiss Firms," KOF Working papers 10-257, KOF Swiss Economic Institute, ETH Zurich.
    9. Margareta Heidt & Jin P. Gerlach & Peter Buxmann, 2019. "Investigating the Security Divide between SME and Large Companies: How SME Characteristics Influence Organizational IT Security Investments," Information Systems Frontiers, Springer, vol. 21(6), pages 1285-1305, December.
    10. Capestro, Mauro & Rizzo, Cristian & Kliestik, Tomas & Peluso, Alessandro M. & Pino, Giovanni, 2024. "Enabling digital technologies adoption in industrial districts: The key role of trust and knowledge sharing," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    11. Spyros Arvanitis & Marius Ley, 2013. "Factors Determining the Adoption of Energy-Saving Technologies in Swiss Firms: An Analysis Based on Micro Data," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 54(3), pages 389-417, March.
    12. Mohamed Kossaï & Maria Luiza Lapa Souza & Younes Ben Zaied & Pascal Nguyen, 2020. "Determinants of the Adoption of Information and Communication Technologies (ICTs): the Case of Tunisian Electrical and Electronics Sector," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 845-864, September.
    13. Martin, Ludivine, 2009. "Understanding the implementation of e-business strategies: Evidence from Luxembourg," MPRA Paper 13645, University Library of Munich, Germany.
    14. Fındık, Derya & Tansel, Aysit, 2013. "Resources on the stage: a firm level analysis of the ict adoption in Turkey," MPRA Paper 65956, University Library of Munich, Germany, revised 05 Aug 2014.
    15. Paul Juinn Bing Tan, 2013. "Applying the UTAUT to Understand Factors Affecting the Use of English E-Learning Websites in Taiwan," SAGE Open, , vol. 3(4), pages 21582440135, October.
    16. Mäntymäki, Matti & Salo, Jari, 2013. "Purchasing behavior in social virtual worlds: An examination of Habbo Hotel," International Journal of Information Management, Elsevier, vol. 33(2), pages 282-290.
    17. Donmez, Birsen & Matson, Zannah & Savan, Beth & Farahani, Ellie & Photiadis, David & Dafoe, Joanna, 2014. "Interruption management and office norms: Technology adoption lessons from a product commercialization study," International Journal of Information Management, Elsevier, vol. 34(6), pages 741-750.
    18. Viswanath Venkatesh, 2000. "Determinants of Perceived Ease of Use: Integrating Control, Intrinsic Motivation, and Emotion into the Technology Acceptance Model," Information Systems Research, INFORMS, vol. 11(4), pages 342-365, December.
    19. Naruemon Choochinprakarn, 2015. "Strategic Uses of Electronic Commerce for Thai Travel Small and Medium Enterprises (SMEs)," Proceedings of Business and Management Conferences 2303915, International Institute of Social and Economic Sciences.
    20. Ramzi El-Haddadeh, 0. "Digital Innovation Dynamics Influence on Organisational Adoption: The Case of Cloud Computing Services," Information Systems Frontiers, Springer, vol. 0, pages 1-15.

    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:gam:jsusta:v:15:y:2023:i:7:p:5969-:d:1111273. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.