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The Environmental Impact of Advanced Manufacturing Technologies: Examples from Hungary

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  • Andrea Szalavetz

Abstract

The purpose of the paper is to demonstrate the beneficial impact of advanced manufacturing technologies (AMT) on firms' environmental performance. Drawing on interviews conducted with 16 Hungarian manufacturing subsidiaries on their experience with AMT, we find three functional areas, where industry 4.0 solutions can not only enhance operational excellence and cost-efficiency, but they can also improve eco-efficiency, but they can also improve eco-efficiency, namely in the field of quality management (through smart production control, data analytics and predictive modelling solutions); process optimization (through capacity planning and production scheduling solutions); and product and process engineering (through advanced virtual technologies). We also find that AMT adoption facilitated subsidiary upgrading along various dimensions. The main managerial implication is that subsidiaries need to be proactive, and emphasize also the benefits stemming from energy and resource efficiency improvement when lobbying for investment in AMT.

Suggested Citation

  • Andrea Szalavetz, 2017. "The Environmental Impact of Advanced Manufacturing Technologies: Examples from Hungary," Central European Business Review, Prague University of Economics and Business, vol. 2017(2), pages 18-29.
    • Handle: RePEc:prg:jnlcbr:v:2017:y:2017:i:2:id:177:p:18-29
    DOI: 10.18267/j.cebr.177
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    References listed on IDEAS

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    Cited by:

    1. José Celso Contador & Walter Cardoso Satyro & Jose Luiz Contador & Mauro de Mesquita Spinola, 2020. "Flexibility in the Brazilian Industry 4.0: Challenges and Opportunities," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 21(1), pages 15-31, June.
    2. Jaroslav Vrchota & Miroslava Vlčková & Zuzana Frantíková, 2020. "Division of Enterprises and Their Strategies in Relation to Industry 4.0," Central European Business Review, Prague University of Economics and Business, vol. 2020(4), pages 27-44.
    3. Xiaoxia Chen & Mélanie Despeisse & Björn Johansson, 2020. "Environmental Sustainability of Digitalization in Manufacturing: A Review," Sustainability, MDPI, vol. 12(24), pages 1-31, December.

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    More about this item

    Keywords

    industry 4.0; greening; manufacturing subsidiaries; process upgrading; Hungary;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation

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