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Industry 4.0 and resilience in the supply chain: a driver of capability enhancement or capability loss?

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  • Peter Ralston
  • Jennifer Blackhurst

Abstract

The purpose of this research is to develop a better understanding of smart systems and autonomous processes of the Industry 4.0 era. Does the implementation of Industry 4.0 processes and systems expose firms to higher levels of risk in the supply chain through capability loss or does Industry 4.0 spur capability enhancement and thereby increase supply chain resilience? Industry 4.0 is centred on the idea that certain tasks and decisions can be automated through smart systems and autonomous processes. However, is there a risk of losing critical capabilities and the ability to be flexible, agile and resilient to unexpected disruptions in the supply chain? In order to address these questions, this research presents results from semi-structured interviews across multiple industries to provide findings on firms’ uses of smart systems and capability development associated with these systems. Results from this exploratory study may be classified into two primary insights. First, although Industry 4.0 systems are new and, in many cases untested, firms are eager regarding the potential of smart systems to positively impact firm performance and to leverage Industry 4.0 processes for a competitive supply chain advantage. Second, companies did not claim any human capability loss associated with Industry 4.0. In fact, these smart systems may lead to increased supply chain resilience because of capability enhancement and new skill development.

Suggested Citation

  • Peter Ralston & Jennifer Blackhurst, 2020. "Industry 4.0 and resilience in the supply chain: a driver of capability enhancement or capability loss?," International Journal of Production Research, Taylor & Francis Journals, vol. 58(16), pages 5006-5019, July.
    • Handle: RePEc:taf:tprsxx:v:58:y:2020:i:16:p:5006-5019
    DOI: 10.1080/00207543.2020.1736724
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    Cited by:

    1. Matthias Klumpp & Dominic Loske, 2021. "Sustainability and Resilience Revisited: Impact of Information Technology Disruptions on Empirical Retail Logistics Efficiency," Sustainability, MDPI, vol. 13(10), pages 1-20, May.
    2. Li, Lixu & Ye, Fei & Zhan, Yuanzhu & Kumar, Ajay & Schiavone, Francesco & Li, Yina, 2022. "Unraveling the performance puzzle of digitalization: Evidence from manufacturing firms," Journal of Business Research, Elsevier, vol. 149(C), pages 54-64.
    3. Padhi, Sidhartha S. & Mukherjee, Soumyatanu & Edwin Cheng, T.C., 2024. "Optimal investment decision for industry 4.0 under uncertainties of capability and competence building for managing supply chain risks," International Journal of Production Economics, Elsevier, vol. 267(C).
    4. Ivanov, Dmitry & Dolgui, Alexandre & Sokolov, Boris, 2022. "Cloud supply chain: Integrating Industry 4.0 and digital platforms in the “Supply Chain-as-a-Service”," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    5. Liu, Jiaguo & Gu, Bingmei & Chen, Jihong, 2023. "Enablers for maritime supply chain resilience during pandemic: An integrated MCDM approach," Transportation Research Part A: Policy and Practice, Elsevier, vol. 175(C).
    6. Belhadi, Amine & Kamble, Sachin & Jabbour, Charbel Jose Chiappetta & Gunasekaran, Angappa & Ndubisi, Nelson Oly & Venkatesh, Mani, 2021. "Manufacturing and service supply chain resilience to the COVID-19 outbreak: Lessons learned from the automobile and airline industries," Technological Forecasting and Social Change, Elsevier, vol. 163(C).
    7. Ye, Fei & Liu, Ke & Li, Lixu & Lai, Kee-Hung & Zhan, Yuanzhu & Kumar, Ajay, 2022. "Digital supply chain management in the COVID-19 crisis: An asset orchestration perspective," International Journal of Production Economics, Elsevier, vol. 245(C).
    8. Yu, Yubing & Zhang, Justin Zuopeng & Cao, Yanhong & Kazancoglu, Yigit, 2021. "Intelligent transformation of the manufacturing industry for Industry 4.0: Seizing financial benefits from supply chain relationship capital through enterprise green management," Technological Forecasting and Social Change, Elsevier, vol. 172(C).
    9. Núñez-Merino, Miguel & Maqueira-Marín, Juan Manuel & Moyano-Fuentes, José & Castaño-Moraga, Carlos Alberto, 2022. "Industry 4.0 and supply chain. A Systematic Science Mapping analysis," Technological Forecasting and Social Change, Elsevier, vol. 181(C).
    10. Shao, Xue-Feng & Liu, Wei & Li, Yi & Chaudhry, Hassan Rauf & Yue, Xiao-Guang, 2021. "Multistage implementation framework for smart supply chain management under industry 4.0," Technological Forecasting and Social Change, Elsevier, vol. 162(C).
    11. Yu, Yubing & Xu, Jiawei & Zhang, Justin Z. & Liu, Yulong (David) & Kamal, Muhammad Mustafa & Cao, Yanhong, 2024. "Unleashing the power of AI in manufacturing: Enhancing resilience and performance through cognitive insights, process automation, and cognitive engagement," International Journal of Production Economics, Elsevier, vol. 270(C).
    12. Ku, Edward C.S., 2022. "Developing business process agility: Evidence from inter-organizational information systems of airlines and travel agencies," Journal of Air Transport Management, Elsevier, vol. 103(C).
    13. Khan, Naveed R. & Ameer, Farah & Bouncken, Ricarda B. & Covin, Jeffrey G., 2023. "Corporate sustainability entrepreneurship: The role of green entrepreneurial orientation and organizational resilience capacity for green innovation," Journal of Business Research, Elsevier, vol. 169(C).

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