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Value Creation by SMEs Participating in Global Value Chains under Industry 4.0 Trend: Case Study of Textile Industry in Taiwan

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  • Chun-Liang Chen

Abstract

The aim of this paper was to explore how small-and-medium enterprises (SMEs) employ technology to integrate industrial supply chains and to participate in global supply chains in the context of the fourth industrial revolution (Industry 4.0). This study chose four textile SMEs from Taiwan, using multiple case studies to explore their participation in global value chains. By focusing on the needs of the SME sector we also discuss why IoT as-a-Service (IoTaaS) might be an appropriate concept in the context of Industry 4.0. We found that textile SMEs can connect to global value chains through the following three roles: original equipment manufacturer of clothing, brand clothing manufacturer, and intermediate trader. They can also participate in global value chains by collaborating with supply chain partners. This participation occurs both vertically and horizontally through value creation models with one of the following four foci: (1) increasing production efficiency, (2) improving negotiation skills for larger and more orders from international suppliers, (3) grasping channel needs and management, and (4) creating novel customer service experiences.

Suggested Citation

  • Chun-Liang Chen, 2019. "Value Creation by SMEs Participating in Global Value Chains under Industry 4.0 Trend: Case Study of Textile Industry in Taiwan," Journal of Global Information Technology Management, Taylor & Francis Journals, vol. 22(2), pages 120-145, April.
    • Handle: RePEc:taf:ugitxx:v:22:y:2019:i:2:p:120-145
    DOI: 10.1080/1097198X.2019.1603512
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    Cited by:

    1. Wenqi Li & Qi Li & Ming Chen & Yutong Su & Jianhua Zhu, 2023. "Global Value Chains, Digital Economy, and Upgrading of China’s Manufacturing Industry," Sustainability, MDPI, vol. 15(10), pages 1-25, May.
    2. Pilková, Anna & Kovačičova, Zuzana, 2021. "Podnikanie na Slovensku v dobe digitalizácie optikou generácií [Doing business in Slovakia in the era of digitalization through the lens of generations]," MPRA Paper 113391, University Library of Munich, Germany.
    3. Soni, Gunjan & Kumar, Satish & Mahto, Raj V. & Mangla, Sachin K. & Mittal, M.L. & Lim, Weng Marc, 2022. "A decision-making framework for Industry 4.0 technology implementation: The case of FinTech and sustainable supply chain finance for SMEs," Technological Forecasting and Social Change, Elsevier, vol. 180(C).
    4. Lilia A. Valitova & Elena R. Sharko & Marina Yu. Sheresheva, 2021. "Identifying industrial clusters based on the analysis of business ties: A case of the textile industry," Upravlenets, Ural State University of Economics, vol. 12(4), pages 59-74, September.
    5. Sumera Ahmad & Suraya Miskon & Rana Alabdan & Iskander Tlili, 2020. "Towards Sustainable Textile and Apparel Industry: Exploring the Role of Business Intelligence Systems in the Era of Industry 4.0," Sustainability, MDPI, vol. 12(7), pages 1-23, March.
    6. Chen, Wenshin & Filieri, Raffaele, 2024. "Institutional forces, leapfrogging effects, and innovation status: Evidence from the adoption of a continuously evolving technology in small organizations," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    7. Bahoo, Salman & Cucculelli, Marco & Qamar, Dawood, 2023. "Artificial intelligence and corporate innovation: A review and research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    8. Claudio Vitari & E. Raguseo, 2021. "Big data technologies: perceived benefits and costs for adopter and non-adopter enterprises [Technologies pour les données massives : Bénéfices et coûts perçus par les entreprises adoptantes et non," Post-Print hal-03323888, HAL.
    9. Usama Awan & Robert Sroufe & Karoly Bozan, 2022. "Designing Value Chains for Industry 4.0 and a Circular Economy: A Review of the Literature," Sustainability, MDPI, vol. 14(12), pages 1-20, June.
    10. Lihong Chen & Habiba Halepoto & Chunhong Liu & Xinfeng Yan & Lijun Qiu, 2022. "Research on Influencing Mechanism of Fashion Brand Image Value Creation Based on Consumer Value Co-Creation and Experiential Value Perception Theory," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    11. Fosso Wamba, Samuel & Queiroz, Maciel M. & Trinchera, Laura, 2020. "Dynamics between blockchain adoption determinants and supply chain performance: An empirical investigation," International Journal of Production Economics, Elsevier, vol. 229(C).
    12. Mengyang Li, 2024. "Adapting Legal Education for the Changing Landscape of Regional Emerging Economies: A Dynamic Framework for Law Majors," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10227-10256, September.
    13. Denicolai, Stefano & Zucchella, Antonella & Magnani, Giovanna, 2021. "Internationalization, digitalization, and sustainability: Are SMEs ready? A survey on synergies and substituting effects among growth paths," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    14. B. Deepthi & Vikram Bansal, 2024. "Industry 4.0 in Textile and Apparel Industry: A Systematic Literature Review and Bibliometric Analysis of Global Research Trends," Vision, , vol. 28(2), pages 157-170, April.
    15. Aidin Salamzadeh & Morteza Hadizadeh & Niloofar Rastgoo & Md. Mizanur Rahman & Soodabeh Radfard, 2022. "Sustainability-Oriented Innovation Foresight in International New Technology Based Firms," Sustainability, MDPI, vol. 14(20), pages 1-21, October.
    16. Philbin, Simon & Viswanathan, Radhakrishnan & Telukdarie, Arnesh, 2022. "Understanding how digital transformation can enable SMEs to achieve sustainable development: A systematic literature review," Small Business International Review, Asociación Española de Contabilidad y Administración de Empresas - AECA, vol. 6(1), pages 473-473, May.
    17. Han, Hui & Trimi, Silvana, 2022. "Towards a data science platform for improving SME collaboration through Industry 4.0 technologies," Technological Forecasting and Social Change, Elsevier, vol. 174(C).

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