Digitalization Adoption Barriers in the Context of Sustainability and Operational Excellence: Implications for SMEs.
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| Title: | Digitalization Adoption Barriers in the Context of Sustainability and Operational Excellence: Implications for SMEs. |
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| Authors: | Kumar, Ravinder1 (AUTHOR) rkumar19@amity.edu, Dutta, Gautam1 (AUTHOR) dutta.gautam4@gmail.com, Phanden, Rakesh Kumar1,2,3 (AUTHOR) rkphanden@amity.edu |
| Source: | Engineering Management Journal. 2025, Vol. 37 Issue 4, p355-371. 17p. |
| Subjects: | Sustainability, Industry 4.0, Computer literacy, Small business, Partial least squares regression, Digital technology, Organizational effectiveness |
| Abstract: | In the global landscape, small and medium enterprises (SMEs) are increasingly enhancing their adaptability to capitalize on evolving market prospects. Industry 4.0 technologies, with their primary focus on improving operational excellence, hold immense potential for contributing to the sustainability of SMEs. These technologies optimize resources, repurpose materials, enable remote working, and minimize waste, thereby fostering a resilient business environment. In the current study, the authors have utilized the Technology, Organization, and Environment (TOE) framework to conduct a comprehensive literature review and identified the key barriers. Research questions and hypothesis were formulated. A questionnaire-based survey was conducted, involving 205 discrete manufacturing SMEs. The authors evaluated the proposed hypotheses using the Partial Least Square Structural Equation Modeling (PLS-SEM) technique to gain insights into their causal relationships. Identified barriers are categorized as adoption barriers, lack of in-house technology skills, readiness barriers, and adverse operational realities. The authors observed that lack of strategic planning, inadequate focus on processes and performance monitoring results in barriers that hinder the digitalization of SMEs. Further results anticipate that operational realities have a direct relationship with readiness barriers of SMEs. This implies that challenges such as workforce turnover, pricing pressures, last-minute design changes, overdue payments, and outdated infrastructure can lead to operational difficulties, resulting in suboptimal strategies, business plans, and ineffective processes. The findings of the current study also imply that implementing shopfloor industrial Internet of things (IIoT) to track performance and interventions through digital definitions of products and manufacturing can further strengthen processes. By incorporating the findings from this study, SME stakeholders can develop strategies to achieve operational excellence while fulfilling their sustainability goals. [ABSTRACT FROM AUTHOR] |
| Copyright of Engineering Management Journal is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.) | |
| Database: | Engineering Source |
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| Header | DbId: egs DbLabel: Engineering Source An: 187068826 AccessLevel: 6 PubType: Academic Journal PubTypeId: academicJournal PreciseRelevancyScore: 0 |
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| Items | – Name: Title Label: Title Group: Ti Data: Digitalization Adoption Barriers in the Context of Sustainability and Operational Excellence: Implications for SMEs. – Name: Author Label: Authors Group: Au Data: <searchLink fieldCode="AR" term="%22Kumar%2C+Ravinder%22">Kumar, Ravinder</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> rkumar19@amity.edu</i><br /><searchLink fieldCode="AR" term="%22Dutta%2C+Gautam%22">Dutta, Gautam</searchLink><relatesTo>1</relatesTo> (AUTHOR)<i> dutta.gautam4@gmail.com</i><br /><searchLink fieldCode="AR" term="%22Phanden%2C+Rakesh+Kumar%22">Phanden, Rakesh Kumar</searchLink><relatesTo>1,2,3</relatesTo> (AUTHOR)<i> rkphanden@amity.edu</i> – Name: TitleSource Label: Source Group: Src Data: <searchLink fieldCode="JN" term="%22Engineering+Management+Journal%22">Engineering Management Journal</searchLink>. 2025, Vol. 37 Issue 4, p355-371. 17p. – Name: Subject Label: Subjects Group: Su Data: <searchLink fieldCode="DE" term="%22Sustainability%22">Sustainability</searchLink><br /><searchLink fieldCode="DE" term="%22Industry+4%2E0%22">Industry 4.0</searchLink><br /><searchLink fieldCode="DE" term="%22Computer+literacy%22">Computer literacy</searchLink><br /><searchLink fieldCode="DE" term="%22Small+business%22">Small business</searchLink><br /><searchLink fieldCode="DE" term="%22Partial+least+squares+regression%22">Partial least squares regression</searchLink><br /><searchLink fieldCode="DE" term="%22Digital+technology%22">Digital technology</searchLink><br /><searchLink fieldCode="DE" term="%22Organizational+effectiveness%22">Organizational effectiveness</searchLink> – Name: Abstract Label: Abstract Group: Ab Data: In the global landscape, small and medium enterprises (SMEs) are increasingly enhancing their adaptability to capitalize on evolving market prospects. Industry 4.0 technologies, with their primary focus on improving operational excellence, hold immense potential for contributing to the sustainability of SMEs. These technologies optimize resources, repurpose materials, enable remote working, and minimize waste, thereby fostering a resilient business environment. In the current study, the authors have utilized the Technology, Organization, and Environment (TOE) framework to conduct a comprehensive literature review and identified the key barriers. Research questions and hypothesis were formulated. A questionnaire-based survey was conducted, involving 205 discrete manufacturing SMEs. The authors evaluated the proposed hypotheses using the Partial Least Square Structural Equation Modeling (PLS-SEM) technique to gain insights into their causal relationships. Identified barriers are categorized as adoption barriers, lack of in-house technology skills, readiness barriers, and adverse operational realities. The authors observed that lack of strategic planning, inadequate focus on processes and performance monitoring results in barriers that hinder the digitalization of SMEs. Further results anticipate that operational realities have a direct relationship with readiness barriers of SMEs. This implies that challenges such as workforce turnover, pricing pressures, last-minute design changes, overdue payments, and outdated infrastructure can lead to operational difficulties, resulting in suboptimal strategies, business plans, and ineffective processes. The findings of the current study also imply that implementing shopfloor industrial Internet of things (IIoT) to track performance and interventions through digital definitions of products and manufacturing can further strengthen processes. By incorporating the findings from this study, SME stakeholders can develop strategies to achieve operational excellence while fulfilling their sustainability goals. [ABSTRACT FROM AUTHOR] – Name: AbstractSuppliedCopyright Label: Group: Ab Data: <i>Copyright of Engineering Management Journal is the property of Taylor & Francis Ltd and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract.</i> (Copyright applies to all Abstracts.) |
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| RecordInfo | BibRecord: BibEntity: Identifiers: – Type: doi Value: 10.1080/10429247.2024.2372519 Languages: – Code: eng Text: English PhysicalDescription: Pagination: PageCount: 17 StartPage: 355 Subjects: – SubjectFull: Sustainability Type: general – SubjectFull: Industry 4.0 Type: general – SubjectFull: Computer literacy Type: general – SubjectFull: Small business Type: general – SubjectFull: Partial least squares regression Type: general – SubjectFull: Digital technology Type: general – SubjectFull: Organizational effectiveness Type: general Titles: – TitleFull: Digitalization Adoption Barriers in the Context of Sustainability and Operational Excellence: Implications for SMEs. Type: main BibRelationships: HasContributorRelationships: – PersonEntity: Name: NameFull: Kumar, Ravinder – PersonEntity: Name: NameFull: Dutta, Gautam – PersonEntity: Name: NameFull: Phanden, Rakesh Kumar IsPartOfRelationships: – BibEntity: Dates: – D: 01 M: 10 Text: 2025 Type: published Y: 2025 Identifiers: – Type: issn-print Value: 10429247 Numbering: – Type: volume Value: 37 – Type: issue Value: 4 Titles: – TitleFull: Engineering Management Journal Type: main |
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