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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
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