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Analysis of barriers for implementation of Industry 4.0 in Indian SMEs

Author

Listed:
  • Siddharth Sahu

    (Business Risk Analyst, Security Loss Prevention, Amazon India)

  • Anchal Gupta

    (Apeejay School of Management, Dwarka, Delhi)

Abstract

The purpose of this study is to understand the various barriers faced by the Indian SMEs, in integrating the modern technology of Industry 4.0. From vast literature review, a list of challenges has been identified in various fields of SMEs like, smart production, logistics, sustainable supply chain etc. After interviewing with industry experts and conducting a survey, the inputs for barriers were identified and ranked using ISM for understanding the criticality and contextual relationship among them. While many SMEs are trying to cope up with the emerging technology, most SMEs in India lack the basic operational ability in terms of IT technology, real time monitoring of the processes, inter-connectivity of different domains of supply chain along with other challenges. Overcoming these challenges is very crucial for Indian SMEs, in moving towards the I4.0. Businesses improve their future plans by considering these challenges and devising a strategy to overcome it. Also, the dependability of different barriers on each other, which is quantified using MICMAC analysis, is a step forward in understanding these barriers better.

Suggested Citation

  • Siddharth Sahu & Anchal Gupta, 2021. "Analysis of barriers for implementation of Industry 4.0 in Indian SMEs," Acta Universitatis Bohemiae Meridionalis, University of South Bohemia in Ceske Budejovice, Faculty of Economics, vol. 24(3), pages 1-14.
    • Handle: RePEc:boh:actaub:v:24:y:2021:i:3:p:1-14
    DOI: 10.32725/acta.2021.009
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    References listed on IDEAS

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    1. Raj, Alok & Dwivedi, Gourav & Sharma, Ankit & Lopes de Sousa Jabbour, Ana Beatriz & Rajak, Sonu, 2020. "Barriers to the adoption of industry 4.0 technologies in the manufacturing sector: An inter-country comparative perspective," International Journal of Production Economics, Elsevier, vol. 224(C).
    2. Dalenogare, Lucas Santos & Benitez, Guilherme Brittes & Ayala, Néstor Fabián & Frank, Alejandro Germán, 2018. "The expected contribution of Industry 4.0 technologies for industrial performance," International Journal of Production Economics, Elsevier, vol. 204(C), pages 383-394.
    3. Bayraktar, Erkan & Demirbag, Mehmet & Koh, S.C. Lenny & Tatoglu, Ekrem & Zaim, Halil, 2009. "A causal analysis of the impact of information systems and supply chain management practices on operational performance: Evidence from manufacturing SMEs in Turkey," International Journal of Production Economics, Elsevier, vol. 122(1), pages 133-149, November.
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