Knowledge Creation in SMEs in the Era of Industry 4.0: a Comparative Study of Pakistan and China

In the era of Industry 4.0, the integration of advanced technologies within the manufacturing sector presents both opportunities and challenges for SMEs in China and Pakistan, especially in knowledge creation. Our study, which is based on a robust research methodology, advances knowledge creation pathways in Industry 4.0, compares China with Pakistan, and focuses on SMEs. We have used the theory of the resource-based view (RBV) as our theoretical framework and conducted a survey in the areas of Karachi, Pakistan, and Shanghai, China. The survey collected data from SMEs, and the results were based on 218 valid responses (117 from China and 101 from Pakistan). Our findings indicate that big data, cyber-physical systems (CPS), and self-organization as independent variables strongly and positively influenced targeting and joint knowledge creation in any of the two countries. However, it does reflect those variable impacts of integration and interoperability, which may also suggest differences across regions in their efficacy and outcomes. This relates to the study where the role of the critical e-learning platform is associated as a mediator, which helps to uplift the diffusion of knowledge relative to the different organizational levels. Overall, this study shows how Industry 4.0 technologies can become strategic knowledge production tools and inform SMEs on technology adaptation and knowledge management ecosystems.