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Barriers to the adoption of digital technologies in a functional circular economy network

Author

Listed:
  • Vimal K.E. K

    (National Institute of Technology Tiruchirappalli)

  • Sivakumar K

    (Loyola Institute of Business Administration)

  • Jayakrishna Kandasamy

    (Vellore Institute of Technology)

  • Vaibhav Venkat

    (University of Houston)

  • Raghuraman Srinivasan Mani

    (University of Houston)

Abstract

Technologies are developing at a fast rate in which every new technology has an ample range of applications. Digitalization has taken rapid strides over the last few years which plays an important role in Industry 4.0. The digital revolution is fundamentally changing the way people live and work, and the public is optimistic about the opportunities Industry 4.0 can offer for sustainability. All organizations or industries have not been equipped with the latest technologies to adopt digitalization. This is mainly due to the lack of knowledge and expertise and unclear benefits of the technology. The study identifies the potential barriers in the adoption of digital technologies through two processes namely Total Interpretive Structural Modelling (TISM) and Matrix Multiplication Applied to Classification (MICMAC) analysis. Using these models, the study interprets the barriers and analyses the relationship between the barriers. The barriers need to be treated on a priority basis and must be eliminated to successfully adopt digital technologies. From the developed TISM model and MICMAC analysis, the most influential barrier for the adoption of digital technologies in Industry 4.0 are negative perception towards technology because, this barrier will not depend on other barriers and hence managers must give a topmost priority to avoid the disruption in the system for the adoption of digital technologies. The study talks about other key barriers which influence the implementation of Industry 4.0, some of them being unclear benefits and lack of awareness. These barriers act as the primary variables which disturb the system and hinder the approach while additional barriers pose as secondary variables in the system. This research aims to help Industry 4.0 stakeholders – public and private sector leaders, industrialists– to get a lot more clarity on the opportunities that the digital revolution can offer for sustainability and to ensure that Industry 4.0 delivers sustainable functions.

Suggested Citation

  • Vimal K.E. K & Sivakumar K & Jayakrishna Kandasamy & Vaibhav Venkat & Raghuraman Srinivasan Mani, 2023. "Barriers to the adoption of digital technologies in a functional circular economy network," Operations Management Research, Springer, vol. 16(3), pages 1541-1561, September.
    • Handle: RePEc:spr:opmare:v:16:y:2023:i:3:d:10.1007_s12063-023-00375-y
    DOI: 10.1007/s12063-023-00375-y
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    References listed on IDEAS

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