IDEAS home Printed from https://ideas.repec.org/a/wsi/ijimxx/v21y2017i08ns1363919617400151.html
   My bibliography  Save this article

Sustainable Industrial Value Creation: Benefits And Challenges Of Industry 4.0

Author

Listed:
  • DANIEL KIEL

    (Friedrich-Alexander University Erlangen-Nürnberg, Lange Gasse 20, 90403 Nürnberg, Germany)

  • JULIAN M. MÜLLER

    (Friedrich-Alexander University Erlangen-Nürnberg, Lange Gasse 20, 90403 Nürnberg, Germany)

  • CHRISTIAN ARNOLD

    (Friedrich-Alexander University Erlangen-Nürnberg, Lange Gasse 20, 90403 Nürnberg, Germany)

  • KAI-INGO VOIGT

    (Friedrich-Alexander University Erlangen-Nürnberg, Lange Gasse 20, 90403 Nürnberg, Germany)

Abstract

The Industrial Internet of Things (IIoT) poses several implications on manufacturers in terms of economic, ecological, and social aspects referring to the Triple Bottom Line (TBL) of sustainable value creation. Due to its technical core, the current research focused on its technical fundamentals, whereas the economic discussion is still in its infancy. This paper aims at painting a comprehensive and structured picture of IIoT-related economic, ecological, and social benefits and challenges. For this purpose, we employ an exploratory multiple case study approach based on semi-structured expert interviews in 46 manufacturing companies from three leading German industries. Our study contributes to the sparse body of scientific IIoT literature by analysing the IIoT’s implications according to the TBL. We show that, in order to qualify for sustainable industrial value creation, the IIoT requires an extension of the established TBL by three further dimensions, i.e., technical integration, data and information, and public context.

Suggested Citation

  • Daniel Kiel & Julian M. Müller & Christian Arnold & Kai-Ingo Voigt, 2017. "Sustainable Industrial Value Creation: Benefits And Challenges Of Industry 4.0," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(08), pages 1-34, December.
    • Handle: RePEc:wsi:ijimxx:v:21:y:2017:i:08:n:s1363919617400151
    DOI: 10.1142/S1363919617400151
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S1363919617400151
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1142/S1363919617400151?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Markus Milne & Rob Gray, 2013. "W(h)ither Ecology? The Triple Bottom Line, the Global Reporting Initiative, and Corporate Sustainability Reporting," Journal of Business Ethics, Springer, vol. 118(1), pages 13-29, November.
    2. World Commission on Environment and Development,, 1987. "Our Common Future," OUP Catalogue, Oxford University Press, number 9780192820808, Decembrie.
    3. Erik G. Hansen & Friedrich Grosse-Dunker & Ralf Reichwald, 2009. "Sustainability Innovation Cube — A Framework To Evaluate Sustainability-Oriented Innovations," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 13(04), pages 683-713.
    4. Pfeffer, Jeffrey, 2010. "Building Sustainable Organizations: The Human Factor," Research Papers 2017r, Stanford University, Graduate School of Business.
    5. Qiu, Xuan & Luo, Hao & Xu, Gangyan & Zhong, Runyang & Huang, George Q., 2015. "Physical assets and service sharing for IoT-enabled Supply Hub in Industrial Park (SHIP)," International Journal of Production Economics, Elsevier, vol. 159(C), pages 4-15.
    6. Wagner, Marcus, 2010. "The role of corporate sustainability performance for economic performance: A firm-level analysis of moderation effects," Ecological Economics, Elsevier, vol. 69(7), pages 1553-1560, May.
    7. Ellen H.M. Moors & Philip J. Vergragt, 2002. "Technology Choices For Sustainable Industrial Production: Transitions In Metal Making," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 6(03), pages 277-299.
    8. Christian W. Scheiner & Christian V. Baccarella & Nina Feller & Kai-Ingo Voigt & John Bessant, 2016. "Organisational And Individual Unlearning In Identification And Evaluation Of Technologies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(02), pages 1-27, February.
    9. Norman, Wayne & MacDonald, Chris, 2004. "Getting to the Bottom of “Triple Bottom Lineâ€," Business Ethics Quarterly, Cambridge University Press, vol. 14(2), pages 243-262, April.
    10. Marcos Roberto Kuhl & João Carlos Da Cunha & Marlete Beatriz Maçaneiro & Sieglinde Kindl Cunha, 2016. "Relationship Between Innovation And Sustainable Performance," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(06), pages 1-17, August.
    11. Markus Beckmann & Stefan Hielscher & Ingo Pies, 2014. "Commitment Strategies for Sustainability: How Business Firms Can Transform Trade‐Offs Into Win–Win Outcomes," Business Strategy and the Environment, Wiley Blackwell, vol. 23(1), pages 18-37, January.
    12. Zhong, Ray Y. & Huang, George Q. & Lan, Shulin & Dai, Q.Y. & Chen, Xu & Zhang, T., 2015. "A big data approach for logistics trajectory discovery from RFID-enabled production data," International Journal of Production Economics, Elsevier, vol. 165(C), pages 260-272.
    13. Atle Blomgren, 2011. "Does corporate social responsibility influence profit margins? a case study of executive perceptions," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 18(5), pages 263-274, September.
    14. Ante Glavas & Jenny Mish, 2015. "Resources and Capabilities of Triple Bottom Line Firms: Going Over Old or Breaking New Ground?," Journal of Business Ethics, Springer, vol. 127(3), pages 623-642, March.
    15. Lai, Wen-Hsiang & Lin, Chiu-Ching & Wang, Ting-Chu, 2015. "Exploring the interoperability of innovation capability and corporate sustainability," Journal of Business Research, Elsevier, vol. 68(4), pages 867-871.
    16. Ketchen, David Jr. & Rebarick, William & Hult, G. Tomas M. & Meyer, David, 2008. "Best value supply chains: A key competitive weapon for the 21st century," Business Horizons, Elsevier, vol. 51(3), pages 235-243.
    17. Robert B. Gibson, 2006. "Beyond The Pillars: Sustainability Assessment As A Framework For Effective Integration Of Social, Economic And Ecological Considerations In Significant Decision-Making," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 8(03), pages 259-280.
    18. Benjamin Amshoff & Christian Dülme & Julian Echterfeld & Jürgen Gausemeier, 2015. "Business Model Patterns For Disruptive Technologies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 1-22.
    19. Chang-Yung Liu & Jie Yang, 2003. "A Comparative Analysis On Technology Innovation & Diffusion System And Industrial Innovation Between Taiwan And Mainland China," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 7(04), pages 443-473.
    20. Christian Arnold & Daniel Kiel & Kai-Ingo Voigt, 2016. "How The Industrial Internet Of Things Changes Business Models In Different Manufacturing Industries," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(08), pages 1-25, December.
    21. Henning Breuer & Florian Lüdeke-Freund, 2017. "Values-Based Network And Business Model Innovation," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(03), pages 1-35, April.
    22. Abagail McWilliams & Annaleena Parhankangas & Jason Coupet & Eric Welch & Darold T. Barnum, 2016. "Strategic Decision Making for the Triple Bottom Line," Business Strategy and the Environment, Wiley Blackwell, vol. 25(3), pages 193-204, March.
    23. Lehtonen, Markku, 2004. "The environmental-social interface of sustainable development: capabilities, social capital, institutions," Ecological Economics, Elsevier, vol. 49(2), pages 199-214, June.
    24. Beate Littig & Erich Griessler, 2005. "Social sustainability: a catchword between political pragmatism and social theory," International Journal of Sustainable Development, Inderscience Enterprises Ltd, vol. 8(1/2), pages 65-79.
    25. Sven M. Laudien & Birgit Daxböck, 2016. "The Influence Of The Industrial Internet Of Things On Business Model Design: A Qualitative-Empirical Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 20(08), pages 1-28, December.
    26. Graham Hubbard, 2009. "Measuring organizational performance: beyond the triple bottom line," Business Strategy and the Environment, Wiley Blackwell, vol. 18(3), pages 177-191, March.
    27. Thomas Dyllick & Kai Hockerts, 2002. "Beyond the business case for corporate sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 11(2), pages 130-141, March.
    28. Jan F. Tesch & Anne-Sophie Brillinger & Dominik Bilgeri, 2017. "Internet Of Things Business Model Innovation And The Stage-Gate Process: An Exploratory Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(05), pages 1-19, June.
    29. Kiel, Daniel & Arnold, Christian & Voigt, Kai-Ingo, 2017. "The influence of the Industrial Internet of Things on business models of established manufacturing companies – A business level perspective," Technovation, Elsevier, vol. 68(C), pages 4-19.
    30. Sabrina Schneider & Patrick Spieth, 2013. "Business Model Innovation: Towards An Integrated Future Research Agenda," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 17(01), pages 1-34.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Julian Marius Müller & Daniel Kiel & Kai-Ingo Voigt, 2018. "What Drives the Implementation of Industry 4.0? The Role of Opportunities and Challenges in the Context of Sustainability," Sustainability, MDPI, vol. 10(1), pages 1-24, January.
    2. Hendrik S. Birkel & Johannes W. Veile & Julian M. Müller & Evi Hartmann & Kai-Ingo Voigt, 2019. "Development of a Risk Framework for Industry 4.0 in the Context of Sustainability for Established Manufacturers," Sustainability, MDPI, vol. 11(2), pages 1-27, January.
    3. Alessio Maria Braccini & Emanuele Gabriel Margherita, 2018. "Exploring Organizational Sustainability of Industry 4.0 under the Triple Bottom Line: The Case of a Manufacturing Company," Sustainability, MDPI, vol. 11(1), pages 1-17, December.
    4. Ancillai, Chiara & Sabatini, Andrea & Gatti, Marco & Perna, Andrea, 2023. "Digital technology and business model innovation: A systematic literature review and future research agenda," Technological Forecasting and Social Change, Elsevier, vol. 188(C).
    5. Christian Felber & Vanessa Campos & Joan R. Sanchis, 2019. "The Common Good Balance Sheet, an Adequate Tool to Capture Non-Financials?," Sustainability, MDPI, vol. 11(14), pages 1-23, July.
    6. Weking, Jörg & Stöcker, Maria & Kowalkiewicz, Marek & Böhm, Markus & Krcmar, Helmut, 2020. "Leveraging industry 4.0 – A business model pattern framework," International Journal of Production Economics, Elsevier, vol. 225(C).
    7. Robin Hogrefe & Sabine Bohnet-Joschko, 2023. "The Social Dimension of Corporate Sustainability: Review of an Evolving Research Field," Sustainability, MDPI, vol. 15(4), pages 1-22, February.
    8. Ozgur Isil & Michael T. Hernke, 2017. "The Triple Bottom Line: A Critical Review from a Transdisciplinary Perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 26(8), pages 1235-1251, December.
    9. Anselm Schneider, 2015. "Reflexivity in Sustainability Accounting and Management: Transcending the Economic Focus of Corporate Sustainability," Journal of Business Ethics, Springer, vol. 127(3), pages 525-536, March.
    10. Daniela Andreini & Cristina Bettinelli & Nicolai J. Foss & Marco Mismetti, 2022. "Business model innovation: a review of the process-based literature," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 26(4), pages 1089-1121, December.
    11. Philipp Haessler, 2020. "Strategic Decisions between Short-Term Profit and Sustainability," Administrative Sciences, MDPI, vol. 10(3), pages 1-31, September.
    12. Riccardo Brozzi & David Forti & Erwin Rauch & Dominik T. Matt, 2020. "The Advantages of Industry 4.0 Applications for Sustainability: Results from a Sample of Manufacturing Companies," Sustainability, MDPI, vol. 12(9), pages 1-19, May.
    13. Coskun-Setirek, Abide & Tanrikulu, Zuhal, 2021. "Digital innovations-driven business model regeneration: A process model," Technology in Society, Elsevier, vol. 64(C).
    14. Payam Hanafizadeh & Parastou Hatami & Morteza Analoui & Amir Albadvi, 2021. "Business model innovation driven by the internet of things technology, in internet service providers’ business context," Information Systems and e-Business Management, Springer, vol. 19(4), pages 1175-1243, December.
    15. John Holmberg & Johan Larsson, 2018. "A Sustainability Lighthouse—Supporting Transition Leadership and Conversations on Desirable Futures," Sustainability, MDPI, vol. 10(11), pages 1-25, October.
    16. Anselm Schneider & Erika Meins, 2012. "Two Dimensions of Corporate Sustainability Assessment: Towards a Comprehensive Framework," Business Strategy and the Environment, Wiley Blackwell, vol. 21(4), pages 211-222, May.
    17. Sarah Elena Windolph & Dorli Harms & Stefan Schaltegger, 2014. "Motivations for Corporate Sustainability Management: Contrasting Survey Results and Implementation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 21(5), pages 272-285, September.
    18. Kozica, Arjan & Kaiser, Stephan, 2012. "A Sustainability Perspective on Flexible HRM: How to Cope with Paradoxes of Contingent Work," management revue - Socio-Economic Studies, Nomos Verlagsgesellschaft mbH & Co. KG, vol. 23(3), pages 239-261.
    19. Jan F. Tesch & Anne-Sophie Brillinger & Dominik Bilgeri, 2017. "Internet Of Things Business Model Innovation And The Stage-Gate Process: An Exploratory Analysis," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(05), pages 1-19, June.
    20. Judit Nagy & Judit Oláh & Edina Erdei & Domicián Máté & József Popp, 2018. "The Role and Impact of Industry 4.0 and the Internet of Things on the Business Strategy of the Value Chain—The Case of Hungary," Sustainability, MDPI, vol. 10(10), pages 1-25, September.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wsi:ijimxx:v:21:y:2017:i:08:n:s1363919617400151. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/ijim/ijim.shtml .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.