article · Journal of Global Information Management
Industry 4.0 helps virtualise production systems and enhance capabilities, yet small and medium-sized enterprises in emerging markets face substantial hurdles due to institutional gaps, limited resources, and scarce public support. An evaluation of survey data from 225 managers reveals how state interventions and internal company structures shape technology uptake. The findings show that government policies and financial subsidies significantly encourage the adoption of Industry 4.0 technologies. Furthermore, state policies and subsidies help transform organisational structures into more transparent and flexible frameworks, which directly streamlines the integration process. Because organisational structure acts as a key mediator between public intervention and technological uptake, targeted government policies paired with sufficient funding and subsidies are essential for driving innovation and digital transformation across smaller businesses.
Smaller enterprises in emerging economies often struggle to modernise production systems due to resource constraints and institutional gaps. Demonstrating that state subsidies and policies prompt internal restructuring and technology uptake provides evidence for policymakers. Targeted financial support helps streamline modern digital manufacturing practices, ensuring smaller enterprises can build competitive industrial capabilities.
The insights apply to policymakers, industrial development agencies, and business advisory bodies designing digital transformation initiatives for small and medium-sized enterprises. Because this is empirical survey research evaluating managerial perceptions, it is an applied policy and management framework rather than a deployable commercial product. It provides strategic evidence to shape subsidy programmes and enterprise restructuring models that support advanced technology implementation.
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Industry 4.0 contributes to the virtualization of production system and enhances capabilities. However, the adoption process poses substantial challenges for SMEs in emerging markets due to institutional voids, resources, and public supports. This study explores the role of government in adopting Industry 4.0 by the SMEs and how organizational structure influences the process. It employed a quantitative approach and surveyed 225 managers. Industry 4.0 adoption is significantly influenced by government policy and subsidies. Government policy and subsidy transform organizational structure to be more transparent and flexible, streamlining them in adopting Industry 4.0. The organizational structure substantially mediates the relationships between government policy, subsidy, and Industry 4.0 adoption. This study implies that governments are vital in helping SMEs to adopt Industry 4.0 in emerging markets. Thus, governments should make policies that support technology adoption by offering sufficient funding/subsidies to boost innovation and technological transformation.
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DOI: 10.4018/jgim.323439
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