Boosting Emerging Technology Adoption in SMEs: A Case Study of the Fashion Industry

Main Article Content

Arianne Muthia Zahra
Wawan Dhewanto
Akbar Adhi Utama

Keywords

Emerging Technologies, Fashion Industry, Small and Medium Enterprises, Technology Adoption

Abstract

Small and medium enterprises (SMEs) provide a significant contribution to the economy and are amongst the target of governments’ digital transformation programs. Yet, existing advanced technology adoption models are based upon and targeted for large-scale companies and might not be applicable to the majority of firms in this segment. To address this issue, this study aims to explore ways in boosting the adoption of technologies relevant to SMEs by employing a qualitative research approach through in-depth interviews and focus group discussions with manufacturing SMEs in the fashion industry. Evidence of this study points to several main findings: (1) Leader's competencies, technology literacy, growth mindset, and supportive SME conditions provide positive sentiments towards emerging technologies. However, (2) SMEs must also consider the compatibilities of the technology and evaluate its advantage to the firms prior to adoption. Lastly, (3) stakeholders support and competitors influence are also shown to affect SME leaders, the SME, and the technology itself in terms of supporting technology adoption. This research contributes to the literature by uncovering current condition and needs of SMEs for their technological transformation. For relevant stakeholders, targets of transformation might be achieved if the particular concerns of SMEs have been addressed.

Downloads

Download data is not yet available.
Abstract 1832 | pdf Downloads 1351

References

A.T. Kearney. (2017). Bringing the Fourth Industrial Revolution to Indonesia. National Seminar Outlook Industry.
Agarwal, N., & Brem, A. (2015). Strategic business transformation through technology convergence: Implications from General Electric’s industrial internet initiative. International Journal of Technology Management, 67(2), 196–214. doi: 10.1504/IJTM.2015.068224
Agostini, L., & Filippini, R. (2019). Organizational and managerial challenges in the path toward Industry 4.0. European Journal of Innovation Management, 22(3), 406–421. doi: 10.1108/EJIM-02-2018-0030
Ancarani, A., Di Mauro, C., & Mascali, F. (2019). Backshoring strategy and the adoption of Industry 4.0: Evidence from Europe. Journal of World Business, 54(4), 360–371. doi: 10.1016/j.jwb.2019.04.003
Arcidiacono, F., Ancarani, A., Di Mauro, C., & Schupp, F. (2019). Where the rubber meets the road. Industry 4.0 among SMEs in the automotive sector. IEEE Engineering Management Review. doi: 10.1109/EMR.2019.2932965
Arsha, I. M. R. M., & Natha, K. S. (2013). Pengaruh Tingkat Upah, Jam Kerja, Modal Kerja, Produksi Terhadap Produksi Industri Pakaian Jadi Tekstil: Studi Kasus di Kota Denpasar. E-Jurnal Ekonomi Pembangunan Universitas Udayana, 2(8), 393–400.Bartlett, C. & G. (2002). Managing Across Borders. In Harvard Business Press. Boston.
Benitez, G., Ayala, N., & Frank, A. (2020). Industry 4.0 innovation ecosystems: An evolutionary perspective on value co-creation. International Journal of Production Economics, 228. doi: 10.1016/j.ijpe.2020.107735
Bertola, P., & Teunissen, J. (2018). Fashion 4.0. Innovating fashion industry through digital transformation. Research Journal of Textile and Apparel, 22(4), 352–369. doi: 10.1108/RJTA-03-2018-0023
Bloom, N. & R. (2010). Why Do Management Practices Differ across Firms and Countries? Journal of Economic Perspectives, 24(1). doi: 10.1257/jep.24.1.203
Creswell, J. W. (2014). Research Design. In Sage Publications (4th Editio). California.
Darbanhosseiniamirkhiz, M., & Wan Ismail, W. K. (2012). Advanced manufacturing technology adoption in SMEs: An integrative model. Journal of Technology Management and Innovation, 7(4), 112–120. doi: 10.4067/S0718-27242012000400009
Depietro, R., Wiarda, E., & Fleischer, M. (1990). The context for change: Organization, technology and environment. In Tornatzky & Fleischer (Eds.), The processes of technological innovation (pp. 151–175). Lexington: Lexington Books.
Dhewanto, W., Lestari, Y. D., Herliana, S., & Kania, R. (2020). Information technology adoption model in Indonesian creative industry clusters: toward strengthening competitive advantages. International Journal of Technology Transfer and Commercialisation, 17(1), 19. doi: 10.1504/ijttc.2020.106564
Doyle, F. & Cosgrove, J. (2019). Steps towards digitization of manufacturing in an SME environment. 29th International Conference on Flexible Automation and Intelligent Manufacturing, (38), 540-547.
Frank, A. G., Dalenogare, L. S., & Ayala, N. F. (2019). Industry 4.0 technologies: Implementation patterns in manufacturing companies. International Journal of Production Economics, 210(January), 15–26. doi: 10.1016/j.ijpe.2019.01.004
Ganzarain, J., & Errasti, N. (2016). Three stage maturity model in SME’s towards industry 4.0. Journal of Industrial Engineering and Management, 9(5), 1119–1128. doi: 10.3926/jiem.2073
Garbellano, S. & Da Veiga, M. R. (2019). Dynamic capabilities in leading Italian SMEs adopting Industry 4.0. Measuring Business Excellence, 23(4), 472–483. doi: 10.1108/MBE-06-2019-0058
Garzoni, A., De Turi, I., Secundo, G., & Del Vecchio, P. (2020). Fostering digital transformation of SMEs: a four levels approach. Management Decision. Management Decision, 58(8), 1543–1562. doi: 10.1108/MD-07-2019-0939
Ghobakhloo, M., & Ching, N. T. (2019). Adoption of digital technologies of smart manufacturing in SMEs. Journal of Industrial Information Integration, (16). doi: 10.1016/j.jii.2019.100107
Graf-Vlachy, L., Buhtz, K., & König, A. (2018). Social influence in technology adoption: taking stock and moving forward. Management Review Quarterly, 68(1), 37–76. doi: 10.1007/s11301-017-0133-3
Gualtieri, L., Palomba, I., Wehrle, E. J., & Vidoni, R. (2020). The Opportunities and Challenges of SME Manufacturing Automation: Safety and Ergonomics in Human–Robot Collaboration BT - Industry 4.0 for SMEs:
Challenges, Opportunities and Requirements. In Industry 4.0 for SMEs - Challenges, Opportunities and Requirements. doi: 10.1007/978-3-030-25425-4_4
Kagermann, H., Lukas, W., & Wahlster, W. (2013). Recommendations for implementing the strategic initiative Industrie 4.0: Final report of the Industrie 4.0 Working Group.
Kiel, D., Muller, J., Arnold, C., and Voigt, K. (2017). Sustainable Industrial Value Creation: Benefits and Challenges of Industry 4.0. International Journal of Innovation Management, 21(8). doi:10.1142/S1363919617400151
Kohnová, L., Papula, J., & Salajová, N. (2019). Internal factors supporting business and technological transformation in the context of industry 4.0. Business: Theory and Practice, 20, 137–145. doi: 10.3846/btp.2019.13
Ladge, J., Eddleston, K., & Sugiyama. (2019). Am I an Entrepreneur? How imposter fears hinder women entrepreneurs’ business growth. Business Horizons, 62, 615–624. doi: 10.1016/j.bushor.2019.05.001
Li, J, Meranda, M., & Vekatachalam, A. (2009). Business Process Digitalization and new product development: An empirical study of small and medium-sized manufacturers. International Journal of E-Business Research, 5(1). doi: 10.4018/jebr.2009010103
Maier, M., Korbel, J., and Brem, A. (2014). Industry 4.0: solving the agency dilemma in supply networks through cyber physical systems. EUROMA Proceedings.
Mittal, S., Khan., M., Romero, D., & Wuest, T. (2018). A critical review of smart manufacturing and Industry 4.0 Maturity Models: Implications for Small and Medium-sized Enterprises (SMEs). Journal of Manufacturing Systems, 49, 194–214. doi: 10.1016/j.jmsy.2018.10.005
Moeuf, A., Pellerin, R., Lamouri, S., Tamayo-Giraldo, S., & Barbaray, R. (2018). The industrial management of SMEs in the era of Industry 4.0. International Journal of Production Research, 56(3), 1118–1136. doi: 10.1080/00207543.2017.1372647
Morrar, R., and Arman, H. (2017). The Fourth Industrial Revolution (Industry 4.0): A Social Innovation Perspective. Technology Innovation Management Review, 7 (11), 12–20. doi:10.22215/timreview/1117
Müller, J. M., Kiel, D., & Voigt, K. I. (2018). What drives the implementation of industry 4.0? The role of opportunities and challenges in the context of sustainability. Sustainability, 10(1), 247.
Müller, J., Maier, L., Veile, J., & Voigt, K.I. (2017). Cooperation strategies among SMEs for implementing industry 4.0. Digitalization in Supply Chain Management and Logistics: Smart and Digital Solutions for an Industry 4.0 Environment. Proceedings of the Hamburg International Conference of Logistics (HICL), 23, 301–318. doi: 10.15480/882.
Ngibe, M., & Lekhanya, L. (2019). Critical factors influencing innovative leadership in attaining business innovation: A case of manufacturing SMEs in Kwazulu-Natal. International Journal of Entrepreneurship, 23.
Peillon, S., & Dubruc, N. (2019). Barriers to digital servitization in french manufacturing SMEs. Procedia CIRP, 83, 146–150.
Prause, M. (2019). Challenges of Industry 4.0 technology adoption for SMEs: The case of Japan. Sustainability (Switzerland), 11(20). doi: 10.3390/su11205807
Preuveneers, D. & Ilie-Zudor, E. (2017). The intelligent industry of the future: a survey on emerging trends, research challenges and opportunities in Industry 4.0. Journal of Ambient Intelligence and Smart Environments, 9 (3), 287-298.
Sari, R. P., & Asad, N. (2019). New product development- processes in the fashion industry fashion companies. 10(3), 689–708. doi: 10.1108/JIMA-02-2018-0033
Saunders, M. & Lewis, P. (2012). Doing Research in Business and Management. An Essential Guide to Planning your Project. England: Prentice-Hall.
Theuer, H., & Pahl, M. (2016). MES – Industry 4.0-Ready | MES – Industrie 4.0-ready. Productivity Management, 21(2), 49–55.
Tortorella, G. L., Cawley Vergara, A. M., Garza-Reyes, J. A., & Sawhney, R. (2020). Organizational learning paths based upon industry 4.0 adoption: An empirical study with Brazilian manufacturers. International Journal of Production Economics, 219, 284–294. doi: 10.1016/j.ijpe.2019.06.023
Wang, S., Wan, J., Zhang, D., Li, D., & Zhang, C. (2016). Towards smart factory for industry 4.0. Computer Networks, 101, 158–168.
Yin, R. K. (2014). Case Study Research: Design and Methods. Los Angeles: Sage.
Yunus, E. N. (2020). The mark of industry 4.0: how managers respond to key revolutionary changes. International Journal of Productivity and Performance Management. doi: 10.1108/IJPPM-12-2019-0590