Abstract
Industry 4.0 (I4.0) mainly focuses on manufacturing technology and processes that comprise a cyber-physical system (CPS), Internet of things (IoT), Industrial Internet of things (IIOT), Cognitive Computing and Artificial intelligence as innovation towards the computerization and exchange of information. Though it has been an emerging issue in the industrial and business world, very few studies has been undertaken in the Nepalese case. In this context, the study accesses the industrial readiness for the adoption of I4.0 in Kathmandu valley, Nepal. Explanatory Exploratory research design was adopted to examine if variables chosen actually affect industrial readiness and data was collected through structured questionnaires using both descriptive and inferential statistics via Structural Equation Modeling (SEM). Adopting the census method to collect data, a total of 287 industries located in three industrial estates were taken as a population. Collected data were analyzed using SPSS and AMOS. The study found that the major problem while adopting I4.0 is the lack of skilled manpower in the industrial sector. In addition, we found people, customers, and culture, strategy and leadership, governance and operations have a significant effect on technology innovation decision making. Similarly, government intervention plays a significant mediation role between dependent and independent variables. Furthermore, this study found industries in Nepal are not ready for I4.0 as they are not implementing any enabling technology that enables industry 4.0. These results will support managers/policymakers in recognizing the strategic actions that can be embraced in order to improve the company's readiness level to seek the optimum benefits from the adoption of I4.0 paradigms.
Highlights
The tendency directing to an increasingly the digitally transformed manufacturing environment is an emerging issue for scholars and practitioners of different arenas (Hannola et al, 2018; Richter et al, 2018)
This term for the first time was coined in Germany (Hermann et al, 2016; Bartodziej, 2017) to define a well-proven and established initiative driving the fourth industrial revolution (Chung and Kim, 2016; Min et al, 2019) and used by experts to describe it (Siemens, 2017; Albers et al, 2016; Lu, 2017), has three distinct features that differentiate it from Industry 3.0 (Schwab, 2016): (i) the exponential pace at which technology is evolving; (ii) the breadth and depth of technological advancement, which combines multiple technologies; and (iii) the extent of the impact across the entire system, affecting companies, industries, and whole countries
This is the first study in the Nepalese case that examines the "Industrial Readiness for adaption of Industry 4.0 "
Summary
The tendency directing to an increasingly the digitally transformed manufacturing environment is an emerging issue for scholars and practitioners of different arenas (Hannola et al, 2018; Richter et al, 2018). "Industry 4.000 has been exceedingly popular in recent times in industrial and business arenas This term for the first time was coined in Germany (Hermann et al, 2016; Bartodziej, 2017) to define a well-proven and established initiative driving the fourth industrial revolution (Chung and Kim, 2016; Min et al, 2019) and used by experts to describe it (Siemens, 2017; Albers et al, 2016; Lu, 2017), has three distinct features that differentiate it from Industry 3.0 (Schwab, 2016): (i) the exponential pace at which technology is evolving; (ii) the breadth and depth of technological advancement, which combines multiple technologies; and (iii) the extent of the impact across the entire system, affecting companies, industries, and whole countries.
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