Exploring the Intersection of Industry 4.0 and Social Entrepreneurship: A Literature Review and Future Directions

Abstract

Industry 4.0 has affected several industries through AI, big data and IoT integration into various industries for efficiency in production. Nonetheless, the practice of social entrepreneurship has embraced these innovations less than their conventional counterparts because of such challenges as limited access to capital, qualified personnel, and resources. The purpose of this research is to shed light on the specific opportunities Industry 4.0 technologies can unlock for social entrepreneurship to create more value to address social issues with better solutions. In regard to limitations, the current study limits itself to an analysis of past literature, which confines the study findings to the avenues where tools in Industry 4.0 can be most effective in creating a positive impact alongside the manner in which social entrepreneurs could harness the toolbox provided to them by Industry 4.0 to amplify their positive impact on economies, health care, education and conservation of the environment. The review notes a rising trend in scholarly concerns with Industry 4.0 and its implications on social ventures, this discussion also reveals paucity of scientific information especially where there are deficits of concrete empirical data on experience and where there is lack of actual practice of implementing these advanced technologies in short resource environments. In this paper, authors point out that financial, technological, and policy-type challenges keep being the barriers that social entrepreneurs need to overcome to fully capitalise on these innovations. The study concludes that even though Industry 4.0 holds promises for the operationalisation of social enterprise in developing country settings, lack of structures and technical knowledge in the regions acts a limiting factor. To make Industry 4.0 feasible for organizations across the globe with a focus on those in LMICs, the revolution requires integration between technology creators, policy makers, and social entrepreneurs. Another factor significantly tied to these technologies is the emergence of permissive jurisprudential environments and relevant training curricula to safely apply these technologies in the resolution of the world’s problems. Thus, this study adds to the literature on possible impact of Industry 4.0 on social entrepreneurship and calls for more research on the subject to fill the gap that exists in the literature.