Abstract
The traditional manufacturing industry has suffered from changing global demands and rapid technology upgrades. It is critical to incorporate innovation into contemporary manufacturing for sustainable development. A comprehensive interpretation of the determinants and directions of technical change is greatly needed. Therefore, this study aims to explore innovative applications that can enhance the value of manufacturing and examine the key factors associated with these innovations. In this paper, three traditional manufacturing industries are analyzed using the research methodologies analytic hierarchy processing (AHP) and Decision Making Trial and Evaluation Laboratory (DEMATEL), resulting in a set of six key criteria for innovative manufacturing. The causal relationships considering the six criteria in three industries are analyzed. The main contribution of this study is to establish a new framework for the sustainable development of traditional manufacturing industries. This could help to support conceptual innovation in these industries and establish a pragmatic approach to increase sustainable development. From the research results, the following suggestions can be made. The traditional manufacturing industries in Taiwan should focus on design and innovation. This can enhance the value-added and international competitiveness of industrial chains, enterprises, and products. Ultimately, it can lead to the sustainable development of Taiwan’s traditional industries.
Highlights
Many enterprises are struggling in the face of globalization and rapid technological advancement
The role of innovation is regarded as a critical capability of enterprises that enhances competitive advantages and allows enterprises to survive in an increasingly changing environment
German industrialization 4.0 was proposed in 2011 and finalized in 2013 to address this issue [4] and mainly focused on various industrial-related technologies to establish so-called smart factories and the integration of various partnerships. These innovations were implemented to provide firms with the ability to gain competitive advantages and earn profits that are systematically higher than those gained by non-innovating companies [5,6]
Summary
Many enterprises are struggling in the face of globalization and rapid technological advancement. Achieving the sustainable development goals (SDGs) proposed by the United Nations is an extremely important issue at present. In response to such issues, researchers have attempted to find innovative ways to make traditional manufacturing industries sustainable. German industrialization 4.0 was proposed in 2011 and finalized in 2013 to address this issue [4] and mainly focused on various industrial-related technologies to establish so-called smart factories and the integration of various partnerships These innovations were implemented to provide firms with the ability to gain competitive advantages and earn profits that are systematically higher than those gained by non-innovating companies [5,6]. If the manufacturing industry cannot be innovative, it will be difficult for it to survive or excel
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