Industry 4.0 and Technology Adoption in The Garment Industry

Luthfina Ariyani,Wati Hermawati,Trina Fizzanty,Ardanareswari Ayu Pitaloka,Andi Budiansyah

doi:10.47494/pbft.2021.1.13

Luthfina Ariyani, Wati Hermawati + Show 3 more

Open Access

https://doi.org/10.47494/pbft.2021.1.13

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Abstract

Industry 4.0 is a major change that occurs in the manufacturing industry where the application of internet-based technology and information technology is key in forming a value chain network. This study aims to explore the application of industry 4.0 in the perspective of technology adoption theory, with a qualitative approach to five garment companies in Indonesia. Application of Industry 4.0 is seen in two aspects, namely technology for production and management, and Technology-Organization-Environment (TOE) Framework is used as a reference in analysing the factors that influence companies in adopting industry 4.0. The results of this study indicated that Indonesian garment companies have done a considerable technological transformation into more sophisticated direction. Adoption of new production machines, improvement in software systems, and the new and improved construction of factories that lead to the use of more modern technology were conducted at firm level. However, in general there are no companies that completely deploy industry 4.0. Several factors were identified as the determinants to this adoption process; in the technological context it consists of benefits and costs consideration; in the organizational context, it includes management support and workforce competence; while in the environmental context it consists of the product life cycle, global competition, and government support.

Highlights

Technological developments have entered the fourth industrial revolution era, which began with the introduction of the term "Industry 4.0" by Germany in 2011 and brought a significant impact on industrial world [1]–[4]
Industry 4.0 is described as a major change that have taken place in the manufacturing industry through the further development of sophisticated internet-based information technology; resulting in high flexibility system, enabling cost efficiency, increasing productivity, reducing time-to-market, promoting ergonomic design and accuracy in forecasting, as well as integrating production facilities, supply chains, and service systems within a value chain network [4]–[6]
The Indonesian government rolled out the Making Indonesia 4.0 Program on April 2018 aiming at revitalizing the manufacturing sector in Indonesia, one of which, was through the adoption of industry 4.0 [7]

Summary

Introduction

Technological developments have entered the fourth industrial revolution era, which began with the introduction of the term "Industry 4.0" by Germany in 2011 and brought a significant impact on industrial world [1]–[4]. Industry 4.0 is described as a major change that have taken place in the manufacturing industry through the further development of sophisticated internet-based information technology; resulting in high flexibility system, enabling cost efficiency (e.g. quality control cost, maintenance cost, and inventory cost), increasing productivity, reducing time-to-market, promoting ergonomic design and accuracy in forecasting, as well as integrating production facilities, supply chains, and service systems within a value chain network [4]–[6] Along with these significant promising benefits, the adoption of industry 4.0 has subsequently grown in many industries in various countries, including Indonesia.

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