It Takes Two to Tango: Analyzing the Relationship between Technological and Administrative Process Innovations in Industry 4.0

Abstract

Industry 4.0 brings about fundamental changes in company processes. New digital technologies as well as organizational and administrative processes need to be addressed. However, existing research mainly emphasizes the technological aspects of Industry 4.0, paying little attention to the organizational perspective. Conducting a qualitative meta-analysis, this study examines the interplay between technological process innovations and administrative process innovations emergent in Industry 4.0. The results show that technological and administrative process innovations occur both sequentially and simultaneously and complement each other in the context of Industry 4.0. Consequently, the interplay between the two types of innovations is complex in Industry 4.0. Additionally, this study reveals that work design, people management, and strategy are crucial for Industry 4.0 initiatives. The study sheds light on the ways in which firms adopt technological and administrative process innovations in the pursuit of Industry 4.0. Moreover, the findings highlight the importance of considering Industry 4.0 not merely from a technological perspective and provide insights on the various factors that should be considered concerning Industry 4.0.