Readiness Factor Identification on Kabupaten Karawang SMEs towards Industry 4.0 Era

Rianita Puspa Sari,Deri Teguh Santoso

doi:10.9744/jti.22.1.65-74

Rianita Puspa Sari, Deri Teguh Santoso

Open Access

https://doi.org/10.9744/jti.22.1.65-74

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Abstract

This study aims to explore the readiness of SMEs Karawang in terms of Technology, Organization, Environment (TOE) Framework and technological readiness (TRI) for benefits of industry 4.0 (BOI) in the dimension of industry 4.0 (DOI), viewed from different business scale groups; micro-businesses (group 1) and small-medium businesses (group 2), with a random sampling of 300 SMEs samples using the multigroup-SEM method. The results showed that the feasibility of the research model was quite good from the results of the structural test of the multigroup-SEM. In the micro business (group 1), managerial (TOE) and technology (TRI) MSME readiness factors influence the use of technology pillars in the industry dimension (DOI). In contrast, in small and medium business groups (group 2), the managerial (TOE) and technology (TRI) readiness of MSMEs influence the use of (DOI) and the benefits of the industrial era 4.0 (BOI).

Highlights

Industry 4.0 is a terminology deducted from the fourth industrial revolution, which defined as a new level of organization
The results show that technological readiness (TRI) does not significantly influence the positive benefits of industry 4.0 (BOI), which is not inline to [12] on SMEs' readiness to successfully adopt, use, and benefit from technologies
Karawang SMEs can be said to be ready with a technology readiness (TRI) score of 3.65 in facing the Industrial 4.0 era because there are many young SMEs who can adapt and capture opportunities for current developments and market demand

Summary

Introduction

Industry 4.0 is a terminology deducted from the fourth industrial revolution, which defined as a new level of organization. The presence of Industry 4.0 is to optimize multi-company configuration, suppliers, logistics, resources to the hand of a consumer in real-time It is very profitable for the consumer since it provides a new purchase method to obtain the desired product in a fast way and convenient timing, even to change orders without affecting additional costs. This Symptom awakes many countries on the presence of Industry 4.0, e.g., the Chinese government to create a plan on Industry 4.0 development on 2015 that is called “Made in China 2025” [2]

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