The effect of IT security issues on the implementation of industry 4.0 in SMEs: Barriers and challenges

Abstract

Our paper explores how IT security issues affect the implementation of Industry 4.0 in small and medium-sized enterprises (SMEs) in the manufacturing sector. To develop this research question, we carry out an empirical study, with a survey of 3184 manufacturing SMEs, using the “Flash Eurobarometer No. 486” database from Eurostat (European Union). Using machine-learning methodology (ML), our contribution extends previous literature on the barriers to the digital transformation of SMEs, showing the role that IT security issues play in this process. Firstly, our findings indicate a positive association between IT security issues and the process of digitalisation within companies. These IT security challenges are perceived as catalysts for digital transformation, particularly in the context of SMEs. Secondly, our research reveals a significant degree of heterogeneity in the levels of digitalisation across companies. This spectrum ranges from firms at the forefront of digital technology integration, incorporating advanced elements like robotics, cloud computing, and smart devices, to another group of companies in the early stages of adopting Industry 4.0 technologies. Lastly, our study underscores the existence of a parallel relationship between IT security issues and the extent of digitalisation within SMEs. This connection highlights the intricate interplay between cybersecurity concerns and the level of digital maturity achieved by these businesses.