Abstract
This study aims to determine the effects of smart factory system management and operational strategies on the innovative performance of small- and medium-sized manufacturing firms. To this end, we administered an empirical survey to 222 hands-on workers who operate smart factories in small- and medium-sized Korean firms. The collected data were analyzed using structural equation modeling and the results showed that the enterprise resource planning (ERP), quality management, ethical management, and productivity management systems had positive effects on innovative performance. The effect of operational strategies on innovative performance was not verified. Consequently, small- and medium-sized firms should focus on establishing ERP systems, which lead to system establishment, standardization of work processes, CEO support and attention, and increase user recognition levels for raising innovative performance.
Highlights
Workers in smart factory environments monitor the production line and, based on recorded data, perform operational management tailored to the productivity and efficiency of manufacturing the best products with the least resources
This study aims to identify the effects of smart factory system management and operational strategies, which are characteristic of Korea’s small- and medium-sized enterprises (SMEs) manufacturing innovation strategies, on innovation performance by conducting an empirical survey and identifying interdisciplinary development measures and practical industry implications [14]
The results showed that enterprise resource planning (ERP), quality management, ethical management, and productivity management as part of system management had a positive effect on the innovation performance of smart factory operation strategies in SMEs, while the operation strategy had no significant effect on innovation performance
Summary
Workers in smart factory environments monitor the production line and, based on recorded data, perform operational management tailored to the productivity and efficiency of manufacturing the best products with the least resources. The introduction of information and communications technology (ICT) allows for quick and accurate support, and the central system of the smart factory saves time and expenses from product distribution to product release. There is a growing trend to build smart factories at the private level [1]. Such systems can be successfully built and operated by ICT when organizations integrate technology and management to create efficient system management through the adoption of smart factories. Small- and medium-sized enterprises (SMEs) recognize the need to introduce smart factory systems, they are concerned about investment due to the lack of expertise regarding their introduction and cost and the technology in relation to the limited abilities of the suppliers [3]
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