The Impact of Industry 4.0 on Business Performance: A Multiple Case Study in the Automotive Sector

Abstract

Industry 4.0 (I4.0) is a transformative industrial paradigm that encompasses a set of technologies and principles that are increasingly essential for companies operating in the automotive sector. By embracing the principles and implementing the associated I4.0 technologies, automotive companies have the potential to improve their overall business performance, foster greater collaboration within the supply chain (SC) ecosystem and thereby strengthen their competitive edge. These technologies drive innovation, enabling the development of sustainable solutions and the alignment of products with ever-evolving customer demands. Therefore, this study explores the complex interplay between I4.0 technologies and business performance by providing insights from a multi-case study in the automotive sector. As the exploratory nature of this research is driven by the exploration of pathways, topics such as the implementation of I4.0 technologies, their impact on business performance and current important industry issues such as reshoring and the circular economy (CE) were also discussed. A research protocol was developed and semi-structured interviews were conducted with senior managers from six leading European automotive suppliers. The results show how significant improvements in business performance can be achieved by implementing advanced I4.0 technologies aimed at automating processes and making production lines more flexible. This led to improvements in productivity and product quality, while reducing production costs through the strategic use of available data. Furthermore, European automotive suppliers are engaging in collaborative initiatives with other SC actors to stay abreast of emerging innovation trends, to meet customer needs and to help share knowledge and resources. Overall, the implementation of I4.0 technologies leads directly and indirectly to more sustainable production and efficient resource management, as I4.0 technologies are designed to be energy efficient and reduce emissions.