Exploiting Industry 4.0 beyond expectations: an empirical study of manufacturing firms

The adoption of various technologies, as measure of the breadth of Industry 4.0, offers multiple benefits that drive technological investment and enhance the competitiveness of manufacturing firms. Based on the literature, we classified the expected benefits and outcomes of Industry 4.0 into two main groups: expected benefits and outcomes related to the market(ing) and manufacturing/production domains. We then used structural equation modelling to link the expected benefits (i.e. drivers) of adoption, Industry 4.0 breadth, and the resulting outcomes with the adopted technologies, based on data for 168 Italian manufacturing firms. The results highlight the key role of market-related benefits, which positively affect the breadth of Industry 4.0 and allow outcomes to be achieved in both the marketing and production domains. Manufacturing firms driven by market factors can meet their expectations in the marketing arena, but also achieve outcomes in the production domain previously not considered for the investment choice. Theoretical and managerial implications have been presented.