Role of Organizational Learning on Industry 4.0 Awareness and Adoption for Business Performance Improvement

Vijaya Sunder M*, Anupama Prashar, Guilherme Luz Tortorella, V. Raja Sreedharan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

9 Citations (Scopus)

Abstract

In this article, we examine the role of organizational learning on Industry 4.0 (I4.0) deployments for enhancing business performance within the manufacturing industries of developing countries. Based on a survey of 246 manufacturers from 12 developing countries recognized by Deloitte's global manufacturing competitiveness index report, a theoretically derived model was verified using structural equation modeling. This study's results show that I4.0 adoption mediates the impact of I4.0 awareness on organizational learning, and I4.0 adoption and organizational learning serially mediate I4.0 awareness and business performance toward creating smart factories. This study contributes: first, by conceptualization and operationalization of the constructs to clarify the role of organizational learning in I4.0 deployments; second, through an organizational learning hierarchy, it presents I4.0 awareness or familiarity as first-order learning, the experience of adopting I4.0 as the second-order learning, and learning that emerges from cycles of awareness and adoption together (cumulatively) as third-order or meta-learning. This study extends the microfoundations of learning capability in the I4.0 context and opens new agendas for future research and practice. It guides managers to consciously develop higher order learning in I4.0 deployments to safeguard I4.0 investments and enable competitive advantage in digitization.

Original languageEnglish
Pages (from-to)4904-4917
Number of pages14
JournalIEEE Transactions on Engineering Management
Volume71
DOIs
Publication statusPublished - 23 Jan 2023
Externally publishedYes

Keywords

  • Emerging technologies
  • Industry 4.0 (I4.0)
  • manufacturing
  • organizational learning
  • performance

Cite this