Keywords
Industry 4.0
internationalization
small firms
internationalization
small firms
How to Cite
Bettiol, M., Capestro, M., De Marchi, V., & Di Maria, E. (2020). Industry 4.0 investments and internationalization: does size matter?. Piccola Impresa Small Business, (2). https://doi.org/10.14596/pisb.355
Received 2019-07-30
Accepted 2020-07-06
Published 2020-07-06
Accepted 2020-07-06
Published 2020-07-06
Abstract
Industry 4.0 technologies (4.0) have the ability to transform the competitiveness of manufacturing firms, providing opportunities to redesign their production and market activities at the international level. However, little is known regarding if and how both small and larger firms exploit such opportunities. Drawing on an original database of Italian firms that have adopted 4.0 technology, this paper explores which new technologies firms adopt, their motivation for doing so, and the impact of this investment. To fill a gap in the literature, it distinguishes between small and medium-large firms, and between global and domestic firms. The results suggest that small and medium-large firms differ in terms of number and the type of technology adopted, which is shaped by their reasons for doing so and in turn influences the effectiveness of the technology. Starker differences emerge when comparing small firms engaging with global sourcing and global markets, suggesting that a firm’s strategy might play a greater role than size in explaining 4.0 adoption patterns.
References
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Ben-Ner, A., & Siemsen, E. (2017). Decentralization and localization of production. California Management Review, 59(2), 5–23. doi.org/10.1177/0008125617695284
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Chiarvesio, M., De Marchi, V., & Di Maria, E. (2015). Environmental innovations and internationalization: Theory and practices. Business Strategy and the Environment, 24(8), 790–801. doi.org/10.1002/bse.1846
Coviello, N. E., & McAuley, A. (1999). Internationalisation and the smaller firm : A review of contemporary empirical research. Management International Review, 39(3), 223–256.
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Dalenogare, L. S., Benitez, G. B., Ayala, N. F. & Frank, A. G. (2018). The expected contribution of Industry 4.0 technologies for industrial performance. International Journal of Production
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http://doi.org/10.1057/palgrave.jibs.8400196
Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104. doi/abs/10.1080/09692290500049805
Hannibal, M., & Knight, G. (2018). Additive manufacturing and the global factory : Disruptive technologies and the location of international business. International Business Review, 27(6), 1116–1127. doi.org/10.1016/j.ibusrev.2018.04.003
Iansiti, M., & Lakhani, K. R. (2014). Digital ubiquity: How connections, sensors, and data are revolutionizing business. Harvard Business Review, (November), 91–99. doi.org/10.1017/CBO9781107415324.004
Ivanov, D., Dolgui, A., & Sokolov, B. (2019). The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of Production Research, 57(3), 829–846. doi.org/10.1080/00207543.2018.1488086
Kagermann, H. (2015) Change through digitization—Value creation in the age of Industry 4.0. In: Albach H., Meffert H., Pinkwart A., Reichwald R. (eds) Management of Permanent Change (pp.23-45). Wiesbaden, Germany: Springer Gabler.
Klotzer, C., Weibenborn, J., & Pflaum, A. (2017). The evolution of cyber-physical systems as a driving force behind digital transformation. Proceedings - 2017 IEEE 19th Conference on Business Informatics, CBI 2017, 2, 5–14. doi.org/10.1109/CBI.2017.8
Lamorgese, A. & Olivieri, E. (Eds.). (2017). Economie regionali. L’economia delle regioni italiane. Roma: Banca d’Italia.
Laplume, A. O., Petersen, B., & Pearce, J. M. (2016). Global value chains from a 3D printing perspective. Journal of International Business Studies, 47(5), 595–609. doi.org/10.1057/jibs.2015.47
Leeflang, P.S., Verhoef, P.C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European Management Journal, 32(1), 1–12. doi.org/10.1016/j.emj.2013.12.001
Liao, Y., Deschamps, F., Loures, E. de F. R., & Ramos, L. F. P. (2017). Past, present and future of Industry 4.0 - a systematic literature review and research agenda proposal. International Journal of Production Research, 55(12), 3609–3629. DOI: 10.1080/00207543.2017.1308576
Martinelli, E. M. (2018). Customer centric innovation: adoption of 3D printing in the Italian jewellery sector. Rivista Piccola Impresa/Small Business, 2. doi.org/10.14596/pisb.300
McAfee, A. (2004). Do you have too much IT? MIT Sloan Management Review. http://doi.org/Article
McKinsey Global Institute. (2015). The Internet of Things: Mapping the value beyond the hype. McKinsey Global Institute, (June), 144.
Mise (Ministero delllo Svilupo Economico). (2018). Italy’s National Plan “Impresa 4.0”,https://www.mise.gov.it/images/stories/documenti/impresa_40_risultati_2017_azioni%202018_rev_eng.pdf
Mittal, S., Khan, M. A., Romero, D., & Wuest, T. (2018). A critical review of smart manufacturing & Industry 4.0 maturity models: Implications for small and medium-sized enterprises (SMEs). Journal of Manufacturing Systems, 49(June), 194–214. doi.org/10.1016/j.jmsy.2018.10.005
Moeuf, A., Pellerin, R., Lamouri, S., Tamayo-Giraldo, S., & Barbaray, R. (2018). The industrial management of SMEs in the era of Industry 4.0. International Journal of Production Research, 56(3), 1118–1136. doi.org/10.1080/00207543.2017.1372647
Müller, J., Dotzauer, V., & Voigt, K. (2017). Industry 4.0 and its Impact on reshoring decisions of german manufacturing enterprises. In Supply Management Research (pp. 165–179). Wiesbaden: Springer Fachmedien Wiesbaden. doi.org/10.1007/978-3-658-18632-6_8
Nosi, C., Pucci, T., & Zanni, L. (2017). No need to choose between innovation and internationalization: When pursuing two strategies at a time leads to firm superior performance. Rivista Piccola Impresa/Small Business, 1, 64-84. doi: 10.14596/pisb.243
Petrick, I. J., & Simpson, T. W. (2013). 3D printing disrupts manufacturing: How economies of one create new rules of competition. Research-Technology Management, 56(6), 12–16. doi.org/10.5437/08956308x5606193
Piccarozzi, M., Aquilani, B., & Gatti, C. (2018). Industry 4.0 in management studies: A systematic literature review. Sustainability, 10(10), 3821. doi.org/10.3390/su10103821
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64–88.
Rehnberg, M., & Ponte, S. (2018). From smiling to smirking? 3D printing, upgrading and the restructuring of global value chains. Global Networks, 18(1), 57–80. doi.org/10.1111/glob.12166
Reinhard, G., Jesper, V., & Stefan, S. (2016). Industry 4.0: Building the digital enterprise. 2016 Global Industry 4.0 Survey, 1–39. http://doi.org/10.1080/01969722.2015.1007734
Roblek, V., Meško, M., & Krapež, A. (2016). A complex view of Industry 4.0. SAGE Open, 6(2). doi.org/10.1177/2158244016653987
Rogers, H., Baricz, N., & Pawar, K. (2016), 3D printing services: Classification, supply chain implications and research agenda. International Journal of Physical Distribution & Logistics Management, 46(10), 886-907. doi.org/10.1108/IJPDLM-07-2016-0210
Schröder, C. (2016). The challenges of Industry 4.0 for small and medium-sized enterprises. Bonn, Germany: Friedrich-Ebert-Stiftung.
Strange, R., & Zucchella, A. (2017). Industry 4.0, global value chains and international business. Multinational Business Review, 25(3), 174–184. doi.org/10.1108/MBR-05-2017-0028
Strnadl, C. F. (2006). Aligning business and IT: The process-driven architecture model. Information Systems Management, 23(4), 67–77. doi.org/10.1201/1078.10580530/46352.23.4.20060901/95115.9
Uden, L., & He, W. (2017). How the Internet of Things can help knowledge management: a case study from the automotive domain. Journal of Knowledge Management, 21(1), 57–70. doi.org/10.1108/JKM-07-2015-0291
Wu, F., Yeniyurt, S., Kim, D., & Cavusgil, S. T. (2006). The impact of information technology on supply chain capabilities and firm performance: A resource-based view. Industrial Marketing Management, 35(4), 493–504. doi.org/10.1016/j.indmarman.2005.05.003
Agostini, L., & Filippini, R. (2019). Organizational and managerial challenges in the path toward Industry 4.0. European Journal of Innovation Management, doi.org/10.1108/EJIM-02-2018-0030.
Almada-Lobo, F. (2016). The Industry 4.0 revolution and the future of Manufacturing Execution Systems (MES). Journal of Innovation Management, 3(4), 16-21. doi.org/10.24840/2183-0606_003.004_0003
Ancarani, A., Di Mauro, C., & Mascali, F. (2019). Backshoring strategy and the adoption of Industry 4.0: Evidence from Europe. Journal of World Business, 54(4), 360-371. doi.org/10.1016/j.jwb.2019.04.003
Agrawal, A., Schaefer, S., & Funke, T. (2018). Incorporating Industry 4.0 in Corporate Strategy. In R. Brunet-Thornton, & F. Martinez, Analyzing the Impacts of Industry 4.0 in Modern Business Environments (pp. 161-176). Hershey, Pennsylvania US: IGI-Global, 161-176.
Babiceanu, R. F., & Seker, R. (2016). Big Data and virtualization for manufacturing cyber-physical systems: A survey of the current status and future outlook. Computers in Industry, 81, 128–137. doi.org/10.1016/j.compind.2016.02.004
Bharati, P., & Chaudhury, A. (2006), Current status of technology adoption: Micro, small and medium manufacturing firms in Boston. Communications of the ACM, 49(10), 88-93.
Becattini, G., Bellandi, M., & De Propris, L. (Eds.). (2009). A Handbook of Industrial Districts. Cheltenham, UK: Edward Elgar Publishing.
Ben-Ner, A., & Siemsen, E. (2017). Decentralization and localization of production. California Management Review, 59(2), 5–23. doi.org/10.1177/0008125617695284
Bonfanti, A., Del Giudice, M. & Papa, A. (2018). Italian craft firms between digital manufacturing, open innovation, and servitization. Journal of the Knowledge Economy, 9(1), 136–149. doi.org/10.1007/s13132-015-0325-9
Brouthers, K. D., Dung, K., & Rothlauf, F. (2016). Explaining the internationalization of ibusiness firms. Journal of International Business Studies, 47(5), 513–534. http://doi.org/10.1057/jibs.2015.20
Chiarvesio, M., & Romanello, R. (2018). Industry 4.0 technologies and internationalization: Insights from Italian companies. In R. van Tulder, A. Verbeke & L. Piscitello (Eds.) International Business in the Information and Digital Age. Progress in International Business Research (Vol. 3 pp. 357-378). Emerald Publishing Limited.
Chiarvesio, M., De Marchi, V., & Di Maria, E. (2015). Environmental innovations and internationalization: Theory and practices. Business Strategy and the Environment, 24(8), 790–801. doi.org/10.1002/bse.1846
Coviello, N. E., & McAuley, A. (1999). Internationalisation and the smaller firm : A review of contemporary empirical research. Management International Review, 39(3), 223–256.
Coviello, N., Kano, L., & Liesch, P. W. (2017). Adapting the Uppsala model to a modern world : Macro-context and microfoundations. Journal of International Business Studies, 48(9), 1151–1164. doi.org/10.1057/s41267-017-0120-x
Dalenogare, L. S., Benitez, G. B., Ayala, N. F. & Frank, A. G. (2018). The expected contribution of Industry 4.0 technologies for industrial performance. International Journal of Production
Economics, 204, 383–394. doi.org/10.1016/j.ijpe.2018.08.019
Di Gregorio, D., Musteen, M., Thomas, D. E., & Gregorio, D. Di. (2009). Offshore outsourcing as a source of international competitiveness for SMEs. Journal of International Business Studies, 40(6), 969–988. doi.org/10.1057/jibs.2008.90
Dosi, G.; Gambardella, A.; Grazzi, M., & Orsenigo, L. (2008). Technological revolutions and the evolution of industrial structures: Assessing the impact of new technologies upon the size and boundaries of firms. Capitalism and Society, 3(1) DOI: 10.2202/1932-0213.1030
European Union. (2015), User guide to the SME Definition,Publications Office of the European Union, Luxembourghttps://ec.europa.eu/docsroom/documents/15582/attachments/1/translations/en/renditions/pdf
Fernandez, Z., & Nieto, M. J. (2006). Impact of ownership on the international involvement of SMEs. Journal of International Business Studies, 37, 340–351.
http://doi.org/10.1057/palgrave.jibs.8400196
Gereffi, G., Humphrey, J., & Sturgeon, T. (2005). The governance of global value chains. Review of International Political Economy, 12(1), 78–104. doi/abs/10.1080/09692290500049805
Hannibal, M., & Knight, G. (2018). Additive manufacturing and the global factory : Disruptive technologies and the location of international business. International Business Review, 27(6), 1116–1127. doi.org/10.1016/j.ibusrev.2018.04.003
Iansiti, M., & Lakhani, K. R. (2014). Digital ubiquity: How connections, sensors, and data are revolutionizing business. Harvard Business Review, (November), 91–99. doi.org/10.1017/CBO9781107415324.004
Ivanov, D., Dolgui, A., & Sokolov, B. (2019). The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics. International Journal of Production Research, 57(3), 829–846. doi.org/10.1080/00207543.2018.1488086
Kagermann, H. (2015) Change through digitization—Value creation in the age of Industry 4.0. In: Albach H., Meffert H., Pinkwart A., Reichwald R. (eds) Management of Permanent Change (pp.23-45). Wiesbaden, Germany: Springer Gabler.
Klotzer, C., Weibenborn, J., & Pflaum, A. (2017). The evolution of cyber-physical systems as a driving force behind digital transformation. Proceedings - 2017 IEEE 19th Conference on Business Informatics, CBI 2017, 2, 5–14. doi.org/10.1109/CBI.2017.8
Lamorgese, A. & Olivieri, E. (Eds.). (2017). Economie regionali. L’economia delle regioni italiane. Roma: Banca d’Italia.
Laplume, A. O., Petersen, B., & Pearce, J. M. (2016). Global value chains from a 3D printing perspective. Journal of International Business Studies, 47(5), 595–609. doi.org/10.1057/jibs.2015.47
Leeflang, P.S., Verhoef, P.C., Dahlström, P., & Freundt, T. (2014). Challenges and solutions for marketing in a digital era. European Management Journal, 32(1), 1–12. doi.org/10.1016/j.emj.2013.12.001
Liao, Y., Deschamps, F., Loures, E. de F. R., & Ramos, L. F. P. (2017). Past, present and future of Industry 4.0 - a systematic literature review and research agenda proposal. International Journal of Production Research, 55(12), 3609–3629. DOI: 10.1080/00207543.2017.1308576
Martinelli, E. M. (2018). Customer centric innovation: adoption of 3D printing in the Italian jewellery sector. Rivista Piccola Impresa/Small Business, 2. doi.org/10.14596/pisb.300
McAfee, A. (2004). Do you have too much IT? MIT Sloan Management Review. http://doi.org/Article
McKinsey Global Institute. (2015). The Internet of Things: Mapping the value beyond the hype. McKinsey Global Institute, (June), 144.
Mise (Ministero delllo Svilupo Economico). (2018). Italy’s National Plan “Impresa 4.0”,https://www.mise.gov.it/images/stories/documenti/impresa_40_risultati_2017_azioni%202018_rev_eng.pdf
Mittal, S., Khan, M. A., Romero, D., & Wuest, T. (2018). A critical review of smart manufacturing & Industry 4.0 maturity models: Implications for small and medium-sized enterprises (SMEs). Journal of Manufacturing Systems, 49(June), 194–214. doi.org/10.1016/j.jmsy.2018.10.005
Moeuf, A., Pellerin, R., Lamouri, S., Tamayo-Giraldo, S., & Barbaray, R. (2018). The industrial management of SMEs in the era of Industry 4.0. International Journal of Production Research, 56(3), 1118–1136. doi.org/10.1080/00207543.2017.1372647
Müller, J., Dotzauer, V., & Voigt, K. (2017). Industry 4.0 and its Impact on reshoring decisions of german manufacturing enterprises. In Supply Management Research (pp. 165–179). Wiesbaden: Springer Fachmedien Wiesbaden. doi.org/10.1007/978-3-658-18632-6_8
Nosi, C., Pucci, T., & Zanni, L. (2017). No need to choose between innovation and internationalization: When pursuing two strategies at a time leads to firm superior performance. Rivista Piccola Impresa/Small Business, 1, 64-84. doi: 10.14596/pisb.243
Petrick, I. J., & Simpson, T. W. (2013). 3D printing disrupts manufacturing: How economies of one create new rules of competition. Research-Technology Management, 56(6), 12–16. doi.org/10.5437/08956308x5606193
Piccarozzi, M., Aquilani, B., & Gatti, C. (2018). Industry 4.0 in management studies: A systematic literature review. Sustainability, 10(10), 3821. doi.org/10.3390/su10103821
Porter, M. E., & Heppelmann, J. E. (2014). How smart, connected products are transforming competition. Harvard Business Review, 92(11), 64–88.
Rehnberg, M., & Ponte, S. (2018). From smiling to smirking? 3D printing, upgrading and the restructuring of global value chains. Global Networks, 18(1), 57–80. doi.org/10.1111/glob.12166
Reinhard, G., Jesper, V., & Stefan, S. (2016). Industry 4.0: Building the digital enterprise. 2016 Global Industry 4.0 Survey, 1–39. http://doi.org/10.1080/01969722.2015.1007734
Roblek, V., Meško, M., & Krapež, A. (2016). A complex view of Industry 4.0. SAGE Open, 6(2). doi.org/10.1177/2158244016653987
Rogers, H., Baricz, N., & Pawar, K. (2016), 3D printing services: Classification, supply chain implications and research agenda. International Journal of Physical Distribution & Logistics Management, 46(10), 886-907. doi.org/10.1108/IJPDLM-07-2016-0210
Schröder, C. (2016). The challenges of Industry 4.0 for small and medium-sized enterprises. Bonn, Germany: Friedrich-Ebert-Stiftung.
Strange, R., & Zucchella, A. (2017). Industry 4.0, global value chains and international business. Multinational Business Review, 25(3), 174–184. doi.org/10.1108/MBR-05-2017-0028
Strnadl, C. F. (2006). Aligning business and IT: The process-driven architecture model. Information Systems Management, 23(4), 67–77. doi.org/10.1201/1078.10580530/46352.23.4.20060901/95115.9
Uden, L., & He, W. (2017). How the Internet of Things can help knowledge management: a case study from the automotive domain. Journal of Knowledge Management, 21(1), 57–70. doi.org/10.1108/JKM-07-2015-0291
Wu, F., Yeniyurt, S., Kim, D., & Cavusgil, S. T. (2006). The impact of information technology on supply chain capabilities and firm performance: A resource-based view. Industrial Marketing Management, 35(4), 493–504. doi.org/10.1016/j.indmarman.2005.05.003
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