Publication Cover
Production Planning & Control
The Management of Operations
Volume 34, 2023 - Issue 16
1,040
Views
11
CrossRef citations to date
0
Altmetric
Research Articles

How to assess investments in industry 4.0 technologies? A multiple-criteria framework for economic, financial, and sociotechnical factors

ORCID Icon, ORCID Icon, ORCID Icon, ORCID Icon & ORCID Icon
Pages 1583-1602 | Received 14 Oct 2020, Accepted 17 Jan 2022, Published online: 14 Feb 2022

References

  • Agostini, L., and A. Nosella. 2019. “The Adoption of Industry 4.0 Technologies in SMEs: Results of an International Study.” Management Decision 58 (4): 625–643. doi:10.1108/MD-09-2018-0973.
  • Agrifoglio, R., C. Cannavale, E. Laurenza, and C. Metallo. 2017. “How Emerging Digital Technologies Affect Operations Management through co-Creation. Empirical Evidence from the Maritime Industry.” Production Planning & Control 28 (16): 1298–1306. doi:10.1080/09537287.2017.1375150.
  • Alshamaila, Y., S. Papagiannidis, and F. Li. 2013. “Cloud Computing Adoption by SMEs in the North East of England: A Multi-Perspective Framework.” Journal of Enterprise Information Management 26 (3): 250–275. doi:10.1108/17410391311325225.
  • Atkinson, A. A., R. S. Kaplan, E. M. Matsumura, and S. M. Young. 2012. Management Accounting: information for Decision Making and Strategy Execution. Edinburgh: Pearson Education.
  • Bai, C., and J. Sarkis. 2017. “Improving Green Flexibility through Advanced Manufacturing Technology Investment: Modeling the Decision Process.” International Journal of Production Economics 188: 86–104. doi:10.1016/j.ijpe.2017.03.013.
  • Bai, C., P. Dallasega, G. Orzes, and J. Sarkis. 2020. “Industry 4.0 Technologies Assessment: A Sustainability Perspective.” International Journal of Production Economics 229: 107776. doi:10.1016/j.ijpe.2020.107776.
  • Bednar, P. M., and C. Welch. 2020. “Socio-Technical Perspectives on Smart Working: Creating Meaningful and Sustainable Systems.” Information Systems Frontiers 22 (2): 281–298. doi:10.1007/s10796-019-09921-1.
  • Beier, G., A. Ullrich, S. Niehoff, M. Reißig, and M. Habich. 2020. “Industry 4.0: How It is Defined from a Sociotechnical Perspective and How Much Sustainability It includes – A Literature Review.” Journal of Cleaner Production 259: 120856. doi:10.1016/j.jclepro.2020.120856.
  • Benitez, G. B., M. Ferreira-Lima, N. F. Ayala, and A. G. Frank. 2022. “Industry 4.0 Technology Provision: The Moderating Role of Supply Chain Partners to Support Technology Providers.” Supply Chain Management: An International Journal 27 (1): 89–112. doi:10.1108/SCM-07-2020-0304.
  • Benitez, G. B., N. F. Ayala, and A. G. Frank. 2020. “Industry 4.0 Innovation Ecosystems: An Evolutionary Perspective on Value Cocreation.” International Journal of Production Economics 228 (October): 107735. doi:10.1016/j.ijpe.2020.107735.
  • Bose, R., and X. Luo. 2011. “Integrative Framework for Assessing Firms’ Potential to Undertake Green IT Initiatives via virtualization - A Theoretical Perspective.” The Journal of Strategic Information Systems 20 (1): 38–54. doi:10.1016/j.jsis.2011.01.003.
  • Bosman, L., N. Hartman, and J. Sutherland. 2019. “How Manufacturing Firm Characteristics Can Influence Decision Making for Investing in Industry 4.0 Technologies.” Journal of Manufacturing Technology Management 31 (5): 1117–1141. doi:10.1108/JMTM-09-2018-0283.
  • Brynjolfsson, E., and L. Hitt. 1996. “Paradox Lost? Firm-Level Evidence on the Returns to Information Systems Spending.” Management Science 42 (4): 541–558. doi:10.1287/mnsc.42.4.541.
  • Chan, F. T. S., M. H. Chan, H. Lau, and R. W. L. Ip. 2001. “Investment Appraisal Techniques for Advanced Manufacturing Technology (AMT): A Literature Review.” Integrated Manufacturing Systems 12 (1): 35–47. doi:10.1108/09576060110361528.
  • Cheng, Y., R. Matthiesen, S. Farooq, J. Johansen, H. Hu, and L. Ma. 2018. “The Evolution of Investment Patterns on Advanced Manufacturing Technology (AMT) in Manufacturing Operations: A Longitudinal Analysis.” International Journal of Production Economics 203: 239–253. doi:10.1016/j.ijpe.2018.06.019.
  • Cherns, A. 1976. “The Principles of Sociotechnical Design.” Human Relations 8 (9): 783–792.
  • Contador, J. C., W. C. Satyro, J. L. Contador, and M. M. Spinola. 2020. “Flexibility in the Brazilian Industry 4.0: Challenges and Opportunities.” Global Journal of Flexible Systems Management 21 (S1): 15–31. doi:10.1007/s40171-020-00240-y.
  • Copeland, T. E., F. J. Weston, and K. Shastri. 2004. Financial Theory and Corporate Policy. 4th ed. Upper Saddle River, NJ: Prentice Hall.
  • Dalenogare, L. S., G. B. Benitez, N. F. Ayala, and A. G. Frank. 2018. “The Expected Contribution of Industry 4.0 Technologies for Industrial Performance.” International Journal of Production Economics 204 (October): 383–394. doi:10.1016/j.ijpe.2018.08.019.
  • Dalenogare, L. S., M. M. Baseggio, N. F. Ayala, M. A. Le Dain, and A. G. Frank. 2019. “The Contribution of Smart Glasses for PSS.” Procedia CIRP 83: 318–323. doi:10.1016/j.procir.2019.03.307.
  • Davies, P., G. Parry, K. Alves, and I. Ng. 2020. “How Additive Manufacturing Allows Products to Absorb Variety in Use: Empirical Evidence from the Defence Industry.” Production Planning & Control 2020 (0): 1–18. doi:10.1080/09537287.2020.1810763..
  • Davies, R., T. Coole, and A. Smith. 2017. “Review of Socio-Technical Considerations to Ensure Successful Implementation of Industry 4.0.” Procedia Manufacturing 11: 1288–1295. doi:10.1016/j.promfg.2017.07.256.
  • Davis, M. C., R. Challenger, D. N. W. Jayewardene, and C. W. Clegg. 2014. “Advancing Socio-Technical Systems Thinking: A Call for Bravery.” Applied Ergonomics 45 (2): 171–180. doi:10.1016/j.apergo.2013.02.009.
  • Dornelles, J., A. de, N. F. Ayala, and A. G. Frank. 2021. “Smart Working in Industry 4.0: How Digital Technologies Enhance Manufacturing Workers’ Activities.” Computers & Industrial Engineering 2021: 107804. doi:10.1016/j.cie.2021.107804.
  • Dreyer, S., A. Egger, L. Püschel, and M. Röglinger. 2020. “Prioritising Smart Factory investments – A Project Portfolio Selection Approach.” International Journal of Production Research 2020: 1–17. doi:10.1080/00207543.2020.1849845.
  • Enrique, D. V., N. F. Ayala, M. J. D. R. F. Lima, G. A. Marodin, L. Gzara, and A. G. Frank. 2018. “The Use of ICT Tools to Support Collaborative Product Development Activities: Evidences from Brazilian Industry.” Production 28 (0): 99. doi:10.1590/0103-6513.20170099.
  • Evans, L., N. Lohse, and M. Summers. 2013. “A Fuzzy-Decision-Tree Approach for Manufacturing Technology Selection Exploiting Experience-Based Information.” Expert Systems with Applications 40 (16): 6412–6426. doi:10.1016/j.eswa.2013.05.047.
  • Felsberger, A., F. H. Qaiser, A. Choudhary, and G. Reiner. 2020. “The Impact of Industry 4.0 on the Reconciliation of Dynamic Capabilities: Evidence from the European Manufacturing Industries.” Production Planning & Control 2020 (0): 1–24. doi:10.1080/09537287.2020.1810765.
  • Fettermann, D. C., C. G. S. Cavalcante, N. F. Ayala, and M. C. Avalone. 2020. “Configuration of a Smart Meter for Brazilian Customers.” Energy Policy 139: 111309. doi:10.1016/j.enpol.2020.111309.
  • Frank, A. G., D. V. S. Souza, J. L. D. Ribeiro, and M. E. Echeveste. 2013. “A Framework for Decision-Making in Investment Alternatives Selection.” International Journal of Production Research 51 (19): 5866–5883. doi:10.1080/00207543.2013.802393.
  • Frank, A. G., L. S. Dalenogare, and N. F. Ayala. 2019. “Industry 4.0 Technologies: Implementation Patterns in Manufacturing Companies.” International Journal of Production Economics 210 (January): 15–26. doi:10.1016/j.ijpe.2019.01.004.
  • Frank, A. G., N. D. Molle, W. Gerstlberger, J. A. B. Bernardi, and D. C. Pedrini. 2016. “An Integrative Environmental Performance Index for Benchmarking in Oil and Gas Industry.” Journal of Cleaner Production 133: 1190–1203. doi:10.1016/j.jclepro.2016.06.064.
  • Ghobakhloo, M. 2018. “The Future of Manufacturing Industry: A Strategic Roadmap toward Industry 4.0.” Journal of Manufacturing Technology Management 29 (6): 910–936. doi:10.1108/JMTM-02-2018-0057.
  • Ghobakhloo, M. 2019. “Determinants of Information and Digital Technology Implementation for Smart Manufacturing.” International Journal of Production Research 58 (8): 1–22. doi:10.1080/00207543.2019.1630775.
  • Ghobakhloo, M., and N. T. Ching. 2019. “Adoption of Digital Technologies of Smart Manufacturing in SMEs.” Journal of Industrial Information Integration 16: 100107. doi:10.1016/j.jii.2019.100107.
  • Gillani, F., K. A. Chatha, M. S. S. Jajja, and S. Farooq. 2020. “Implementation of Digital Manufacturing Technologies: Antecedents and Consequences.” International Journal of Production Economics 229 (November): 107748. doi:10.1016/j.ijpe.2020.107748.
  • Hendrick, H. W., and B. M. Kleiner. 2001. Macroergonomics: An Introduction to Work System Design. Santa Monica: Human Factors and Ergonomics Society.
  • Herceg, I. V., V. Kuc, V. M. Mijuskovic, and T. Herceg. 2020. “Challenges and Driving Forces for Industry 4.0 Implementation.” Sustainability 12 (10): 208. doi:10.3390/su12104208,
  • Horváth, D., and R. Z. Szabó. 2019. “Driving Forces and Barriers of Industry 4.0: Do Multinational and Small and Medium-Sized Companies Have Equal Opportunities?” Technological Forecasting and Social Change 146: 119–132. doi:10.1016/j.techfore.2019.05.021.
  • Hoyer, C., I. Gunawan, and C. H. Reaiche. 2020. “The Implementation of Industry 4.0 – A Systematic Literature Review of the Key Factors.” Systems Research and Behavioral Science 37 (4): 557–578. doi:10.1002/sres.2701.
  • Jiao, Y.-Y., J. Du, and J. R. Jiao. 2007. “A Financial Model of Flexible Manufacturing Systems Planning under Uncertainty: identification, Valuation and Applications of Real Options.” International Journal of Production Research 45 (6): 1389–1404. doi:10.1080/10298430600677479.
  • Jin, L., R. Mesiar, and R. Yager. 2019. “Ordered Weighted Averaging Aggregation on Convex Poset.” IEEE Transactions on Fuzzy Systems 27 (3): 612–617. doi:10.1109/TFUZZ.2019.2893371.
  • Kadir, B. A., O. Broberg, and C. Souza. 2019. “Current Research and Future Perspectives on Human Factors and Ergonomics in Industry 4.0.” Computers & Industrial Engineering 137 (July): 106004. doi:10.1016/j.cie.2019.106004.
  • Kagermann, H., W. Wahlster, and J. Helbig. 2013. “Recommendations for Implementing the Strategic Initiative INDUSTRIE 4.0.” Final Report of the Industrie 4.0 WG.
  • Kakati, M. 1997. “Strategic Evaluation of Advanced Manufacturing Technology.” International Journal of Production Economics 53 (2): 141–156. doi:10.1016/S0925-5273(97)00115-1.
  • Kamble, S. S., A. Gunasekaran, A. Ghadge, and R. Raut. 2020. “A Performance Measurement System for Industry 4.0 Enabled Smart Manufacturing System in SMMEs- A Review and Empirical Investigation.” International Journal of Production Economics 229: 107853. doi:10.1016/j.ijpe.2020.107853.
  • Kamble, S. S., A. Gunasekaran, and R. Sharma. 2018. “Analysis of the Driving and Dependence Power of Barriers to Adopt Industry 4.0 in Indian Manufacturing Industry.” Computers in Industry 101: 107–119. doi:10.1016/j.compind.2018.06.004.
  • Kessler, E. H. (Ed.). 2013. Encyclopedia of Management Theory. Thousand Oaks: Sage Publications.
  • Kiel, D., J. M. Müller, C. Arnold, and K.-I. Voigt. 2017. “Sustainable Industrial Value Creation: Benefits and Challenges of Industry 4.0.” International Journal of Innovation Management 21 (08): 1740015. doi:10.1142/S1363919617400151.
  • Klingenberg, C. O., M. A. V. Borges, and J. A. V. Antunes. 2019. “Industry 4.0 as a Data-Driven Paradigm: A Systematic Literature Review on Technologies.” Journal of Manufacturing Technology Management 32 (3): 570–592. doi:10.1108/JMTM-09-2018-0325.
  • Kumar, R., H. Singh, and R. Chandel. 2018. “Exploring the Key Success Factors of Advanced Manufacturing Technology Implementation in Indian Manufacturing Industry.” Journal of Manufacturing Technology Management 29 (1): 25–40. doi:10.1108/JMTM-03-2017-0057.
  • Lefley, F. 1996. “The Payback Method of Investment Appraisal: A Review and Synthesis.” International Journal of Production Economics 44 (3): 207–224. doi:10.1016/0925-5273(96)00022-9.
  • Lin, B., W. Wu, and M. Song. 2019. “Industry 4.0: Driving Factors and Impacts on Firm’s Performance: An Empirical Study on China’s Manufacturing Industry.” Annals of Operations Research 2019, 6. doi:10.1007/s10479-019-03433-6.
  • Lu, H.-P., and C.-I. Weng. 2018. “Smart Manufacturing Technology, Market Maturity Analysis and Technology Roadmap in the Computer and Electronic Product Manufacturing Industry.” Technological Forecasting and Social Change 133 (January): 85–94. doi:10.1016/j.techfore.2018.03.005.
  • Mankiw, N. G., and M. P. Taylor. 2006. Microeconomics. Toronto: Thomson Learning.
  • Marcon, E., M. Soliman, W. Gerstlberger, and A. G. Frank. 2021. “Sociotechnical Factors and Industry 4.0: An Integrative Perspective for the Adoption of Smart Manufacturing Technologies.” Journal of Manufacturing Technology Management ahead-of-print (ahead-of-print): early view: 7. doi:10.1108/JMTM-01-2021-0017.
  • Masood, T., and J. Egger. 2019. “Augmented Reality in Support of Industry 4.0 – Implementation Challenges and Success Factors.” Robotics and Computer-Integrated Manufacturing 58: 181–195. doi:10.1016/j.rcim.2019.02.003.
  • Meindl, B., N. F. Ayala, J. Mendonça, and A. G. Frank. 2021. “The Four Smarts of Industry 4.0: Evolution of Ten Years of Research and Future Perspectives.” Technological Forecasting and Social Change 168 (July): 120784. doi:10.1016/j.techfore.2021.120784.
  • Meridith, J. R., and N. C. Surksh. 1986. “Justification Techniques for Advanced Manufacturing Technologies.” International Journal of Production Research 24 (5): 1043–1057. doi:10.1080/00207548608919787.
  • Merigó, J. M., and M. Casanovas. 2011. “Induced Aggregation Operators in the Euclidean Distance and Its Application in Financial Decision Making.” Expert Systems with Applications 38 (6): 7603–7608. doi:10.1016/j.eswa.2010.12.103.
  • Moher, D., L. Shamseer, M. Clarke, D. Ghersi, A. Liberati, M. Petticrew, P. Shekelle, and L. A. Stewart. 2015. “Preferred Reporting Items for Systematic Review and Meta-Analysis Protocols (PRISMA-P) 2015 Statement.” Systematic Reviews 4 (1): 1. doi:10.1186/2046-4053-4-1.
  • Moktadir, M. A., S. M. Ali, S. Kusi-Sarpong, and M. A. A. Shaikh. 2018. “Assessing Challenges for Implementing Industry 4.0: Implications for Process Safety and Environmental Protection.” Process Safety and Environmental Protection 117: 730–741. doi:10.1016/j.psep.2018.04.020.
  • Müller, J. M., D. Kiel, and K.-I. Voigt. 2018. “What Drives the Implementation of Industry 4.0? The Role of Opportunities and Challenges in the Context of Sustainability.” Sustainability 10 (1): 247. doi:10.3390/su10010247.
  • Nguyen, T. U. H., and T. S. Waring. 2013. “The Adoption of Customer Relationship Management (CRM) Technology in SMEs: An Empirical Study.” Journal of Small Business and Enterprise Development 20 (4): 824–848. doi:10.1108/JSBED-01-2012-0013.
  • O’Brien, C., and S. J. E. Smith. 1993. “Design of the Decision Process for Strategic Investment in Advanced Manufacturing Systems.” International Journal of Production Economics 30–31 (C): 309–322. doi:10.1016/0925-5273(93)90101-P.
  • Oesterreich, T. D., and F. Teuteberg. 2016. “Understanding the Implications of Digitisation and Automation in the Context of Industry 4.0: A Triangulation Approach and Elements of a Research Agenda for the Construction Industry.” Computers in Industry 83: 121–139. doi:10.1016/j.compind.2016.09.006.
  • Ordoobadi, S. M. 2012. “Application of ANP Methodology in Evaluation of Advanced Technologies.” Journal of Manufacturing Technology Management 23 (2): 229–252. doi:10.1108/17410381211202214.
  • Pacchini, A. P. T., W. C. Lucato, F. Facchini, and G. Mummolo. 2019. “The Degree of Readiness for the Implementation of Industry 4.0.” Computers in Industry 113 (103125): 103125. doi:10.1016/j.compind.2019.103125.
  • Raj, A., G. Dwivedi, A. Sharma, A. B. L. S. Jabbour, and S. Rajak. 2020. “Barriers to the Adoption of Industry 4.0 Technologies in the Manufacturing Sector: An Inter-Country Comparative Perspective.” International Journal of Production Economics 224: 107546. doi:10.1016/j.ijpe.2019.107546.
  • Rogers, E. M. 2003. Diffusion of Innovations (5th ed.). New York, NY: Free Press.
  • Saaty, T. L. 2004. “Decision Making – The Analytic Hierarchy and Network Processes (AHP/ANP).” Journal of Systems Science and Systems Engineering 13 (1): 1–35. doi:10.1007/s11518-006-0151-5.
  • Sambasivarao, K. V., and S. G. Deshmukh. 1997. “A Decision Support System for Selection and Justification of Advanced Manufacturing Technologies.” Production Planning & Control 8 (3): 270–284. doi:10.1080/095372897235325.
  • Sanguinetti, A., B. Karlin, and R. Ford. 2018. “Understanding the Path to Smart Home Adoption: Segmenting and Describing Consumers across the Innovation-Decision Process.” Energy Research & Social Science 46 (June 2017): 274–283. doi:10.1016/j.erss.2018.08.002.
  • Schuh, G., R. Anderl, R. Dumitrescu, A. Krüger, and M. T. Hompel. 2020. “Industrie 4.0 Maturity Index. Managing the Digital Transformation of Companies – UPDATE 2020 – (Acatech STUDY).”
  • Simões, A. C., A. L. Soares, and A. C. Barros. 2020. “Factors Influencing the Intention of Managers to Adopt Collaborative Robots (Cobots) in Manufacturing Organizations.” Journal of Engineering and Technology Management 57 (July): 101574. doi:10.1016/j.jengtecman.2020.101574.
  • Sony, M., and S. Naik. 2019. “Critical Factors for the Successful Implementation of Industry 4.0: A Review and Future Research Direction.” Production Planning & Control 47 (2): 1–17. doi:10.1080/09537287.2019.1691278.
  • Sony, M., and S. Naik. 2020. “Industry 4.0 Integration with Socio-Technical Systems Theory: A Systematic Review and Proposed Theoretical Model.” Technology in Society 61 (April): 101248. doi:10.1016/j.techsoc.2020.101248.
  • Stentoft, J., K. A. Wickstrom, K. Philipsen, and A. Haug. 2020. “Drivers and Barriers for Industry 4.0 Readiness and Practice: Empirical Evidence from Small and Medium-Sized Manufacturers.” Production Planning & Control 2020, 318. doi:10.1080/09537287.2020.1768318.
  • Strandhagen, J. W., S.-V. Buer, M. Semini, E. Alfnes, and J. O. Strandhagen. 2020. “Sustainability Challenges and How Industry 4.0 Technologies Can Address Them: A Case Study of a Shipbuilding Supply Chain.” Production Planning & Control 0 (0): 1–16. doi:10.1080/09537287.2020.1837940.
  • Tabim, V. M., N. F. Ayala, and A. G. Frank. 2021. “Implementing Vertical Integration in the Industry 4.0 Journey: Which Factors Influence the Process of Information Systems Adoption?” Information Systems Frontiers 2021: 1–18. doi:10.1007/s10796-021-10220-x.
  • Tan, K. H., C. P. Lim, K. Platts, and H. S. Koay. 2006. “An Intelligent Decision Support System for Manufacturing Technology Investments.” International Journal of Production Economics 104 (1): 179–190. doi:10.1016/j.ijpe.2005.02.010.
  • Veile, J. W., D. Kiel, J. M. Müller, and K.-I. Voigt. 2019. “Lessons Learned from Industry 4.0 Implementation in the German Manufacturing Industry.” Journal of Manufacturing Technology Management 31 (5): 977–997. doi:10.1108/JMTM-08-2018-0270.
  • Voss, C., N. Tsikriktsis, and M. Frohlich. 2002. “Case Research in Operations Management.” International Journal of Operations & Production Management 22 (2): 195–219. doi:10.1108/01443570210414329.
  • Wagire, A. A., R. Joshi, A. P. S. Rathore, and R. Jain. 2021. “Development of Maturity Model for Assessing the Implementation of Industry 4.0: Learning from Theory and Practice.” Production Planning & Control 32 (8): 603–620. doi:10.1080/09537287.2020.1744763.
  • Wei, J., P. B. Lowry, and S. Seedorf. 2015. “The Assimilation of RFID Technology by Chinese Companies: A Technology Diffusion Perspective.” Information & Management 52 (6): 628–642. doi:10.1016/j.im.2015.05.001.
  • Yeh, C.-C., and Y.-F. Chen. 2018. “Critical Success Factors for Adoption of 3D Printing.” Technological Forecasting and Social Change 132 (January): 209–216. doi:10.1016/j.techfore.2018.02.003.
  • Yin, R. K. 2009. Case Study Research: Design and Methods. Los Angeles: SAGE.
  • Zhou, H., G. K. Leong, P. Jonsson, and C.-C. Sum. 2009. “A Comparative Study of Advanced Manufacturing Technology and Manufacturing Infrastructure Investments in Singapore and Sweden.” International Journal of Production Economics 120 (1): 42–53. doi:10.1016/j.ijpe.2008.07.013.
  • Zhu, Q., P. Shah, and J. Sarkis. 2018. “Integrating Product Deletion with Lean and Sustainable Supply Chain Management.” International Journal of Production Economics 205: 201–214. doi:10.1016/j.ijpe.2018.08.035.

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.