Managing resources and innovation inside the industry (Industrial) 4.0 Revolution: The role of Supply Chain

Authors

  • Niccolò Fiorini
  • Matteo Devigili
  • Tommaso Pucci
  • Lorenzo Zanni

DOI:

https://doi.org/10.7433/s109.2019.03

Keywords:

industry 4.0; supply chain; innovation; technological resources; business model

Abstract

Purpose of the paper: On the lights of Resource Based View (RBV), this research aims to analyse the impact of resources on Process Innovation (PI) in the context of Industry 4.0 (I4.0), thus proposing stimuli coming from Supply Chain (SC) as moderator of this relationship.

Methodology: Our conceptual model was tested on a sample of 115 Italian firms and data were collected through a structured survey submitted to purchasing and buyer agents/managers.

Results: The econometric analysis shows a positive impact of resources 4.0 on PI, and horizontal stimuli coming from SC (Competitors, Universities, Consultants, and Technology Transfer Offices) were found to positively moderate this relationship. Moreover, post-hoc analysis shows that firms can obtain higher PI outcomes combining the exploitation of horizontal 4.0 stimuli with changes on BM.

Research limitations: This research presents three main limitations: (i) geographic location, all firms are Italian; (ii) timing, it assesses I4.0 in an early stage for the Italian entrepreneurial ecosystem; (iii) moderate sample size.

Practical implications: This study contributes to the understanding of both academic and practitioners of the impact of I4.0 on SC, trying to grasp not only the effect of internal resources but also of external stimuli.

Originality of the paper: To the best of our knowledge this paper is the first one analysing the impact of I4.0 stimuli on SC. Moreover, the survey involved a relevant number of on-field experts in comparison to similar studies on Supply Chain and I4.0 effects.

References

AMIT R., ZOTT C. (2001), “Value creation in e-business”, Strategic Management Journal, vol. 11, n. 22, pp. 493-520.

ARDITO L., PETRUZZELLI A.M., PANNIELLO U., GARAVELLI A.C. (2018), “Towards Industry 4.0: Mapping digital technologies for supply chain management-marketing integration”, Business Process Management Journal, vol. 25, n. 2 pp. 323-346.

ARMSTRONG C.E., SHIMIZU K. (2007), “A review of approaches to empirical research on the resource-based view of the firm”, Journal of Management, vol. 33, n. 6, pp. 959-986.

ARORA A., GAMBARDELLA A. (1994), “Evaluating technological information and utilizing it: Scientific knowledge, technological capability, and external linkages in biotechnology”, Journal of Economic Behavior and Organization, vol. 24, n. 1, pp. 91-114.

ATTI G. (2018a), “L’impresa intelligente e la rivoluzione digitale”, in Atti G., (a cura di), La quarta rivoluzione industriale: verso la supply chain digitale. Il futuro degli acquisti pubblici e privati nell’era digitale. Casi e studi d’impresa, Franco Angeli Edizioni, Milano.

ATTI G. (2018b), “La supply chain digitale e gli acquisti del futuro”, in Atti G., (a cura di), La quarta rivoluzione industriale: verso la supply chain digitale. Il futuro degli acquisti pubblici e privati nell’era digitale. Casi e studi d’impresa, Franco Angeli Edizioni, Milano.

BADEN-FULLER C., HAEFLIGER S. (2013), “Business models and technological innovation”, Long Range Planning, vol. 46, n. 6, pp. 419-426.

BADEN-FULLER C., MANGEMATIN V. (2013), “Business models: a challenging agenda”, Strategic Organization, vol. 11, n. 4, pp. 418-427.

BARNEY J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of Management, vol. 17, n. 1, pp. 99-120.

BARNEY J.B. (2001), “Is the resource-based “view” a useful perspective for strategic management research? Yes”, Academy of Management Review, vol. 26, n. 1, pp. 41-56.

BARRETO L., AMARAL A., PEREIRA T. (2017), “Industry 4.0 implications in logistics: an overview”, Procedia Manufacturing, vol. 13, n. 17, pp. 1245-1252.

BAUER W., SCHLUND S., MARRENBACH D., GANSCHAR O. (2014), Industry 4.0 - VolkswirtschaftlichesPotenzialfür Deutschland, BITKOM, Berlin.

BAUR C., WEE D. (2015), Manufacturing’s next act, McKinsey and Company, Munich.

BEN-DAYA M., HASSINI E., BAHROUN Z. (2017), “Internet of things and supply chain management: a literature review”, International Journal of Production Research, vol. 57, n. 16, pp. 4719-4742.

BERTINI S. (2017), Il posizionamento tecnologico delle supply chain toscane sul tema fabbrica 4.0, Irpet, Firenze.

BIENHAUS F., HADDUD A. (2018), “Procurement 4.0: factors influencing the digitisation of procurement and supply chains”, Business Process Management Journal, vol. 24, n. 4, pp. 965-984.

BIDET-MAYER T., CIET N. (2016), L’industrie du futur: une compétition mondiale, La Fabrique de l’Industrie, Presses des Mines, Paris.

BITTIGHOFER D., DUST M., IRSLINGER A., LIEBICH M., MARTIN L. (2018), “State of Industry 4.0 Across German Companies”, in AA.VV., System Sciences, 2018 IEEE International Conference on Engineering, Technology and Innovation (ICE/ITMC), IEEE, Stuttgart.

BOGERS M., HADAR R., BILBERG A. (2016), “Additive manufacturing for consumer-centric business models: Implications for supply chains in consumer goods manufacturing”, Technological Forecasting and Social Change, vol. 102, n. 2016, pp. 225-239.

BUCY M., HALL S., YAKOLA D. (2016), Transformation with a Capital T, McKinsey Quarterly, Charlotte.

BUTNER K. (2010), “The smarter supply chain of the future”, Strategy and Leadership, vol. 38, n. 1, pp. 22-31.

CALOGHIROU Y., KASTELLI I., TSAKANIKAS A. (2004), “Internal capabilities and external knowledge sources: complements or substitutes for innovative performance?”, Technovation, vol. 24, n. 1, pp. 29-39.

CANTNER U., JOEL K., SCHMIDT T. (2011), “The effects of knowledge management on innovative success - An empirical analysis of German firms”, Research Policy, vol. 40, n. 10, pp. 1453-1462.

CARBONNEAU R., LAFRAMBOISE K., VAHIDOV R. (2008), “Application of machine learning techniques for supply chain demand forecasting”, European Journal of Operational Research, n. 184, pp. 1453-1462.

CARLILE P. R. (2004), “Transferring, translating, and transforming: An integrative framework for managing knowledge across boundaries”, Organization Science, vol. 15, n. 5, pp. 555-568.

CASPRINI E., PUCCI T., ZANNI L. (2014), “Business model shifts: a case study on firms that apply high-technology to cultural goods”, Technology Analysis and Strategic Management, vol. 26, n. 2, pp. 171-187.

CASPRINI E. (2015), “Business model innovation: a typology”, Sinergie Italian Journal of Management, vol. 33, n. 97, pp. 181-197.

CHEN I.J., PAULRAJ A. (2004), “Towards a theory of supply chain management: the constructs and measurements”, Journal of Operations Management, vol. 22, n. 2, pp. 119-150.

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, vol. 204, n. 2018, pp. 383-394.

DI STEFANO G., GAMBARDELLA A., VERONA G. (2012), “Technology push and demand pull perspectives in innovation studies: Current findings and future research directions”, Research Policy, vol. 41, n. 8, pp. 1283-1295.

DING B. (2018), “Pharma industry 4.0: Literature review and research opportunities in sustainable pharmaceutical supply chains”, Process Safety and Environmental Protection, vol. 119, n. 2018, pp. 115-130.

DRATH R., HORCH A. (2014), “Industrie 4.0: Hit or hype?”, IEEE Industrial Electronics Magazine, vol. 8, n. 2, pp. 56-58.

FANTONI G., CERVELLI G., PIRA S., TRIVELLI L., MOCENNI C., ZINGONE R., PUCCI T. (2017a), Impresa 4.0: Siamo Pronti Alla Quarta Rivoluzione Industriale?, Towel Publishing S.r.l.s, Pisa.

FANTONI G., CERVELLI G., PIRA S., TRIVELLI L., MOCENNI C., ZINGONE R., PUCCI T. (2017b), Ecosistemi 4.0: Imprese, Società, Capitale Umano, Fondazione G. Brodolini, Roma.

FERNÁNDEZ-MIRANDA S.S., MARCOS M., PERALTA M.E., AGUAYO F. (2017), “The challenge of integrating Industry 4.0 in the degree of Mechanical Engineering”, Procedia Manufacturing, vol. 13, n. 2017, pp. 1229-1236.

FROHLICH M.T., WESTBROOK R. (2001), “Arcs of integration: an international study of supply chain strategies”, Journal of Operations Management, vol. 19, n. 2, pp. 185-200.

GEBBERS R., ADAMCHUK V. I. (2010), “Precision agriculture and food security”, Science, vol. 327 n. 5967, pp. 828-831.

GEISSBAUER R., VEDSO J., SCHRAUF S. (2016), Industry 4.0: Building the digital enterprise. Retrieved from PwC Website: https://www. pwc. com/gx/en/industries/industries-4.0/landing-page/industry-4.0-building-your-digital-enterprise-april-2016. pdf.

GHOBAKHLOO M. (2018), “The future of manufacturing industry: a strategic roadmap toward Industry 4.0”, Journal of Manufacturing Technology Management, vol. 29, n. 6, pp. 910- 936.

GRANT R.M. (1991), “The resource-based theory of competitive advantage: implications for strategy formulation”, California Management Review, vol. 33, n. 3, pp. 114-135

HAIR J., BLACK W., BABIN B., ANDERSON R. (2010), Multivariate Data Analysis, Pearson Prentice Hall, Englewood Cliffs.

HALLDÓRSSON Á., HSUAN J., KOTZAB H. (2015), “Complementary theories to supply chain management revisited-from borrowing theories to theorizing”, Supply Chain Management: An International Journal, vol. 20, n. 6, pp. 574-586.

HERMANN M., PENTEK T., OTTO B. (2016), “Design principles for industrie 4.0 scenarios”, In AA.VV., System Sciences, 2016 49th Hawaii International Conference on System Sciences (HICSS), IEEE, Koloa.

HORST J., SANTIAGO F. (2018), “What can policymakers learn from Germany’s Industrie 4.0 development strategy?”, Inclusive and Sustainable Industrial Development Working Paper, n. 22.

HENNING K. (2013), Recommendations for implementing the strategic initiative INDUSTRIE 4.0, Forschungsunion, acatech.

KAGERMANN H., WAHLSTER W., HELBIG J. (2013), Securing the Future of German Manufacturing Industry: Recommendations for Implementing the Strategic Initiative INDUSTRIE 4.0 Final Report of the Industrie 4.0 Working Group, German National Academy of Science and Engineering (ACATECH), Berlin.

KANG H.S., LEE J.Y., CHOI S., KIM H., PARK J.H., SON J.Y., KIM B.H., NOH D.S. (2016), “Smart manufacturing: Past research, present findings, and future directions”, International Journal of Precision Engineering and Manufacturing-Green Technology, vol. 3, n. 1, pp. 111-128.

KHAQQI K.N., SIKORSKI J.J., HADINOTO K., KRAFT M. (2018), “Incorporating seller/buyer reputation-based system in blockchain-enabled emission trading application”, Applied Energy, vol. 209, n. 2018, pp. 8-19.

KERSTEN W., BLECKER T., RI C.M. (2015), “The Impact of Industry Supply Chain”, in Kersten W., Blecker T., Ringle C.M. (a cura di), Innovations and strategies for logistics and supply chains, in Proceedings of the Hamburg International Conference of Logistics (HICL), epubli.

KEUPP M.M., PALMIÉ M., GASSMANN O. (2011), “Achieving subsidiary integration in international innovation by managerial “Tools””, Management International Review, vol. 51, n. 2, pp. 213-239.

KOGUT B., ZANDER U. (1992), “Knowledge of the firm, combinative capabilities, and the replication of technology”, Organization Science, vol. 3, n. 3, pp. 383-397.

KOVÁCS G., KOT S. (2016), “New logistics and production trends as the effect of global economy changes”, Polish Journal of Management Studies, vol. 14, n. 2, pp. 115-126.

KREIPL S., PINEDO M. (2004), “Planning and scheduling in supply chains: an overview of issues in practice”, Production and Operations Management, vol. 13, n. 1, pp.77-92.

KUMAR M., GRAHAM G., HENNELLY P., SRAI J. (2016), “How will smart city production systems transform supply chain design: a product-level investigation”, International Journal of Production Research, vol. 54, n. 23, pp. 7181-7192.

LASI H., FETTKE P., KEMPER H. G., FELD T., HOFFMANN M. (2014), “Industry 4.0”, Business and Information Systems Engineering, vol. 6, n. 4, pp. 239-242.

LEE C., LEE K., PENNINGS J. M. (2001), “Internal capabilities, external networks, and performance: a study on technology-based ventures”, Strategic Management Journal, vol. 22, n. 6-7, pp. 615-640.

LI DA XU, ERIC L. XU, LING LI (2018) “Industry 4.0: state of the art and future trends”, International Journal of Production Research, vol. 56, n. 8, pp. 2941-2962.

LIAO Y., DESCHAMPS F., LOURES E.D.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, vol. 55, n. 12, pp. 3609-3629.

LIN K., SHYU J., DING K. (2017), “A cross-strait comparison of innovation policy under industry 4.0 and sustainability development transition”, Sustainability, vol. 9, n. 5, pp. 786.

LÓPEZ LÓPEZ T., RANASINGHE D.C., HARRISON M., MCFARLANE D. (2012), “Adding sense to the Internet of Things”, Personal and Ubiquitous Computing, vol. 16, n. 3, pp. 291-308.

LU Y. (2017), “Industry 4.0: A survey on technologies, applications and open research issues”, Journal of Industrial Information Integration, vol. 6, n. 2017, pp. 1-10.

MAJEED A.A., RUPASINGHE T.D. (2017), “Internet of things (IoT) embedded future supply chains for industry 4.0: An assessment from an ERP-based fashion apparel and footwear industry”, International Journal of Supply Chain Management, vol. 6, n. 1, pp. 25-40.

MASLARIĆ M., NIKOLIČIĆ S. MIRČETIĆ D. (2016), “Logistics response to the industry 4.0: the physical internet”, Open Engineering, vol. 6, n. 2016, pp. 511-517.

MORRIS M., SCHINDEHUTTE M., ALLEN J. (2005), “The entrepreneur’s business model: toward a unified perspective”, Journal of Business Research, vol. 58, n. 6, pp. 726-735.

MÜLLER J.M., KIEL D., VOIGT K.I. (2018), “What drives the implementation of industry 4.0? The role of opportunities and challenges in the context of sustainability”, Sustainability, vol. 10, n. 1, p. 247.

NAKASUMI M. (2017), “Information Sharing for Supply Chain Management Based on Blockchain Technology”, in AA.VV., System Sciences, 2017 IEEE 19th Conference on Business Informatics (CBI), IEEE, Thessaloniki.

PEREIRA A.C., ROMERO F. (2017), “A review of the meanings and the implications of the Industry 4.0 concept”, Procedia Manufacturing, vol. 13, n. 2017, pp. 1206-1214.

POPKOVA E.G., RAGULINA Y.V., BOGOVIZ A.V., (2019), ” Fundamental differences of transition to industry 4.0 from previous industrial revolutions”, in Popkova E.G., Ragulina Y.V., Bogoviz A.V., Industry 4.0: Industrial Revolution of the 21st Century, Springer, Cham.

PRAUSE G. (2015) “Sustainable business models and structures for Industry 4.0”, Journal of Security and Sustainability Issues, vol. 5, n. 2, pp. 159-170.

PUCCI T. (2016), Il modello di business. Caratteri strutturali e dinamiche evolutive, WoltersKluwer/Cedam, Milano.

PUCCI T., NOSI C., ZANNI L. (2017), “Firm capabilities, business model design and performance of SMEs”, Journal of Small Business and Enterprise Development, vol. 24, n. 2, pp. 222-241.

PUCCI T., SIMONI C., ZANNI L. (2013), “Modelli di business e strategie di marketing nelle medie imprese. La gestione della crisi tra continuità e cambiamento”, Mercati e Competitività, n. 3, pp. 25-45.

ROSS D.F. (2016), Introduction to supply chain management technologies, Crc Press, Boca Raton.

ROTHWELL R., DODGSON M. (1991), “External linkages and innovation in small and medium-sized enterprises”, R&D Management, vol. 21, n. 2, pp. 125-138.

RÜßMANN M., LORENZ M., GERBERT P., WALDNER M., JUSTUS J., ENGEL P., HARNISCH M. (2015), “Industry 4.0: The future of productivity and growth in manufacturing industries”, Boston Consulting Group, vol. 9, n. 1, pp. 54-89.

RUSSO F.A. (2018), “Risultati delle Survey su Il futuro degli Acquisti”, in Atti G., (a cura di), La quarta rivoluzione industriale: verso la supply chain digitale. Il futuro degli acquisti pubblici e privati nell’era digitale. Casi e studi d’impresa, Franco Angeli Edizioni, Milano.

SAHAY B.S., RANJAN J. (2008), “Real time business intelligence in supply chain analytics”, Information Management and Computer Security, vol. 16, n. 1, pp. 24-48.

SCHRAUF S., BERTTRAM P. (2016), “Industry 4.0: How digitization makes the supply chain more efficient, agile, and customer-focused”, Strategy and Pwc, vol. 9, n. 2016, pp. 1-32.

SCHMIDT R., MÖHRING M., HÄRTING R.C., REICHSTEIN C., NEUMAIER P., JOZINOVIĆ P. (2015), “Industry 4.0-potentials for creating smart products: empirical research results”, in Abramowicz W., (a cura di), Business Information Systems. BIS 2015. Lecture Notes in Business Information Processing, Springer, Cham.

SUNG T.K. (2018), “Industry 4.0: A Korea perspective”, Technological Forecasting and Social Change, vol. 132, n. 2018, pp. 40-45.

TEECE D. (2010), “Business models, business strategy and innovation”, Long Range Planning, vol. 43, n. 2-3, pp.172-194.

TEECE D. (2017), “Business Model and Dynamic Capabilities”, Long Range Planning, vol. 51, n. 1, pp. 40-49.

TERJESEN S., PATEL P.C. (2017), “In Search of Process Innovations: The Role of Search Depth, Search Breadth, and the Industry Environment”, Journal of Management, vol. 43, n. 5, pp. 1421-1446.

TIAN F. (2016), “An agri-food supply chain traceability system for China based on RFID & blockchain technology”, in AA.VV., Service Systems and Service Management, 2016 13th International Conference on Service Systems and Service Management (ICSSSM) (ICSSSM), IEEE, Kunming.

TJAHJONO B., ESPLUGUES C., ARES E., PELAEZ G. (2017), “What does Industry 4.0 mean to Supply Chain?”, Procedia Manufacturing, vol. 13, n. 2017, pp. 1175-1182.

THAMES L., SCHAEFER D. (2016), “Software-defined cloud manufacturing for industry 4.0”, Procedia CIRP, vol. 52 n. 2016, pp. 12-17.

THOMKE S., VON HIPPEL E. (2002), “Customers as innovators: a new way to create value”, Harvard Business Review, vol. 80, n. 4, pp. 74-85.

TRANTOPOULOS K., VON KROGH G., WALLIN M.W., WOERTER M. (2017), “External knowledge and information technology: implications for process innovation performance”, MIS Quarterly, vol. 41, n. 1, pp. 287-300.

VENKATRAMAN N., HENDERSON J.C. (1998), “Real strategies for virtual organizing”, Sloan Management Review, vol. 40, n. 1, pp. 33-48.

VEUGELERS R., CASSIMAN B. (1999), “Make and buy in innovation strategies: evidence from Belgian manufacturing firms”, Research Policy, vol. 28, n. 1, pp. 63-80.

VISICH J.K., LI S., KHUMAWALA (2009) “Empirical evidence of RFID impacts on supply chain performance”, International Journal of Operations and Production Management, vol. 29, n. 12, pp. 1290-1315.

VON HIPPEL E. (2007), “Horizontal innovation networks-by and for users”, Industrial and Corporate Change, vol. 16, n. 2, pp. 293-315.

WAHL M. (2015), “Strategic Factor Analysis For Industry 4.0”, Journal of Security and Sustainability Issues, vol. 5, n. 2, pp. 241-247.

WAMBA S.F., LEFEBVRE L.A., BENDAVID Y., LEFEBVRE É. (2008), “Exploring the impact of RFID technology and the EPC network on mobile B2B eCommerce: A case study in the retail industry”, International Journal of Production Economics, vol. 112, n. 2, pp. 614-629.

WITKOWSKI K. (2017), “Internet of Things, Big Data, Industry 4.0-Innovative Solutions in Logistics and Supply Chains Management”, Procedia Engineering, vol. 182, n. 2017, pp. 763-769.

ZHONG R.Y., NEWMAN S.T., HUANG G.Q., LAN S. (2016), “Big Data for supply chain management in the service and manufacturing sectors: Challenges, opportunities, and future perspectives”, Computers and Industrial Engineering, vol. 101, n. 2016, pp. 572-591.

ZANNI L., PUCCI T. (2012), “Capacità interne, relazioni esterne e performance in un cluster emergente: un’analisi empirica nel settore Life Sciences”, Atti del XXIV Convegno Annuale Sinergie, Lecce.

ZOTT C., AMIT R., MASSA L. (2011), “The business model: recent developments and future research”, Journal of Management, vol. 37, n. 4, pp. 1019-1042.

Internet Websites

https://hvm.catapult.org.uk;

https://www.adaci.it;

https://www.economie.gouv.fr;

http://www.ifpsm.org;

https://www.manufacturingusa.com;

https://www.mise.gov.it;

https://www.smartindustry.nl.

Downloads

Published

2019-08-30