Adapting to Industry 4.0: evaluating SMEs preparedness through a comprehensive digital readiness assessment maturity model by validating stakeholders’ perceptions
Love Kumar, Rajiv Kumar Sharma
Abstract
Purpose In the digital transformation era, small and medium-sized enterprises (SMEs) in India face both opportunities and challenges in adopting Industry 4.0 (I4.0) technologies. To ensure successful I4.0 implementation, the study aims to develop a digital readiness assessment model based on stakeholders’ perceptions. Design/methodology/approach This research adopts a mixed-method framework to develop a comprehensive maturity model to assess the digital readiness of SMEs. The framework uses systematic literature review to comprehend I4.0 solution dimensions, followed by empirical validation of dimensions through a questionnaire survey and hypothesis formulation. Findings The digital readiness model is applied to companies working in four SME sectors, namely, automobile, machinery and equipment, pharmaceutical and agriculture. The findings highlight the necessity for sector-specific strategies to enhance digital capabilities, addressing unique challenges and leveraging opportunities for growth. Research limitations/implications The proposed readiness assessment model, developed based on the 14 solution dimensions, 41 prerequisites and six levels, enables the respondents in SMEs to make factual assessments of their digital readiness and initiate efforts toward successful I4.0 implementation. Originality/value This research uniquely combines expert insights, multi-dimensional assessment and rigorous statistical validation to provide a robust conceptual framework for SMEs to navigate their digital transformation journey effectively.