Innovation, Digital Transformation and Process Improvement Towards a Better Efficiency on Industrial and Management Systems

A special issue of Systems (ISSN 2079-8954). This special issue belongs to the section "Systems Practice in Social Science".

Deadline for manuscript submissions: closed (1 February 2024) | Viewed by 32760

Special Issue Editors

Department of Mechanical Engineering, ISEP–School of Engineering, Polytechnic of Porto, 4200-072 Porto, Portugal
Interests: tribology; coatings; manufacturing processes
Special Issues, Collections and Topics in MDPI journals
Institute of Mechanical Engineering and Industrial Management (INEGI), School of Engineering, Polytechnic of Porto, 4200-465 Porto, Portugal
Interests: operational research; decision support models; supply chain management; logistics; transportations
Special Issues, Collections and Topics in MDPI journals
Department of Mechanical Engineering, ISEP—School of Engineering, Polytechnic of Porto, 4200-465 Porto, Portugal
Interests: industrial management; lean; six-sigma; processes improvement; safety; sustainability
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Process improvement has been deeply explored in increasing industrial and services competitiveness, reducing waste, making products more competitive and creating a better work environment through enhanced systems. Digitalization and innovation bring new concepts for manufacturing and services based on an increased connectivity and high technology. Are these concepts compatible? Usually, authors work just in one of these concepts, but being the digitalization more modern, it should be based on the knowledge created by the former one. Moreover, processes improvement should converge with the digitalization concept, creating the necessary roots to a real digitalization process. More than making a fusion between concepts, this Special Issue intends to collect high-quality contributions based on Process Improvement or Digitalization approaches describing new theories able to improve manufacturing or services systems, becoming them more sustainable.

The main topics for this Special Issue are as follows:

  • Digitalization of industrial systems;
  • Digitalization of systems supporting services;
  • Development of Lean and Six-Sigma tools/philosophies/methodologies;
  • Process improvement applied to manufacturing systems;
  • Case studies on digitalization of industrial or services systems;
  • Case studies on processes improvement tools development and application.

Prof. Dr. Francisco J. G. Silva
Prof. Dr. Maria Teresa Pereira
Prof. Dr. José Carlos Sá
Prof. Dr. Luís Pinto Ferreira
Guest Editors

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Published Papers (14 papers)

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Research

18 pages, 6075 KiB  
Article
Spatial Characteristics and Influencing Factors of Intercity Innovative Competition Relations in China
by Xinyu Yang, Lizhen Shen, Xia Wang and Xiao Qin
Systems 2024, 12(3), 87; https://doi.org/10.3390/systems12030087 - 07 Mar 2024
Viewed by 594
Abstract
In the knowledge economy era, innovation has become a key emphasis for urban competitions. This paper constructs a theoretical research framework that integrates the basic understandings, influencing factors and ensuing results of intercity innovative competition relations. On the basis of data from the [...] Read more.
In the knowledge economy era, innovation has become a key emphasis for urban competitions. This paper constructs a theoretical research framework that integrates the basic understandings, influencing factors and ensuing results of intercity innovative competition relations. On the basis of data from the general programs of the National Natural Science Foundation of China from 2005 to 2019, this paper constructs intercity innovative competition relations in China, analyses their spatial distribution and quantitative characteristics, and quantitatively investigates the impact of urban innovation capacity and multidimensional proximity (e.g., geographical proximity, institutional proximity and cognitive proximity) on intercity innovative competition relations through a negative binomial model. The study obtained the following findings: (1) In terms of the overall intercity innovative competition relations, the intensity of China’s intercity innovative competition relations gradually increased from 2005 to 2019, with a spatial clustering towards cities with high administrative ranks (e.g., municipalities directly under the central government, sub-provincial cities and provincial capitals); Beijing is always at the centre of innovative competition relations, but its standing has slightly slipped in recent years. (2) From the perspective of disciplines, cities can become benchmarks in particular fields of innovative competitions by competing according to their disciplinary strengths; intercity innovative competition relations in China vary across various academic disciplines. (3) In terms of influencing factors, urban innovation capacity has significant positive effects on intercity innovative competition relations; geographical proximity, institutional proximity and cognitive proximity all have significant positive effects on innovative competition relations; and interactions occur between multidimensional proximities, including a complementary effect between geographical proximity and institutional proximity, a substitutive effect between cognitive proximity and geographical proximity, and a substitutive effect between cognitive proximity and institutional proximity. Full article
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21 pages, 2154 KiB  
Article
The Knowledge Spillover Effect of Multi-Scale Urban Innovation Networks on Industrial Development: Evidence from the Automobile Manufacturing Industry in China
by Weiting Xiong and Jingang Li
Systems 2024, 12(1), 5; https://doi.org/10.3390/systems12010005 - 22 Dec 2023
Viewed by 1226
Abstract
Multi-scale urban innovation networks are important channels for intra- and inter-city knowledge spillovers and play an important role in urban industrial innovation and growth. However, there is a lack of direct evidence on the impact of multi-scale urban innovation networks on industrial development. [...] Read more.
Multi-scale urban innovation networks are important channels for intra- and inter-city knowledge spillovers and play an important role in urban industrial innovation and growth. However, there is a lack of direct evidence on the impact of multi-scale urban innovation networks on industrial development. Drawing upon the “buzz-and-pipeline” model, this paper analyzes the impact of multi-scale urban innovation networks on industrial development by taking the automobile manufacturing industry in China’s five urban agglomerations as an example. Firstly, based on the Form of Correlation between International Patent Classification and Industrial Classification for National Economic Activities (2018) and co-patents, we construct urban innovation networks on three different geographical scales, including intra-city innovation networks, inter-city innovation networks within urban agglomerations, and innovation networks between cities within and beyond urban agglomerations. Then, we employ the ordinary least squares model with fixed effects at the urban agglomeration level to explore the impact of urban multi-scale knowledge linkages on the development of the automobile manufacturing industry and the results showed that urban innovation networks at three different geographical scales have different impacts on industrial development. Specifically, intra-city innovation networks have a facilitating effect on industrial development, while both inter-city innovation networks within urban agglomerations and innovation networks between cities within and beyond urban agglomerations have an inverted U-shaped impact on industrial development. The interactions between urban innovation networks on three different geographical scales have a negative effect on industrial development. Simultaneously, the agglomeration level of urban industry plays a positive moderating role in the impacts of multi-scale urban innovation networks on industrial development. Full article
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28 pages, 1778 KiB  
Article
Conceptualization of DIANA Economy and Global RPM Analysis: Differences in Digitalization Levels of Countries
by Ji Young Jeong, Mamurbek Karimov, Yuldoshboy Sobirov, Olimjon Saidmamatov and Peter Marty
Systems 2023, 11(11), 544; https://doi.org/10.3390/systems11110544 - 09 Nov 2023
Viewed by 2004
Abstract
The economics of globalization are changing due to digitization. The increasing global scope of digital platforms is lowering the cost of cross-border communications, allowing companies to connect with customers and suppliers across borders. This leads to the emergence of new competitors from anywhere [...] Read more.
The economics of globalization are changing due to digitization. The increasing global scope of digital platforms is lowering the cost of cross-border communications, allowing companies to connect with customers and suppliers across borders. This leads to the emergence of new competitors from anywhere in the world, increasing competition within an industry. The main objective of this research was to conduct an analysis of the DIANA Economy and Global RPM and to examine the various definitions and concepts of measuring the digital and analog economies in a comprehensive approach. Furthermore, this study analyzes and ranks the changes that countries around the globe have seen in their digital competitiveness, presenting the foundations of analog and digital economies and refining their definitions. Based on the results, most countries, 41 out of 60, are analog and anatal, which implies that they rely on an analog economy and need to develop digitalization strategies to transition from analog to digital. By providing rankings, policy implications, and strategies tailored to different population categories, it offers a roadmap for countries and businesses seeking to thrive in an increasingly digitalized world. Full article
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28 pages, 2403 KiB  
Article
Unraveling Digital Transformation in Banking: Evidence from Romania
by Alina Elena Ionașcu, Gabriela Gheorghiu, Elena Cerasela Spătariu, Irena Munteanu, Adriana Grigorescu and Alexandra Dănilă
Systems 2023, 11(11), 534; https://doi.org/10.3390/systems11110534 - 02 Nov 2023
Cited by 2 | Viewed by 2465
Abstract
This research probes into the digital transformation shifts in Romania and sets them against a backdrop of certain EU countries. Its primary objective is to spotlight digitalization’s significance and assess its level of integration within the Romanian banking landscape. Our approach relies on [...] Read more.
This research probes into the digital transformation shifts in Romania and sets them against a backdrop of certain EU countries. Its primary objective is to spotlight digitalization’s significance and assess its level of integration within the Romanian banking landscape. Our approach relies on a detailed examination of the adoption of digital banking instruments in Romania through correlation and ANOVA assessments. The ANOVA analysis of the DESI index and its associated dimensions reveals how Romania’s digital transformation stands in relation to other EU member states. Our findings emphasize the numerous advantages Romanian banks have garnered from increasingly embracing digital innovations and artificial technologies. These perks span from optimized operations and efficiency to enhanced customer experiences and a sharpened competitive advantage. The research indicates a strong positive correlation between a bank’s return on assets and its liquid assets to deposits and short-term funding ratios. This suggests that as digital integration deepens, there is a marked upturn in financial robustness. Additionally, the study sheds light on the perks of individuals adopting digital banking offerings and delves into factors that propel and impede the digital evolution in the banking arena. Overall, this paper presents valuable insights into Romania’s digital banking trajectory and the sector’s long-term viability. Full article
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23 pages, 828 KiB  
Article
Enterprise Digital Transformation and Regional Green Innovation Efficiency Based on the Perspective of Digital Capability: Evidence from China
by Wanyu Zhang and Fansheng Meng
Systems 2023, 11(11), 526; https://doi.org/10.3390/systems11110526 - 24 Oct 2023
Viewed by 1716
Abstract
Under the dual pressure of economic development and environmental protection, it is urgent that we improve the efficiency of green innovation. Enterprise digital transformation brings opportunities to improve the efficiency of green innovation. However, most current studies focus on the relationship between the [...] Read more.
Under the dual pressure of economic development and environmental protection, it is urgent that we improve the efficiency of green innovation. Enterprise digital transformation brings opportunities to improve the efficiency of green innovation. However, most current studies focus on the relationship between the two from the micro level, ignoring the impact of enterprise digital transformation on the green innovation of other innovation entities within the region, and have not yet described it in detail from the perspective of digital capabilities. Therefore, based on Chinese data, this paper studies the impact of enterprise digital transformation on regional green innovation efficiency from the perspective of digital capability, and provides a theoretical reference for improving regional green innovation efficiency. The research shows that (1) the digital capabilities of enterprise digital transformation include digital acquisition capability, digital utilization capability, and digital sharing capability, which have significant promoting effects on regional green innovation efficiency; (2) strengthening information resources, knowledge resources, R&D funds, and human resources are the role channels indicated by mechanism analysis; (3) heterogeneity analysis shows that the promotion effect is not related to geographical location, but the disadvantaged areas of enterprise digital transformation and regional green innovation efficiency have a greater impact. Further, the applicability of the research conclusions is extended through case studies in other countries. This study enriches the research perspective of the relationship between enterprise digital transformation and green innovation, and provides a new path for regional sustainable development. Full article
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25 pages, 1626 KiB  
Article
Assessing the Effects of Urban Digital Infrastructure on Corporate Environmental, Social and Governance (ESG) Performance: Evidence from the Broadband China Policy
by Chenchen Zhai, Xinyi Ding, Xue Zhang, Shaoxiang Jiang, Yue Zhang and Chengming Li
Systems 2023, 11(10), 515; https://doi.org/10.3390/systems11100515 - 15 Oct 2023
Cited by 1 | Viewed by 1734
Abstract
Urban digital infrastructure is the cornerstone of optimizing resource allocation and promoting sustainable economic development in the era of digital economy, and it will also affect corporate ESG performance. Based on the data of Chinese A-share listed companies from 2011 to 2021, an [...] Read more.
Urban digital infrastructure is the cornerstone of optimizing resource allocation and promoting sustainable economic development in the era of digital economy, and it will also affect corporate ESG performance. Based on the data of Chinese A-share listed companies from 2011 to 2021, an asymptotic difference-in-difference model is used to investigate the impact of urban digital infrastructure on corporate ESG performance based on the “broadband China” strategy and its underlying mechanism. This paper finds that urban digital infrastructure can promote corporate ESG performance. Further, urban digital infrastructure can contribute to corporate ESG performance by increasing research and development (R&D) investment, improving corporate governance, and increasing information transparency. Through heterogeneity analysis, the results show urban digital infrastructure contributes more significantly to the ESG performance of state-owned, small and medium, growth-stage, and low-profit companies and is more pronounced in non-heavy polluting companies and companies in the central and western regions. This paper has enhanced the theoretical framework of urban digital infrastructure and corporate ESG (environmental, social, and governance) performance, paving the way for a new approach to the collaborative development of cities and enterprises in pursuit of green and sustainable growth. Full article
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12 pages, 516 KiB  
Article
Digital Transformation, Firm Boundaries, and Market Power: Evidence from China’s Listed Companies
by Yang Xu and Chengming Li
Systems 2023, 11(9), 479; https://doi.org/10.3390/systems11090479 - 19 Sep 2023
Cited by 3 | Viewed by 1383
Abstract
Digital transformation is seen as an “elixir” for companies to improve their economic performance and expand their market power in the digital economy. Therefore, how does digital transformation affect enterprises’ market power? This paper used machine learning to construct a digital transformation index [...] Read more.
Digital transformation is seen as an “elixir” for companies to improve their economic performance and expand their market power in the digital economy. Therefore, how does digital transformation affect enterprises’ market power? This paper used machine learning to construct a digital transformation index and used panel data of listed enterprises from 2008 to 2020 to study the impact of digital transformation on market power and its mechanism of action. The findings showed that digital transformation significantly increases market power, and this conclusion still holds after considering potential endogeneity issues and conducting robustness tests. The results of mechanism analysis revealed that digital transformation facilitates endogenous scale expansion and promotes merger and acquisition (M&A), which reshapes firm boundaries and, thus, enhances market power. This paper revealed new changes in the micro-organization of enterprises in the context of digital transformation and provided micro-evidence for the industrial organization effect of digital transformation. Full article
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13 pages, 865 KiB  
Article
Does Innovation Create Employment Indirectly through the Improvement Generated in the Company’s Economic and Financial Results?
by Antonio Fernández-Portillo, Nuria Ramos-Vecino, María Calzado-Barbero and Rafael Robina-Ramírez
Systems 2023, 11(8), 381; https://doi.org/10.3390/systems11080381 - 26 Jul 2023
Viewed by 1248
Abstract
Innovation has traditionally been related to unemployment because people are replaced by machines. By analyzing the different approaches in the literature, we focused on the relationship between innovation and employment with the aim of exploring whether the most innovative companies create more employment, [...] Read more.
Innovation has traditionally been related to unemployment because people are replaced by machines. By analyzing the different approaches in the literature, we focused on the relationship between innovation and employment with the aim of exploring whether the most innovative companies create more employment, or hope to create it, taking into account the company performance. For this purpose, we performed multivariate analysis, using the partials least squares (PLS) technique, to study the direct and indirect relationship between business innovation and employment through the economic and financial performance of the company, focusing on Spanish companies in the year 2022. The results obtained show that innovation has a positive effect on employment and on the performance of the company, and thus on the creation of employment. In conclusion, the administration should encourage business innovation to improve employment rates and company performance. Full article
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23 pages, 644 KiB  
Article
How Does Digital Transformation Increase Corporate Sustainability? The Moderating Role of Top Management Teams
by Yaxin Zhang and Shanyue Jin
Systems 2023, 11(7), 355; https://doi.org/10.3390/systems11070355 - 11 Jul 2023
Cited by 4 | Viewed by 4935
Abstract
Digitization is a megatrend that shapes the economy and society, driving major transformations. Enterprises, as the most important microeconomic entities, are critical carriers for society in conducting digital transformation and practicing sustainable development to achieve socioeconomic and environmental sustainability. Exploring the relationship and [...] Read more.
Digitization is a megatrend that shapes the economy and society, driving major transformations. Enterprises, as the most important microeconomic entities, are critical carriers for society in conducting digital transformation and practicing sustainable development to achieve socioeconomic and environmental sustainability. Exploring the relationship and mechanisms between digital transformation and sustainable corporate development is crucial. This study investigates the influence of digital transformation on sustainable corporate development as well as its moderating mechanisms. A two-way fixed effects model is used on a research sample of Chinese A-share listed companies in Shanghai and Shenzhen from 2010 to 2020. Three methods are used for robustness testing to alleviate endogeneity issues. The empirical results show that digital transformation can significantly enhance sustainable corporate development, whereas empowered management and highly educated employees are essential complementary human resources that effectively strengthen the contribution of digitalization to sustainability. Additionally, internal controls are internal drivers that have a positive moderating effect on the digital transformation to improve corporate sustainability. This study reveals that digital transformation is an important tool for promoting corporate sustainability, broadening the literature in related fields, and providing insights for corporate management and government policymakers to advance corporate sustainability. Full article
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19 pages, 605 KiB  
Article
Digital Transformation and Corporate Sustainability: The Moderating Effect of Ambidextrous Innovation
by Ying Ying and Shanyue Jin
Systems 2023, 11(7), 344; https://doi.org/10.3390/systems11070344 - 05 Jul 2023
Cited by 3 | Viewed by 1854
Abstract
Digital transformation (DT) has become the new normal. Research has focused on the effect of the overall level of DT in enterprises. However, the effects of DT across different dimensions remain unclear. This study divided DT into technology- (TDT) and market-based digital transformation [...] Read more.
Digital transformation (DT) has become the new normal. Research has focused on the effect of the overall level of DT in enterprises. However, the effects of DT across different dimensions remain unclear. This study divided DT into technology- (TDT) and market-based digital transformation (MDT). It examined the effects on corporate sustainability and how ambidextrous innovation affects the relationship between both types and corporate sustainability. This study used the two-way fixed-effects model and the two-stage least squares method to study A-share listed companies in China from 2013 to 2021. The results showed that both TDT and MDT had positive effects on corporate sustainability. The higher the levels of exploratory and exploitative innovation in enterprises, the stronger the contribution of both types of DT to corporate sustainability. The findings validate the research on DT in line with the resource-based view, enrich the literature on and expand the boundary conditions of DT applications across various dimensions, and offer useful insights for practitioners. Full article
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23 pages, 7419 KiB  
Article
Service Mechanism for the Cloud–Edge Collaboration System Considering Quality of Experience in the Digital Economy Era: An Evolutionary Game Approach
by Shiyong Li, Min Xu, Huan Liu and Wei Sun
Systems 2023, 11(7), 331; https://doi.org/10.3390/systems11070331 - 27 Jun 2023
Cited by 2 | Viewed by 861
Abstract
In the digital economy era, cloud–edge collaboration technology provides the necessary technical support for the digital transformation of enterprises, which can improve the quality of services (QoS), and it attracts extensive attention from scholars and entrepreneurs from all fields. Under the bounded-rationality hypothesis, [...] Read more.
In the digital economy era, cloud–edge collaboration technology provides the necessary technical support for the digital transformation of enterprises, which can improve the quality of services (QoS), and it attracts extensive attention from scholars and entrepreneurs from all fields. Under the bounded-rationality hypothesis, this paper investigates the service mechanism for the cloud–edge collaboration system considering the quality of experience (QoE) and presents a dynamic evolutionary game model between cloud service providers and edge operators by applying the evolutionary game theory. Then, this paper analyzes the equilibrium and stability conditions for the decision-making of both parties involved to guarantee the QoE reaches the ideal state. In addition, we investigate the factors that influence the stable cooperation between the two evolutionary stable strategies and validate the theoretical analytical results with numerical simulations. The research results show that the final evolution of the cloud–edge collaboration system depends on the benefits and costs of the game matrix between the two parties and the initial state values of the system. Under a specific condition, the cloud–edge collaboration system can eventually be driven to be an ideal state by reducing the collaboration cost and improving the collaboration benefit. The more both parties focus on the QoE, the more conducive it will be for the formation of a cloud–edge collaboration, thus effectively promoting long-term stability and better serving enterprises’ digital transformation. Full article
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18 pages, 726 KiB  
Article
How Does the Digital Transformation of Banks Improve Efficiency and Environmental, Social, and Governance Performance?
by Yongjie Zhu and Shanyue Jin
Systems 2023, 11(7), 328; https://doi.org/10.3390/systems11070328 - 26 Jun 2023
Viewed by 5209
Abstract
In the era of the digital economy, traditional industries have begun to realize digital transformations. For commercial banks, digital transformation is a trend and a requirement and is the only way to achieve sustainable development. At the same time, at the helm of [...] Read more.
In the era of the digital economy, traditional industries have begun to realize digital transformations. For commercial banks, digital transformation is a trend and a requirement and is the only way to achieve sustainable development. At the same time, at the helm of the enterprise, executives play an essential role in the development of commercial banks. This study explored the relationship between digital bank transformation and bank efficiency, environment, society, and corporate governance (ESG) through empirical analysis, and how executives’ innovation awareness and executive technical background affect the relationships between digital bank transformation, bank efficiency, and ESG. This study used the regression method of fixed effects to conduct empirical research on the data of China’s A-share listed banks from 2011 to 2021. The research results show that the digital transformation of banks has improved efficiency and promoted the ESG performance of commercial banks. At the same time, executives’ innovation consciousness and technical background have played a positive regulatory role in banks’ digital transformation to promote bank efficiency and ESG. The main research object of this study was Chinese commercial banks. The bank’s digital transformation results were examined and the research was expanded to digital transformation and ESG. At the same time, this study has particular significance for investors who have a financial interest in banks. Full article
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12 pages, 413 KiB  
Article
Leading Role of Big Data Analytic Capability in Innovation Performance: Role of Organizational Readiness and Digital Orientation
by Rima H. Binsaeed, Adriana Grigorescu, Zahid Yousaf, Elena Condrea and Abdelmohsen A. Nassani
Systems 2023, 11(6), 284; https://doi.org/10.3390/systems11060284 - 01 Jun 2023
Cited by 2 | Viewed by 1406
Abstract
The advancement of technology offers various opportunities for business organizations to achieve sustainable growth. Through emerging technologies, business organizations are able to collect and analyze essential information vital for the acceleration of innovation. Therefore, this study investigated how big data contribute to the [...] Read more.
The advancement of technology offers various opportunities for business organizations to achieve sustainable growth. Through emerging technologies, business organizations are able to collect and analyze essential information vital for the acceleration of innovation. Therefore, this study investigated how big data contribute to the innovation activities of manufacturing entrepreneurs in terms of big data analytic capability (BDAC). The aim of this study was to relate BDAC to organizational readiness and innovation performance (IP). Moreover, we examined the mediating role of organizational readiness between BDAC and IP. We also examined the strengthening role of digital orientation. To collect the study data, we approached 494 frontline managers of the manufacturing sector of Saudi Arabia. The collected data were analyzed using statistical techniques such as descriptive, correlation, and hierarchical regression techniques. We found that BDAC plays a vital role in developing organizational readiness and IP. The findings also proved that organizational readiness has a significant effect on IP. The results revealed that organizational readiness mediates between BDAC and IP. Full article
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21 pages, 1416 KiB  
Article
Investigating the Impact of Industry 4.0 Technology through a TOE-Based Innovation Model
by Yongping Zhong and Hee Cheol Moon
Systems 2023, 11(6), 277; https://doi.org/10.3390/systems11060277 - 31 May 2023
Cited by 7 | Viewed by 2536
Abstract
Technological change has drastically shaped developments in the manufacturing and service industries. Integrating Industry 4.0 technologies in business practice is an emerging trend for future-oriented enterprises. By linking the TOE (technology-organization-environment) framework with product innovation, process innovation, and company performance, this research proposes [...] Read more.
Technological change has drastically shaped developments in the manufacturing and service industries. Integrating Industry 4.0 technologies in business practice is an emerging trend for future-oriented enterprises. By linking the TOE (technology-organization-environment) framework with product innovation, process innovation, and company performance, this research proposes a TOE-based innovation model to investigate Industry 4.0. The test results identified that Industry 4.0 technology adoption can be determined by compatibility, top management support, and competitive pressures, unexpectedly, not cost or employee capability; technology adoption can only indirectly influence company performance through mediation effects of product and process innovation. Results also revealed that industry type and global trade could play moderation roles in the technology adoption process: compared to the manufacturing industry, employee capability seems to be more influential on technology adoption in the service industry; global trade activities cannot significantly impact the technology adoption process, but trade companies are more likely to achieve more process innovation after such adoption. This study can enrich the theoretical bases of Industry 4.0 and confer a better understanding of the ongoing technological revolution in developing countries, which may offer some new insights for practitioners and academics. Full article
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