Problem Statement
The event of I4.0, the rapid evolution of technology has made transformative changes in the
manufacturing environment globally. It is characterized by the use of the Internet of Things,
artificial intelligence, and big data analytics, I4.0 focuses on increased productivity,
competitiveness, and effectiveness (Song et al., 2020). The consideration of advanced
technologies provides opportunities and raises challenges mainly for Chinese manufacturing
companies. The main problem is about impacting the intention of manufacturing enterprises in
China to use I4.0 in their innovation potential and technological readiness. The manufacturing
companies of China are mainly characterized by low-cost manufacturing and labor intensive.
The transition to automated, high-tech systems necessitates a significant investment in training
and new technology. Businesses must evaluate their current technical capabilities and identify
the gaps in their current procedures that must be filled in order to comply with the I4.0 criteria.
This preparedness encompasses both the people and physical resources needed to manage and
operate cutting-edge technologies. The shortage of qualified workers and the requirement for
ongoing development and adaptation are two major challenges that many Chinese businesses
must overcome.
The main factor that affects the intention to consider the I4.0 technology is the commitment from
the top-level management and leadership. In several manufacturing enterprises in China, the
decisions of top executives and vision impact on adoption of advanced technology. Therefore,
the problem lies in linking the leadership vision with strategies. In Chinese manufacturing
enterprises, organizational culture impacts the purpose of adopting the I4.0 technology. In this,
the traditional practices of manufacturing focus on cost minimization and also effectiveness by
simple automation and manual labor (Liu, Lee, and Lee, 2020)). The consideration of the
digitally driven and complex production paradigm needs to change in the company. Therefore,
management support is necessary for enhancing the technology adoption and innovative
environment. The inertia of developed practices, resistance to change, and fear of loss of job can
impact to adoption of the I4.0 technology.
The policy and regulatory environment in China shape the intention to adopt the I4.0 technology
in manufacturing enterprises. Regulation and policies can hinder or facilitate the adoption of new
technology. The Government of China provides robust support for adopting the I4.0 technology
by initiatives like “Made in China 2025” whose purpose is to upgrade the production industries
by encouraging technology integration and innovation. In regards to this, the inconsistencies in
the implementation of policies along with the regulatory issues can develop uncertainties for the
companies (Song et al., 2020).
The competitive pressure and market demand are the main drivers for the adoption of I4.0
technology. The competition has increased globally, and the manufacturing enterprises of China
are under pressure to increase their efficiency and productivity. The need of customers is for
personalized and high-quality products to be enhanced and also delivered at a competitive cost
and quickly (Huang, Yan, and Yang, 2021). The adoption of I4.0 technology-enabled
organizations to meet the demands of the customers by enhancing the process of production and
also through mass personalization. To manage the competitive pressure and market changes,
there needs flexibility and agility which can be more complicated for traditional manufacturing
companies.
References
Song, M., Yang, M. X., Zeng, K. J., & Feng, W. (2020). Green knowledge sharing, stakeholder
pressure, absorptive capacity, and green innovation: Evidence from Chinese manufacturing
firms. Business Strategy and the Environment, 29(3), 1517-1531.
Liu, Y., Lee, J. M., & Lee, C. (2020). The challenges and opportunities of a global health crisis:
the management and business implications of COVID-19 from an Asian perspective. Asian
Business & Management, 19, 277-297.
Huang, R., Yan, P., & Yang, X. (2021). Knowledge map visualization of technology hotspots
and development trends in China’s textile manufacturing industry. IET Collaborative Intelligent
Manufacturing, 3(3), 243-251.