Examining Obstacles to Industry 4.0 Adoption in Indian Manufacturing SMEs through ISM and TOPSIS Analysis: Fid-Bau Portal

Examining Obstacles to Industry 4.0 Adoption in Indian Manufacturing SMEs through ISM and TOPSIS Analysis

Surange, Vinod G. / Sangode, Pallawi B. / Gaikwad, Lokpriya M.

Small and medium-sized enterprises (SMEs) are the mainstay of the Indian manufacturing sector and contribute significantly to the country’s economy. The recent emergence of the fourth industrial revolution (Industry 4.0/I4.0) promises many advantages and future competitiveness for industries through real-time control over information with vertical and horizontal integration across the supply chain. However, there is a sheer number of road-blocks for adopting industry 4.0 technologies, especially in the SME context of developing countries like India. This study examines factors preventing Indian manufacturing SMEs from adopting industry 4.0 technologies. Fourteen obstacles were uncovered in a thorough literature study and analyzed using Interpretive Structural Modelling (ISM) to examine their interrelationships. Inputs from five decision-makers from Indian SMEs having more than twelve years of industrial experience were taken. Indian manufacturing SMEs struggle to implement Industry 4.0 technology due to a lack of financial resources, top management backing, and scepticism about projected advantages and returns on investments. TOPSIS helps rank these hurdles. The top three barriers are “Lack of established examples, policies, and standards,” “Scepticism about expected benefits from investing in Industry 4.0 technologies,” and “Perception that new technologies may quickly become obsolete.”