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A decision framework for SMEs to address sustainability issues with Industry 4.0 technologies

Jamwal, Anbesh; Palit, Niladri; Kumari, Sushma; Agrawal, Rajeev; Sharma, Monica

Authors

Anbesh Jamwal

Niladri Palit

Profile image of Sushma Kumari

Dr. Sushma Kumari S.Kumari@hull.ac.uk
Senior Lecturer and Programme Director- MSc Logistics and Supply Chain Management and Education Lead Logistics and Supply Chain Management

Rajeev Agrawal

Monica Sharma



Abstract

This study investigates the adoption of Industry 4.0 technologies in Small and Medium Enterprises (SMEs) within emerging economies, focusing on sustainability and resource efficiency. Extant research often targets larger firms or developed economies, leaving SMEs in emerging markets underexplored. This study proposes a holistic framework for SMEs to enhance Industry 4.0 adoption, addressing sustainability goals while improving competitiveness. Twenty-five enablers of Industry 4.0 adoption were identified through a systematic literature review and validated their significance through a survey of 233 Indian manufacturing SMEs. Using Exploratory Factor Analysis, the enablers were clustered into five groups: Digital and Physical Technologies, Organizational, Supply Chain, Environmental, and Social. Fuzzy-AHP prioritized the enablers, while Fuzzy-DEMATEL explored their interrelationships. Sensitivity analysis validated the results, ensuring robustness. Analyzed results highlight organizational readiness, such as dedicated R&D teams and managerial support. Inter-organizational factors, such as supply chain integration and social enablers with effective policies, were also found to be pivotal. Digital technologies and environmental strategies emerged as factors dependent on robust organizational and policy support. Practical recommendations include targeted resource allocation, skill development, and policy interventions to support digital transformation. This research bridges gaps in Industry 4.0 adoption and advances SME participation in sustainable global supply chains.

Citation

Jamwal, A., Palit, N., Kumari, S., Agrawal, R., & Sharma, M. (2025). A decision framework for SMEs to address sustainability issues with Industry 4.0 technologies. Annals of Operations Research, https://doi.org/10.1007/s10479-025-06560-5

Journal Article Type Article
Acceptance Date Feb 28, 2025
Online Publication Date Mar 12, 2025
Publication Date Jan 1, 2025
Deposit Date Mar 24, 2025
Publicly Available Date Mar 24, 2025
Journal Annals of Operations Research
Print ISSN 0254-5330
Publisher Springer Verlag
Peer Reviewed Peer Reviewed
DOI https://doi.org/10.1007/s10479-025-06560-5
Keywords Industry 4.0; Sustainability; Resource efficiency; Fuzzy AHP; Fuzzy-DEMATEL; Small and medium enterprises (SMEs)
Public URL https://hull-repository.worktribe.com/output/5087477

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Publisher Licence URL
http://creativecommons.org/licenses/by/4.0

Copyright Statement
© The Author(s) 2025.
Open Access This article is licensed under a Creative Commons Attribution 4.0 International License, which permits use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons licence, and indicate if changes were made. The images or other third party material in this article are included in the article’s Creative Commons licence, unless indicated otherwise in a credit line to the material. If material is not included in the article’s Creative Commons licence and your intended use is not permitted by statutory regulation or exceeds the permitted use, you will need to obtain permission directly from the copyright holder. To view a copy of this licence, visit http://creativecommons.org/licenses/by/4.0/.




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