Adoption and barriers of industry 4.0 by micro enterprises

Abstract

Industry 4.0 is often related to large and medium-scale enterprises but its impact on micro-enterprises which are critical contributors to India's economy remains underexplored. This research explores the adoption and obstacles of Industry 4.0 in micro-enterprises with a specific emphasis on the Indian context and provides actionable insights for policymakers and practitioners to enhance Industry 4.0 adoption on in microenterprises. An online data collection was conducted for selected micro-enterprises using a purposive sampling technique, yielding 200 complete responses between November 2023 and February 2024. Logistic regression was used to investigate the variables related to adopt Industry 4.0 whereas OLS regression assessed the intensity of adoption. The study reveals various hurdles to Industry 4.0 adoption in micro-enterprises. The result implied that micro-enterprises should make efforts to overcome the prominent influencing barriers and sensitivity barriers as these barriers can make a significant impact on the Industry 4.0 adoptions. The research has significant implications for policymakers and practitioners. Understanding these barriers can help in developing targeted strategies to foster Industry 4.0 adoption in micro-enterprises, boosting their productivity and competitiveness and contributing to economic growth.