Resources and capabilities for Industry 4.0 implementation: evidence from proactive Portuguese SMEs

Purpose This paper seeks to shed light on the resources and capabilities required by SMEs to successfully implement Industry 4.0 (I4.0) and to explore how these resources and capabilities can be acquired and/or developed. Design/methodology/approach The authors employed an exploratory multiple case study approach to analyze five Portuguese SMEs that have implemented I4.0 technologies. Data were primarily collected through direct semi-structured interviews with managers from different departments and areas. Moreover, a technology, organization and environment (TOE) framework approach was adopted to analyze the resources and capabilities needed for I4.0 implementation in SMEs. Findings Research findings suggest that the analyzed Portuguese SMEs did not require all the considered I4.0 resources and capabilities. Therefore, results may support practitioners to recognize and prioritize the resources and capabilities needed to successfully embrace all the benefits of I4.0. In this regard, SMEs can develop these resources and capabilities needed both internally (e.g. through the process and product innovation focused on digital technologies, human resource management practices and top management commitment) and externally (e.g. hiring skilled employees and through innovative collaboration networks). Originality/value Using the TOE framework, this study shows how SMEs could acquire and develop their resources and capabilities to accelerate I4.0 implementation and maximize its benefits.