Significance of Industry 4.0 technologies in major work functions of manufacturing for sustainable development of small and medium‐sized enterprises

Abstract Industry 4.0 (I4.0) has brought transformative changes in the manufacturing sector. This paper aims to provide a comprehensive analysis of the applications of I4.0 technologies in major work functions of small and medium‐sized enterprises (SMEs). Specifically, this review focuses on the suitability of I4.0 technologies in areas such as New Product Development, Supply Chain Management, Internal Logistics Management, Production Planning Execution and Control, Quality Management, and Maintenance Management. This study employs a systematic literature review (SLR) methodology to comprehensively analyze relevant sources to present valuable perspectives and practical suggestions customized to the requirements of different essential work functions within manufacturing SMEs. The findings of SLR indicate that Big Data Analytics (BDA), Robotics, and Automation are perceived as highly sustainable, on the other hand, blockchain and cloud technology are viewed as having lower sustainability from SMEs' point of view. The findings presented in this article have several theoretical and practical implications including technology selection and integration, and considering sustainability and ethics. This will allow SMEs to seamlessly integrate distinct I4.0 technologies along three dimensions: vertical, horizontal, and end‐to‐end digital integration. This article intends to provide an unbiased assessment to ascertain the landscape occupied by I4.0 in the context of SMEs. This article highlights the connection and synergy between I4.0 and SMEs as well as the pertinence of how advanced technologies of I4.0 can influence the business processes in manufacturing SMEs.