Adopting Industry 4.0 in developing economies: a roadmap for apparel industry

Abstract

Industry 4.0 (I4.0) presents a collection of interconnected advanced technologies that complement each other for improved organisational performance. However, I4.0 technologies have yet to penetrate industries fully in developing economies. This study aimed at exploring the implementation process of I4.0 in the Sri Lankan apparel sector and developing a roadmap encapsulating the critical steps in the adoption process. A series of structured interviews were conducted with ten IT and innovation experts from apparel firms that have already adopted I4.0 technologies. Content analysis was performed to derive the technological, organisational, and environmental factors to be considered when adopting I4.0. Subsequently, a roadmap for I4.0 adoption has been proposed. Workforce Development, Standardization of Information Systems, Integration with Supply Chain Partners, Developing Regulations for Data Security and Governance, Developing Management Competencies, and Developing External Stakeholder Support have emerged as the roadmap’s stages. Findings further revealed the strategic importance of adopting I4.0 technologies and the lagging benefits due to the lower adoption of I4.0. The apparel firms may use the proposed roadmap as a guide for successful digital transformation towards I4.0 by streamlining the technological, organisational, and environmental factors. However, the roadmap is a stepping-stone in the digitalisation process, where each apparel firm must fabricate the transformation process based on the company’s competencies, strategy, capabilities, and financial constraints.