Does Industry 4.0 really matter for SME innovation?

Abstract

This research, grounded on the organizational information processing theory, studies whether the digital enabling technologies of Industry 4.0 (I4.0) impact innovation in small and medium enterprises (SMEs), and what role innovation strategies play in promoting I4.0 in SMEs. We consider two types of enablers, information and communication digital enabling technologies (IDETs) and advanced robotics and integration digital enabling technologies (ADETs), according to their nature, to demonstrate that different I4.0 enabling technologies play different roles in SME innovations. Results from 109 SMEs show that strategic planning fosters I4.0, and innovation is promoted more intensively by IDETs than by ADETs, with both technologies exerting mediating effects in the relationship between strategy and innovation. Finally, innovation has positive effects on performance.