Polish SMEs on the road to Industry 4.0 – opportunities, challenges and barriers to innovation

Abstract

This article explores the implementation of Industry 4.0 within Polish small and medium-sized enterprises (SMEs), offering insights into the region’s digital transformation patterns. By examining technology adoption patterns, we map the progression of Industry 4.0 among these firms. The study applied a mixed-methods approach, analysing Eurostat and IFR databases for quantitative data on digital technology and robotics use, and comparing Poland’s digital maturity with other EU states. For qualitative insights, we conducted interviews and site visits with 12 industrial firms and 17 digital solution providers. Our analysis highlights two critical factors influencing Industry 4.0 adoption: the firm’s global value chain position and the need to revise development models due to labour shortages. Polish firms predominantly automated distinct segments of their production, integrating robots with existing lines and tasks, and utilized systems that bridged older technologies with newer ones. Yet, they were hesitant to fully embrace comprehensive systems like intelligent factories, unlike Western firms that favoured automation in large-scale production due to labour scarcity and cost. A significant barrier identified for Polish SMEs was a deficient datafication level, evident from the inadequate practices in data collection, analysis and application. These firms often preferred reliance on experience over data-driven decision-making. Additionally, limited capital access hindered their ability to pursue advanced technological investments, impeding their innovation capacity. Polish industrial SMEs prefer a modular digitalization approach over comprehensive overhauls, reflecting a pragmatic strategy to tackle immediate issues and lay groundwork for future technological advancements.