Abstract

This paper examines barriers to the implementation of Industry 4.0 technologies in the manufacturing sector in the context of both developed and developing economies. A comprehensive literature review, followed by discussions with industry experts, identifies 15 barriers, which are analyzed by means of a Grey Decision-Making Trial and Evaluation Laboratory (DEMATEL) approach. The ‘lack of a digital strategy alongside resource scarcity’ emerges as the most prominent barrier in both developed and developing economies. The influencing barriers identified suggest that improvements in standards and government regulation could facilitate the adoption of Industry 4.0 technologies in developing country case, whereas technological infrastructure is needed to promote the adoption of these technologies in developed country case. This study is one of the first to examine the implementation of Industry 4.0 in both developing and developed economies. This article highlights the difficulties in the diffusion of technological innovation resulting from a lack of coordinated national policies on Industry 4.0 in developing countries, which may prevent firms from fully experiencing the Industry 4.0 revolution. The results of this study may help decision makers and practitioners to address the barriers highlighted, paving the way for successful implementation of Industry 4.0 across the manufacturing sector.