Finding the sweet spot in Industry 4.0 transformation: an exploration of the drivers, challenges and readiness of the Thai sugar industry
Abstract
Purpose
Industry 4.0 is recognised as a competitive strategy that helps implementers optimise their value chain. However, its adoption poses several challenges. This study investigates and ranks the drivers and barriers to implementing Industry 4.0 in the Thai sugar industry, the world's second-largest sugar exporter. It also evaluates the industry's readiness for Industry 4.0.
Design/methodology/approach
The drivers and impediments were identified based on a systematic literature review (SLR) and further investigated using a questionnaire, expert interviews, Pearson's correlation and nonparametric statistical analyses. The IMPULS model was used to assess the industry's readiness.
Findings
Most companies expect to minimise costs, develop employees and improve various elements of operational performance and data tracking capability. Thai sugar producers are still at a low readiness level to deploy Industry 4.0. High investment is the major challenge. Small businesses struggle to hire competent employees, collaborate with a highly credible technology provider and adapt to new solutions.
Practical implications
The findings can serve as a benchmark or guide for sugar manufacturers and companies in other sectors, where Industry 4.0 technologies are not yet widely utilised, to overcome existing roadblocks and make strategic decisions. They can also assist governments in developing policies that foster digital transformation and increase national competitiveness.
Originality/value
There is a scarcity of research on Industry 4.0 execution in the sugar industry. This study addresses this gap by investigating the reasons for the hesitancy of sugar producers to pursue Industry 4.0 and proposing solutions.
Keywords
Acknowledgements
This research was funded by Research and Graduate Studies and Supply Chain and Logistics System Research Unit, Khon Kaen University.
Citation
Sureeyatanapas, P., Pancharoen, D. and Saengprachatanarug, K. (2023), "Finding the sweet spot in Industry 4.0 transformation: an exploration of the drivers, challenges and readiness of the Thai sugar industry", Benchmarking: An International Journal, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/BIJ-10-2022-0625
Publisher
:Emerald Publishing Limited
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