A decision framework for SMEs to address sustainability issues with Industry 4.0 technologies

This study investigates the adoption of Industry 4.0 technologies in Small and Medium Enterprises (SMEs) within emerging economies, focusing on sustainability and resource efficiency. Extant research often targets larger firms or developed economies, leaving SMEs in emerging markets underexplored. This study proposes a holistic framework for SMEs to enhance Industry 4.0 adoption, addressing sustainability goals while improving competitiveness. Twenty-five enablers of Industry 4.0 adoption were identified through a systematic literature review and validated their significance through a survey of 233 Indian manufacturing SMEs. Using Exploratory Factor Analysis, the enablers were clustered into five groups: Digital and Physical Technologies, Organizational, Supply Chain, Environmental, and Social. Fuzzy-AHP prioritized the enablers, while Fuzzy-DEMATEL explored their interrelationships. Sensitivity analysis validated the results, ensuring robustness. Analyzed results highlight organizational readiness, such as dedicated R&D teams and managerial support. Inter-organizational factors, such as supply chain integration and social enablers with effective policies, were also found to be pivotal. Digital technologies and environmental strategies emerged as factors dependent on robust organizational and policy support. Practical recommendations include targeted resource allocation, skill development, and policy interventions to support digital transformation. This research bridges gaps in Industry 4.0 adoption and advances SME participation in sustainable global supply chains.