Proposing a four-dimension model to study the drivers of Industry 4.0 technology adoption and service innovation from a moderated mediation perspective

With the help of various Industry 4.0 technologies, service companies can develop new services and respond to customer demands more rapidly. This study proposes a four-dimension model (people, technology, resources, and environment) focusing on the moderation of technological diversity to examine the process of Industry 4.0 technology adoption and service innovation in the service industry in Korea. The findings indicate that: (1) Customer participation and technical resources can directly impact Industry 4.0 technology adoption. (2) Compatibility does not significantly affect adoption but positively influences service innovation.(3) Technology upgrade pressure is crucial for both technology adoption and innovation. (4) Technological diversity can moderate the internal relationships of the proposed model. This study may serve to build a four-dimension model to investigate firm-level adoption of Industry 4.0 technologies and service innovation in the service industry, offering fresh insights for both academia and practitioners.