Examining interdependencies among solution dimensions for sustainable development in SMEs based on Industry 4.0 concept

PurposeIn the context of promoting sustainable development in SMEs, the present study aims to investigate the relationship among solution dimensions based on the Industry 4.0 (I4.0) concept.Design/methodology/approachThe study employs a comprehensive methodology that includes a systematic literature review, workshop, grounded theory and interpretive structural modeling. Various dimensions concerning I4.0 sustainability are tested and evaluated using a questionnaire design followed by hypothesis formulation. Further, grounded theory is used to extract the key solution dimensions that capture the essence of I4.0 implementation in SMEs. Finally, the solution dimensions for I4.0 sustainability are modeled using the ISM approach to understand the structural interdependencies among them, and Matrice d'Impacts Croises Multiplication Applied to a Classification (MICMAC) analysis is done to understand the driving and dependence power among these dimensions.FindingsThe study identified 14 solution dimensions for the implementation of I4.0 in SMEs for sustainable development. Out of the 14 solution dimensions, human resource training programs (D4) appear at level 11, followed by top management commitment (D1), strategic collaborations (D3) and coordination among key stakeholders (D5) at level 2 in the hierarchical interpretive structural modeling (ISM) model. Also, these dimensions have an effect size of more than 0.50 which indicates a substantial correlation between the sustainability dimensions and Industry 4.0 implementation in SMEs.Originality/valueThe study contributes to the overall goal of fostering sustainability within the SME sector, which can pave the way for various stakeholders for the successful implementation of I4.0 sustainable solution dimensions.