Industry 4.0 Adoption in Supply Chain Financing for Small and Medium Enterprises: A Systems Theory Approach

Abstract

This article examines the adoption of Industry 4.0 (I4.0) tools in supply chain financing (SCF) for small and medium-sized enterprises (SMEs). The paper proposes a strategy for accelerating I4.0 SCF adoption by outlining the benefits of I4.0 and SCF for SMEs, the challenges of adoption and implementation, and developing a model for adopting SCF I4.0 tools using systems theory. The study highlights the significance of understanding the factors driving I4.0 SCF adoption by SMEs to make better strategic decisions. Additionally, it emphasizes the challenges SMEs face in obtaining funding for their businesses and the benefits of using SCF to address SCM and financing limitations for SMEs. This study employs content analysis of existing literature to present a conceptual framework for implementing Industry 4.0 Supply Chain Finance (I4.0 SCF) in Small and Medium-sized Enterprises (SMEs). The study also provides a comprehensive framework for the adoption of I4.0 SCF, which can help SMEs make informed decisions about the use of I4.0 tools in obtaining Supply Chain Financing. Finally, the study maps the adoption strategies onto the Systems framework, showing how I4.0 adoption can be achieved.