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Who Adopts Industry 4.0 Technology?

Authors
이근우이창근최지현김유리
Issue Date
Dec-2022
Publisher
The Korean Data Analysis Society
Keywords
Industry 4.0; technology adoption; TOE framework; firm-level analysis.
Citation
Journal of The Korean Data Analysis Society, v.24, no.6, pp.2065 - 2083
Indexed
KCI
Journal Title
Journal of The Korean Data Analysis Society
Volume
24
Number
6
Start Page
2065
End Page
2083
URI
https://scholarworks.bwise.kr/hanyang/handle/2021.sw.hanyang/182262
DOI
10.37727/jkdas.2022.24.6.2065
ISSN
1229-2354
Abstract
While there are high expectations for the potential of Industry 4.0, we know little about how widely firms use related technologies. This study aims to describe the current status of Industry 4.0 technology adoption and identify the determinants. Compared to most existing studies that focus on specific industries or limited sets of firms, we present more comprehensive adoption patterns across different industries and firms by examining a rich dataset of 9,129 firms from the 2015-2018 Survey of Business Activities conducted by Statistics Korea. Using the Technology-Organization-Environment framework, we also analyze the determinants of the firm's technology adoption. Our main results are 1) ICT service, finance, and ICT manufacturing are early adopters of Industry 4.0 technologies; 2) while cloud and big data show relatively high adoption rates (4.52% and 4.36%), AI is used by only a small share of firms (2.74%); 3) firms with greater technological readiness and greater size are more likely to adopt Industry 4.0; and 4) environmental factors, such as spillovers, appear to have significant impacts on firms’ technology adoption. Our findings allow us to identify the characteristics of early adopters and consider the potential consequences of the uneven adoption of Industry 4.0.
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