Barriers to Industry 4.0 Implementation in Indian Manufacturing SMEs Using Integrated AHP-VIKOR Framework

Abstract

This study explores the barriers that Indian Small and Medium Enterprises (SMEs) encounter when implementing Industry 4.0 technologies. Industry 4.0, marked by cyber-physical systems, data analytics, and automation, offers significant potential for enhancing efficiency and productivity. Despite this, Indian SMEs face substantial challenges in implementing these technologies. The research utilizes a combined Multi-Criteria Decision Making (MCDM) approach, integrating the Analytic Hierarchy Process (AHP) and VIKOR methods. AHP helps prioritize various barriers based on expert opinions and their relative importance. After identifying and weighing the barriers, VIKOR is used to rank them. VIKOR evaluates the “closeness” to the ideal solution and the “maximum group utility distance” from other options. This integrated approach offers a comprehensive way to identify the most critical barriers and develop strategies to address them. The results of this study can aid in designing targeted interventions to overcome these challenges. By understanding the specific issues Indian SMEs face, policymakers, industry leaders, and technology providers can create a more favorable environment for adopting Industry 4.0. This, in turn, can help Indian SMEs harness the transformative power of this new industrial revolution.