A Resource-Based View and Institutional Theorybased analysis of Industry 4.0 Implementation in the Indian Engineering Industry

Abstract

Industry 4.0 is the digital transformation of the organization to meet the organizational goals and objectives. Industry 4.0 is making slow inroads in the Indian Engineering Industry. Therefore, there is a need for a study to understand the dynamics of the implementation in Indian Engineering Industry from a theoretical point of view. This study uses the Institutional Theory and ResourceBased theory to analyse the implementation of Industry 4.0. "Coercive", "normative" and "mimetic" pressure is used to analyse the forces on firms to implement Industry 4.0. Resource-based view is further used to analyse how the "physical, human, organizational, technological, financial and reputational capital" can be used in Indian Engineering Industry to attain competitive advantage. The study also develops a model to understand the dynamics of Industry 4.0 implementation. This is the first study to analyse the dynamics of Industry 4.0 implementation in Indian Engineering Industry. It will help the academicians to enrich the theoretical base of Industry 4.0 implementation. The industry will benefit from this analysis to understand the decision-making process for the implementation of Industry 4.0. The study can be used by the Government to decide policies that formal, informal rules and policies will help the Industries to implement Industry 4.0.