Industry 4.0 in manufacturing SMEs of Argentina and Brazil

Abstract

ABSTRACT The level of diffusion of the new technologies involved in the so-called Industry 4.0 (I4.0) is still incipient in Latin America. This article compares the empirical studies carried out on selected samples of small and medium-sized enterprises (SMEs) in Argentina and Brazil, focusing the analysis on the experiences of adoption of I4.0 technologies on the motivations and benefits of adopting these new technologies. The I4.0 presents two dimensions; on the one hand, the top-down policy in which governments encourage the productive system to adopt the drivers of this technological revolution and, on the other, the business dimension driven by the large transnational corporations and the network of participants in their value chain. This article finds that the main motivations of analyzed SMEs with the introduction of these new technologies is linked to the need to find solutions, in terms of improving efficiency in processes, higher quality of products, and services to customers and suppliers. Additionally, the change that digitalization entails poses a qualitative leap for SMEs that forces them to rethink their operation; the interconnection and dynamic updating of the skills of their human resources is essential. The research findings highlight different obstacles, such as lack of knowledge about these new technologies; the unavailability of infrastructure and necessary internal connectivity; the qualified human resources shortage; the culture, organizational habits, and resistance to change; the difficulties in accessing financing, and size of investment; and education and training system deficiencies, among others.