LATAM and Spanish SME barriers to Industry 4.0

PurposeExisting studies are scarce, especially on the Industry 4.0 application to firms' innovation and competitiveness, and even more on the application to LATAM and Spanish SMEs. This paper tries to fill this gap by explaining the results of applying a systematic model, to understand which are the SMEs' strengths and weaknesses in relation to the Industry 4.0 transformation.Design/methodology/approachA systematic methodology involving documentation analysis, visits to the companies, interviews with employees and managers, making a preliminary diagnosis, crossing their needs with the enablers that can apply. The fieldwork was carried out during a two month period (2019), on a target sample of 22 SMEs operating under industrial productive activity already exporting or planning their internationalization toward LATAM regions.FindingsThere are relevant barriers that need to be overcome in order to enter Industry 4.0 and, in this specific analysis, the following major classification was obtained: (1) Technological barrier, (2) Training barrier, (3) Economic barrier and (4) Contextual barrier.Originality/valueThis paper provides new insights and sets a starting point regarding LATAM and Spanish’ Industry 4.0 situation, while contributing to the SMEs competitiveness by providing deeper understanding of the barriers and limitations in adopting Industry 4.0, pointing out some implications and suggestions for organizations to implement.