The role of digital governance in the integration of performance measurement systems uses and Industry 4.0 maturity

This study aims to investigate the effect of different types of performance measurement systems (PMSs) use (diagnostic use and interactive use) on Industry 4.0 maturity, examining whether there is a need for digital governance to facilitate the relationship between different types of PMS use (diagnostic use and interactive use) and Industry 4.0 maturity. Although the use of PMSs has been identified as beneficial in the Industry 4.0 context, relatively little research exists on the digital governance that enables firms to lead and control digital processes. The paper posits that digital governance plays an important role in mediating the relationship between PMS use and Industry 4.0 maturity. The data were gathered from 280 small- and medium-sized enterprises (SMEs), which operate in the service and manufacturing industry in Finland. The results demonstrate that different types of PMSs use cannot provide Industry 4.0 maturity alone, so there is a need for digital governance to fuel different types of PMS use, hence leading to Industry 4.0 maturity. However, diagnostic use of PMSs significantly hinders digital governance, while the interactive use of PMSs significantly drives digital governance. Finally, digital governance facilitates Industry 4.0 maturity.