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The implementation of Industry 4.0 concept brings many risks mainly for small and medium-sized enterprises (SMEs). The objective of the study is a diagnosis and comparison of the perception of selected risk issues connected with Industry 4.0 implementation in Slovak and Polish SMEs, which have knowledge or experience with cluster cooperation. This...
Contexts in source publication
Context 1
... solutions represent bare infrastructure and smart solutions for the interaction between physical systems and humans, reflection of physical objects in the information world. Transaction in terms of software services, interoperation that is enabled by interacting, cloud-based platforms, prescription to handle big data with the goal of retrieving new and unexpected information and communication using the concepts and solutions coming from the network architecture (Neugebauer et al., 2016). The perception of this kind of risks among respondents is at low level. ...
Context 2
... score confirmed statistical significance of differences except for the perception at middle level. Figure 1 presents the overall evaluation of the selected risks perception by Polish and Slovak SMEs. As we can see, SMEs generally perceived the risks at low (Polish SMEs) and middle values (Slovak SMEs). ...
Citations
... Previous study claimed that 89% of SMEs are in the exploration stage of digital transformation, 8% of SMEs are in the practice stage of digital transformation, and only 3% of SMEs are in the deep applied stage of digital transformation [42]. This is mainly because the technical complexity arises in adjusting existing ERP systems to be compatible with the advanced technology and to achieve a high level of automation [45][46] [47]. The combination of complexity of technologies, cyber-space and outsourcing in many business activities may increase hazard problems and lead to failure in operation [48]. ...
... Research mainly pointed out potential risks for SMEs in digital transformation from organizational perspectives. SMEs are facing innovation risks with the adoption of digital technology [45], and they have to assess their dynamic digital innovation capabilities in order to mitigate perceived risks and realize successful business model innovation [53]. Meanwhile, the lack of digital skills and talents, as well as digital culture could risk SMEs' competitiveness if they fail to embrace digitalization [54]. ...
Small and medium enterprises (SMEs) are acknowledged as key drivers to economic growth and social development worldwide. Digitalization brings opportunities as well as challenges to SMEs. Therefore, it is of great significant for SMEs to identify, assess and manage potential risks in digitalization. This study aimed to provide a systematic literature review (SLR) of available research evidence on risk management in SMEs under the digital transformation. Through SLR, a search on Web of Science (WOS) as well as Scopus resulted in the acceptance of 67 peer-reviewed papers published from 2017 to 2023. The results showed that SMEs are mainly concerned with covid-19 crises and supply chain risks, technological and security risks and organizational risks. By adopting various methods to testify risks, management strategies such as strengthening organizational learning, technological and resilient capabilities, implementing cybersecurity governance and IR compliance, adopting safety management tools, participating public support and initiating educational training courses are suggested for SMEs to achieve a successful digital transformation. This research may help researchers as well as practitioners deepen their knowledge in SMEs risk management under digitalization.
... They may even transfer responsibility over their own operations to the provider, increasing the provider's risk profile (Snieška et al., 2020;Ziaee Bigdeli et al., 2018). In Case A, customers expected ventilation systems to be updated to also monitor air quality (to prevent the spread of COVID-19 (Bustinza, Gomes, et al., 2019;Kohtamäki, Parida, et al., 2019). ...
Purpose
This study aims to develop theory on the process toward digital service innovation (DSI) and to generate insights into how companies deal with the rising complexity associated with DSI, both inside and outside of the organization, through organizational learning and alignment.
Design/methodology/approach
After purposeful sampling, in-depth, longitudinal case studies of three manufacturers are presented as illustration. Per case, multiple semi-structured interviews are conducted, and insights are validated through rich additional data gathering. Each company's DSI pathway is reconstructed with critical incident technique. Next, using systematic combining, a middle-range theory is developed by proposing a theoretical frame concerning the relations between DSI maturity, learning and alignment.
Findings
The authors posit that, as companies gradually develop and progress toward DSI maturity, they deal with a rising degree of complexity, fueling their learning needs. Companies that are apt to learn, pass through multiple cycles of learning and alignment to overcome specific complexities associated with different DSI stages, with each cycle unlocking new DSI opportunities and challenges.
Originality/value
The study applies a stage-based view on DSI combined with complexity management and organizational learning and alignment theory. It offers a theoretical frame and propositions to be used by researchers for future DSI studies and by managers to evaluate alternative DSI strategies and implementation steps.
... Companies around the world spend a lot of time, money and energy developing new technologies, while Industry 4.0 enables production lines, processes and teams to work together regardless of location, time zone and any other aspect (Javaid et al., 2022). In Slovakia, most companies are familiar with the issues of Industry 4.0 (Grenčíková et al., 2020;Snieška et al.,2020), or deal with it, companies analyse the possibilities of implementing smart industry elements into their processes or, to a greater or lesser extent, directly implement them (Grenčíková et al., 2020). As the automotive sector is one of the key pillars of the Slovak economy (Sütőová et al., 2020), this sector is the most affected by the Industry 4.0 concept. ...
In an effort to reduce operating costs and to increase the quality and efficiency of production, production organizations in the automotive sector are trying to implement the Industry 4.0 concept, which has become a phenomenon of the last two decades. These initiatives have a significant impact on the employees in production organizations, especially in automotive sector. The main aim of the presented study is to expertly assess the importance of general competencies for transforming job positions in the automotive industry in Slovakia. The starting point of the presented study were the results of research focused on emerging positions in the automotive industry and the competencies required by employers in Slovakia. Based on the expert assessment, the hierarchical structure of the solved problem was created and the importance of competencies for analysed job positions was assessed by applying the Analytical Hierarchical Process (AHP) method. The results pointed to the growing importance of non-technical competencies. Analyses have shown that actually the most important work competencies are: basic literacy, professional knowledge, problem solving, digital skills and analytical thinking. The development of the necessary competencies will be important both, from the point of view of employers, but also of employees working in professions that are in decline, become endangered and need to be transformed into the required professions.
... Firms in different markets and countries have different perceptions. For example, Slovak SMEs are more aware of the Industry 4.0 implementation than Polish SMEs (Snieška et al., 2020). Globalization has created opportunities for smaller companies to form alliances with other small companies, allowing them to gain access to skills from different countries and develop synergies to achieve competitive benefits. ...
This study examined supply chain management (SCM) for small and medium- sized enterprises (SMEs) in China. It first described the characteristics of the supply chain and its changes, challenges, and competition in both domestic and global markets for China’s SMEs. The study used the qualitative survey research method to interview twenty individuals working in China’s SMEs among diverse industries. The results indicated that (a) China’s SMEs had struggled with the cost and suitability when using information systems in supply chain management, (b) China’s SMEs had not found an effective measure to avoid or reduce supply chain risks, and (c) China’s SMEs cautiously welcomed globalization but also pointed out globalization brought uncertainty and challenges.
... Effective risk management is a key element of any successful management strategy. Risk management is a systematic process that helps organizations understand the nature of risk and the appropriate ways to assess and control it [11]. Undoubtedly, the biggest obstacle in effective risk management is the fact that it applies to future events that cannot be predicted by default. ...
... risk analysis (33, 9.1%), risk assessment (28,7.7%), and creating measures to reduce (42,11.6%) and monitor risks (35,9.7%). ...
This article aims to determine the disparities between SMEs in management and risk management depending on the type of management, age, and size of SMEs in the business environment of Slovakia. The case study was conducted in 2019/2020 on a sample of 362 owners and top managers of SMEs. The hypotheses were verified using statistical methods—the Pearson chi-squared test and the Z-test. The results show that SMEs are more involved in risk management than microenterprises. Process-driven SMEs largely perceive market risk. Medium-sized enterprises perceive personnel risk more intensely than microenterprises and small enterprises. Not even one out of every five owners or top managers can manage risks, and more than 15% of SMEs do not conduct any risk management activities. Financial reserves and insurance are the most used risk reduction measures in SMEs. The purpose of the survey is to strengthen the resilience of SMEs and to find out the causes of the weakening of resilience concerning the investigated risk factors. The creation of integrated management systems presupposes the inclusion of the risk management system among other management systems. By implementing risk management, it is possible to increase the efficiency of management systems.
... SMEs in emerging economies have significantly more limitations in accessing capital and technology and rely more on manual processes (Coad and Tamvada, 2012). Without adequate integration with the broader industrial context that is adopting I4.0, SMEs may face compelling challenges in survival, particularly in an environment marked by uncertainty (Sommer, 2015;Kamble et al., 2018;Dutta et al., 2020;Raj et al., 2020;Snieška et al., 2020). There is an imminent need for SME leaders to prepare for the coming digital era to prevent intellectual property loss, sabotage of manufacturing, and damages arising from downtime (Dutta et al., 2020;Raj et al., 2020). ...
... Most of the challenges in operations can be attributed to the costs, complexity, lack of skills, and technical expertise required for I4.0 implementation (Birkel et al., 2019). In light of the rapid development of digital adoption and transformation, numerous organisations struggle to find and equip their talent with the appropriate skills and knowledge (Piccarozzi et al., 2018;Stock et al., 2018;Snieška et al., 2020). Moreover, the management of conventional businesses and the introduction of digital innovations concurrently require added managerial skills and substantial staff support (Matt et al., 2016;Birkel et al., 2019;Moeuf et al., 2020;Snieška et al., 2020;Appio et al., 2021). ...
... In light of the rapid development of digital adoption and transformation, numerous organisations struggle to find and equip their talent with the appropriate skills and knowledge (Piccarozzi et al., 2018;Stock et al., 2018;Snieška et al., 2020). Moreover, the management of conventional businesses and the introduction of digital innovations concurrently require added managerial skills and substantial staff support (Matt et al., 2016;Birkel et al., 2019;Moeuf et al., 2020;Snieška et al., 2020;Appio et al., 2021). In most enterprises, connecting all the machines and employees on a factory floor is difficult due to a lack of infrastructure and skilled personnel (Moeuf et al., 2020;Snieška et al., 2020). ...
Manufacturing organisations worldwide are embracing Industry 4.0 (I4.0) and its associated technologies, such as the Internet of Things (IoT), Advanced Robotics, Big Data, and Cybersecurity. However, its implementation poses considerable risks for SMEs in emerging economies. Based on a survey of industry experts and business leaders associated with implementing I4.0 in the dynamically evolving economy of India, this paper identifies and prioritises the critical risks linked with implementing I4.0 in SMEs. Empirical results using the Fuzzy-Analytical Hierarchy Process suggest a hierarchy of risks associated with SMEs' transition to I4.0, with financial and technological risks posing the most significant barriers to I4.0 adoption. The novel results presented here can enable strategy development to effectively manage the risks of implementing new technologies in emerging economy contexts.
... Depending on the possessed organizational skills, various activities, including KI, moderate the innovation of products and processes determining enterprise innovativeness (Teece, 2018). Effective organization management depends on innovative activities undertaken, but also on the adopted operation strategy and the possibility of taking risk (Snieska et al. 2020), hence, the company's readiness to deliberately accept risk while taking advantage of innovative opportunities. Therefore, the adopted organizational behavior of enterprises, no organizational rigidity, determine the method of processing and using knowledge in enterprises (Choo, 2013) and its innovation level (Chirico, & Salvato, 2008). ...
The functioning of modern organizations requires not only the constant collection of information and its analysis, but also adaptation to changing business requirements. Enterprise owners and managers must indicate which directions of development are important for business maintenance, its development or adaptation to changes in the environment. Achieving and maintaining a business competitive advantage depends on the implementation of innovation in individual entities, use of modern technologies, including advanced IT solutions and the construction of processes and knowledge resources focused on the market environment. Knowledge is perceived as the crucial source to gain a competitive advantage, and knowledge management becomes an important element of the entire process of managing an organization. KI or the ability to collect and process specific information resources of an organization is also crucial for business innovation. KI is difficult to achieve, however, it is the basis for competitive abilities of companies. The aim of the article is to identify the capability to integrate knowledge influencing the innovativeness of enterprises. The review of the current subject literature focuses on the analysis of capability in the knowledge integration based on international experience. The article is based on the results of research conducted at the turn of 2021 and 2022 on a group of 355 enterprises operating in Central Europe, where the business innovation level is quite low. Therefore, an attempt was made to set recommendations for activities for knowledge integration for enterprises intending to increase innovation. The analysis of the practical knowledge integration capability is based on statistical analyses allowing for indicating the correlation and dependence between the studied variables. The empirical research using the proposed research tool was the basis for building a knowledge integration model in terms of enterprise innovation. The analysis showed that selected knowledge integration capability positively correlates with the level of enterprise innovativeness.
... As its theoretical contribution, this study expands the literature on the risk factors of enterprises' cross-boundary innovation. Specifically, instead of the results of cross-boundary innovation, this study focuses on its risk factors (Snieška et al., 2020), which may lead to desired results. ...
This study attempts to identify and evaluate the key elements associated with triggering and facilitating the cross‐boundary innovation of manufacturing enterprises. For this purpose, we used discourse analysis to construct a research framework of cross‐boundary innovation risks based on the in‐depth interview and semi‐structured questionnaire responses of the senior executives of 15 manufacturing enterprises in the central provinces of China. Results identify five main categories of cross‐boundary innovation risks, namely, cross‐boundary characteristics, cross‐boundary innovation process, subject intention, subject capability, and subject relationships. These categories are further refined into subcategories to theorize their interconnections, which guide the researchers in formulating strategies for reducing risks from cross‐boundary innovation. This study also proposes some strategies for controlling cross‐boundary innovation risks based on the case study findings and proposes an interesting viewpoint that adds to its theoretical and managerial implications. Specifically, this study identifies risk identification as the foundation of risk control and management for cross‐boundary innovation. The outcomes of this research not only introduce opportunities for future researchers to examine our propositions based on grounded theory but may also help practitioners in identifying the critical elements of cross‐boundary innovation.
... The main competitor of artificial intelligence is blockchain technology, which gradually gains application in various spheres of life and modern information security systems (Kibaroğlu, 2020). Although such technologies may have a downside, especially in decision-making (Lopez et al., 2019), the risks of implementing Industry 4.0 should be considered (Snieška et al., 2020). The risks related to distortion, loss of information and knowledge, which is relevant for any economic entity and its various areas Nitsenko et al., 2019), should also be considered. ...
The article uses the Sedov-Taylor function to model "information bubbles" formed in the global information space due to information attacks. The authors identify the most relevant determinants that describe information activities related to cyber threats and reactions of economic agents in the global digital economic space. The article hypothesizes about the emergence of "information bubbles" due to increases in information activities and their rupture due to information intrusion, leading to appropriate reactions of economic agents and their subsequent stabilization over time. The empirical data from global web statistics indicates, that four large-scale information overloads were caused by cyberattacks during the study period, which led to the rupture of "information bubbles". Application of autocorrelation functions allows us to determine that the period during which misinformation spreads is, on average, seven days. Solution of the Sedov-Taylor optimization problem and calculations of differential equations, as well as their derivatives, suggest several indicators. Namely, a breakpoint of the second kind, corresponds to the rupture of the "information bubble" with a subsequent adaptation of the system; the inflection point of the function identifies the levels of information activities related to cyber threats, which will change the consequences of the "information bubble" rupture; the minimum possible level of the reactions of economic agents in the global digital economic space.
... overty and food waste in the individual countries of the EU in 2012. Source: created by authors according to[61][62][63][64][65]. ...
... Poverty and food waste in the individual countries of the EU in 2012. Source: created by authors according to data from[61][62][63][64][65]. ...
Globally, millions of people suffer from poverty. This paper discusses the problem of poverty especially in relation to food waste. The prevention of food waste can also contribute to global poverty reduction, and the reduction of food waste is a tool for sustainable growth and competitiveness. At present, the number of people at risk of poverty and the amount of food waste are increasing at unsustainable rates. An integrated and efficient tool for the management of food, energy, and water (FEW) resources to improve FEW security via an interdisciplinary approach could help address several of the most significant global challenges, such as climate change, and economic, environmental, and social security. The aim of this study was to examine the relationship between the existence of poverty and the treatment of food for sustainable growth. The analysis focused on the EU countries and the main data source was the Eurostat database. Households generally create the largest proportion of food waste. Pareto analysis shows that in households, food and non-alcoholic beverages are among the first group of expenses, and in the EU countries they represent approximately 12% of the total expenses. Food and non-alcoholic beverages are a stable, unavoidable, and non-negligible element of total expenses. Paradoxically, enormous amounts of food are wasted. A relatively weak inversely proportional relationship between the amount of food waste per capita and the proportion of the population at risk of poverty among the total population of EU countries was identified through correlational analysis. A very weak relationship between the share of the population at risk of poverty in the total population and the amount of food waste per capita, excluding the population at risk of poverty, was also found.
