• Abstract

    Small and medium-sized businesses are embarking on an ambitious journey of adopting advanced manufacturing technologies due to increased competition and the desire to remain competitive (AMTs). Global competition is measured in terms of improved quality, lower costs, value for money items, quick service, and variety, all supplied concurrently. Due to resource constraints, implementing advanced manufacturing technology has become a lengthy and complex process for small and medium-sized businesses. As the success or failure of a technology is determined by the implementation methods rather than the technology itself, it is worthwhile to study the practices used by small and medium enterprises while implementing advanced manufacturing technologies. A structured questionnaire was administered to 300 Indian SMEs out of which 126 valid responses were obtained. The data obtained was empirically analysed with SPSS 20.0 to explore the following: AMT enablers, current level of AMT assimilation in SMEs, assimilation pattern differences and key factors for improving AMT implementation effectiveness. Findings of this study shows that there is a very strong correlation (0.896) between two direct advanced manufacturing technologies – Flexible Manufacturing Systems and Computer Integrated Manufacturing. Other significant correlation (0.704) is observed between Robotics and Automated Storage/Retrieval Systems. Also, amongst indirect AMTs our results establish a strong correlation (0.814) between Material Requirement Planning and Computer Aided Design. The result of the hypotheses testing indicates that 43.1 % of the performance of the SMEs is explained by AMTs. The findings of this study will help SMEs in the effective assimilation of AMTs.

  • References

    1. Awwad AS, Khattab AAAl, Anchor JR, Awwad AS, Khattab AAAl, Anchor JR (2013) Competitive Priorities and Competitive Advantage in Jordanian Manufacturing. Journal of Service Science and Management 6:69–79. DOI: 10.4236/JSSM.2013.61008
    2. Beaumont N, Schroder R, Sohal A (2002) Do foreign-owned firms manage advanced manufacturing technology better? International Journal of Operations and Production Management 22:759–771. DOI: 10.1108/01443570210433535/FULL/XML
    3. Bellantuono N, Nuzzi A, Pontrandolfo P, Scozzi B (2021) Digital Transformation Models for the I4.0 Transition: Lessons from the Change Management Literature. Sustainability 13:12941. DOI: 10.3390/SU132312941
    4. Bhalla N, Kaur I, Sharma RK (2022) Examining the Effect of Tax Reform Determinants, Firms’ Characteristics and Demographic Factors on the Financial Performance of Small and Micro Enterprises. Sustainability 14:8270. DOI: 10.3390/SU14148270
    5. Bhise DV, Choudhari SA, Kumbhalkar MA, Sardeshmukh MM (2023) Modelling the critical success factors for advanced manufacturing technology implementation in small and medium sized enterprises. 3C Empresa 50:2254–3376. DOI: 10.17993/3cemp.2022.110250.263-275
    6. Bhise DV, Sunnapwar VK (2019) Developing Framework for the Implementation of Advanced Manufacturing Technologies in Small and Medium-Sized Enterprises. International Journal of Applied Management and Technology 18:88–110. DOI: 10.5590/IJAMT.2018.18.1.07
    7. Cardoso RDR, Pinheiro De Lima E, Gouvea Da Costa SE (2012) Identifying organizational requirements for the implementation of Advanced Manufacturing Technologies (AMT). Journal of Manufacturing Systems 31:367–378. DOI: 10.1016/J.JMSY.2012.04.003
    8. Cheng Y, Matthiesen R, Farooq S, Johansen J, Hu H, Ma L (2018) The evolution of investment patterns on advanced manufacturing technology (AMT) in manufacturing operations: A longitudinal analysis. International Journal of Production Economics 203:239–253. DOI: 10.1016/J.IJPE.2018.06.019
    9. Dangayach GS, Deshmukh SG (2005) Advanced manufacturing technology implementation: Evidence from Indian small and medium enterprises (SMEs). Journal of Manufacturing Technology Management 16:483–496. DOI: 10.1108/17410380510600473/FULL/XML
    10. Dubey R, Gunasekaran A, Papadopoulos T, Childe SJ, Shibin KT, Wamba SF (2017) Sustainable supply chain management: framework and further research directions. Journal of Cleaner Production 142:1119–1130. DOI: 10.1016/J.JCLEPRO.2016.03.117
    11. Faisal MH (2013) Advanced Manufacturing Technology Implementation on Industries. International Journal of Engineering Research and Technology 2:80–90.
    12. Goyal S, Grover S (2012) Advanced manufacturing technology effectiveness: A review of literature and some issues. Frontiers of Mechanical Engineering 7:256–267. DOI: 10.1007/S11465-012-0330-7/METRICS
    13. Idris B, Abdullahi YA, Sookram S, Vrontis D, Chaudhuri R, Chatterjee S (2022) Adoption of Digital Technologies by SMEs for Sustainability and Value Creation: Moderating Role of Entrepreneurial Orientation. Sustainability 14:7949. DOI: 10.3390/SU14137949
    14. Islam MZ, Jasimuddin SM, Hasan I (2015) Organizational culture, structure, technology infrastructure and knowledge sharing: Empirical evidence from MNCs based in malaysia. VINE 45:67–88. DOI: 10.1108/VINE-05-2014-0037/FULL/XML
    15. Ko M, Kim C, Lee S, Cho Y (2020) An Assessment of Smart Factories in Korea: An Exploratory Empirical Investigation. Applied Sciences 10:7486. DOI: 10.3390/APP10217486
    16. Lin FJ, Chen JM (2012) A simulation model with synchronization manufacturing stations. Management Decision 50:1308–1325. DOI: 10.1108/00251741211247021/FULL/XML
    17. Marjudi S, Sulaiman R, Mohamad Amran MF, Kahar S, Abdullah KA (2011) The development of CAD system for SME food packaging in Malaysia: A proposal. Proceedings of the 2011 International Conference on Electrical Engineering and Informatics, ICEEI 2011. DOI: 10.1109/ICEEI.2011.6021509
    18. Nunnally J (1978) Psychometric Methods. 2nd Edition, McGraw-Hill, New York.
    19. Oppong JA, Biney-Aidoo V, Antiaye E (2013) Evaluating the Benefits of Computer Aided-Design (CAD) in Fashion Education, the Case of Accra Polytechnic. Journal of Education and Practice 4:73-80.
    20. Ordoobadi SM (2013) Application of AHP and Taguchi loss functions in evaluation of advanced manufacturing technologies. International Journal of Advanced Manufacturing Technology 67:2593–2605. DOI: 10.1007/S00170-012-4676-0/METRICS
    21. Palčič I, Prester J (2020) Impact of Advanced Manufacturing Technologies on Green Innovation. Sustainability 12:3499. DOI: 10.3390/SU12083499
    22. Prause M (2019) Challenges of Industry 4.0 Technology Adoption for SMEs: The Case of Japan. Sustainability 11:5807. DOI: 10.3390/SU11205807
    23. Radhakrishna P, Subramanyan S, Raju V (2008) CAD / CAM / CIM. New Age International (P) Ltd., Publishers.
    24. Rahardjo J, Yahya S Bin (2010) Advanced Manufacturing Technology Implementation Process in SME: Critical Success Factors. Jurnal Teknik Industri 12:101–108.
    25. Sagar P B, Nagare MR, Rnagare M (2020) Integration of CAD and CAE in SME’s for Product Development. International Journal of Instrumentation Control and Automation 1:1. DOI: 10.47893/IJICA.2012.1040
    26. Saliba MA, Zammit D, Azzopardi S (2017) A study on the use of advanced manufacturing technologies by manufacturing firms in a small, geographically isolated, developed economy: the case of Malta. International Journal of Advanced Manufacturing Technology 89:3691–3707. DOI: 10.1007/S00170-016-9294-9/METRICS
    27. Sethi APS, Khamba JS, Sushil, Kiran R (2010) Technological capability building in Indian manufacturing industry: an empirical study on the role of technology adoption and adaptation process. International Journal of Services and Operations Management 7:252–274.
    28. Simoes AC, Barros AC, Soares AL (2018) Conceptual framework for the identification of influential contexts of the adoption decision. Proceedings - IEEE 16th International Conference on Industrial Informatics, INDIN 2018:1059–1064. DOI: 10.1109/INDIN.2018.8471963
    29. Singh Rajesh K, Garg SK, Deshmukh SG (2008) Strategy development by SMEs for competitiveness: A review. Benchmarking: An International Journal 15:525–547. DOI: 10.1108/14635770810903132/FULL/XML
    30. Singh Rajesh Kumar, Gurtu A (2022) Embracing advanced manufacturing technologies for performance improvement: an empirical study. Benchmarking 29:1979–1998. DOI: 10.1108/BIJ-02-2021-0110/FULL/XML
    31. Sukathong S, Suksawang P, Naenna T (2021) Analyzing the importance of critical success factors for the adoption of advanced manufacturing technologies. International Journal of Engineering Business Management 13:1-16. DOI: 10.1177/18479790211055057
    32. Taber K S (2018) The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Research in Science Education 48:1273–1296. DOI: 10.1007/S11165-016-9602-2
    33. Thomas AJ, Barton RA (2011) Characterizing SME migration towards advanced manufacturing technologies 226:745–756. DOI: 10.1177/0954405411424977
    34. Uwizeyemungu S, Poba-Nzaou P, St-Pierre J (2015) Assimilation Patterns in the Use of Advanced Manufacturing Technologies in SMES: Exploring their Effects on Product Innovation Performance. Journal of Information Systems and Technology Management 12:271–288. DOI: 10.4301/S1807-17752015000200005

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Copyright (c) 2023 Multidisciplinary Science Journal

How to cite

Bhise, D. V., Choudhari, S. A., Kumbhalkar, M., & Sardeshmukh, M. M. S. (2023). Assimilation of advanced manufacturing technologies in small and medium sized enterprises: an empirical analysis. Multidisciplinary Science Journal, 5(4), 2023041. https://doi.org/10.31893/multiscience.2023041
  • Article viewed - 94
  • PDF downloaded - 70