Yes they can. But it will be challenging. My guess (based on our research and interaction with practice) is that some SMEs will flourish and "take the next step" based on industry 4.0 --- and others will fail and disappear.

The second group ("failure") comprises SMEs that either do not want to see the need for digitalization or that are too afraid. The first group ("winners") comprises SMEs that group together and that seek to benefit from industry 4.0 by step-by-step implementation. In my country (Germany), we have man initiatives that aim to help SMEs with industry 4.0. For instance, the "smartfactory" is a place where medium-sized firms can experiment with artificial intelligence and connectedness. The smart, open-minded SME owner-managers will find ways to a) get educated about the opportunities of industry 4.0, b) find funding (e.g., national or European grants), and c) implement the required changes in their firm.

They hardly can, if not supported by trade unions or supportive programmes in supply chains or (regional) governmental or EU programmes. Especially small firms will suffer for their ignorance or lack of renewal capabilities. Medium size firms will have a better chance to survive. I agree with Nadine Kammerlander observations.

I appreciate your answers very much. I agree with Lex Van Teeffelen, institutional support and capabilities are undoubtedly a key factor. Nadine Kammerlander, What is the name of the work about SMEs that is referenced in the comment? Thanks a lot.

I agree with the comments above, I just wanted to add that we found it decisive for SMEs what their role in Industry 4.0 is. SMEs as providers of Industry 4.0 technologies and/or services are rather proactive towards Industry 4.0. SMEs as users (the much larger group) of Industry 4.0 technologies (foremost in production) fear to become even more dependent, lack the neccessary capabilities and cannot benefit from the value added directly, but fear that prices will be dropped by their customers the same rate they gain efficiency.

This is, at least more or less, the German/European view. Another study we had with Chinese SMEs shows that they emphasize the benefits, as they see the chance to "leapfrog" from "Industry 2.0" to "Industry 4.0". In short, I would say that the characteristics and role of SMEs must be kept in mind towards Industry 4.0 when trying to support them. There might be niches for SMEs where production is rather traditional, but the products are still competetive in the future.

For further reading, please see below the articles referred to:

Article Sustainable Industrial Value Creation in SMEs: A Comparison ...

Article Business model innovation in small-and medium-sized enterpri...

Article Fortune favors the prepared: How SMEs approach business mode...

Julian M. Müller: Thank you very much for your comments and bibliographical references. Good day.

follow www.beyond4-0.eu

This project is about consequences of digital trabnsformation and will study six European 'eco -systems', inclusing SMEs.

Peter

Good day

Refer the following:

https://www.emerald.com/insight/content/doi/10.1108/BIJ-09-2018-0281/full/html