The relevance of Industry 4.0 and its relationship with moving manufacturing out, back and staying at home

In view of the fact that Industry 4.0 is becoming increasingly essential, the implementation of Industry 4.0 technologies is believed to be an essential strategic component in further increasing the efficiency of manufacturing processes and in determining decisions concerning globalisation strategies. Thus, this paper provides an empirical analysis of the essential constructs of Industry 4.0, and drivers and barriers for Industry 4.0. The paper is based on 270 valid answers to a questionnaire-survey distributed among Danish manufacturers. Regression analyses were used to test the proposed hypotheses. The results of the analyses reveal that the identified drivers and barriers for Industry 4.0 have a positive impact on the perceived relevance of Industry 4.0 among companies. Furthermore, the analyses show that the perceived relevance of Industry 4.0 among companies has a positive impact on companies that have moved manufacturing back and on companies that have moved manufacturing out and back. Conversely, the perceived relevance of Industry 4.0 among companies has a negative impact on companies that have remained domestic. The perceived relevance of Industry 4.0 has no impact on companies that have moved manufacturing out. This research, in general, offers to both researchers and practitioners an increased consciousness concerning the relevant drivers and barriers for Industry 4.0 in decision processes about where to locate manufacturing.