Grey Theory-Based Ranking Framework towards Successful Industry 4.0 Implementation

The adoption of Industry 4.0 (I4.0) has predominantly been observed in large companies, leaving small and medium-sized enterprises (SMEs) facing significant challenges in managing their business processes during implementation. Despite its transformative potential, SMEs struggle to identify and prioritize effective strategies for integrating I4.0 into their operations. Addressing this gap, this study investigates key solutions to facilitate successful I4.0 implementation for sustainable development in SMEs. The primary aim of this research is to identify and rank sustainable solutions that can support SMEs in overcoming barriers to I4.0 adoption. By providing actionable insights, the study seeks to assist SMEs in navigating their digital transformation journey effectively. The research employs a mixed-method, two-phase framework. In Phase I, a comprehensive literature review is conducted to explore various solutions for I4.0 implementation tailored to the needs of SMEs. Phase II employs Grey Relational Analysis (GRA) to systematically rank the identified solutions based on their relevance and effectiveness. The study identifies and evaluates 14 solutions for I4.0 implementation in SMEs. Using GRA, the top-ranked solutions are determined to be: “strategic collaborations with internal and external partners” (grey relational degree: 0.9549), “coordination among key stakeholders” (GRD: 0.9486), and “launching skill/training programs” (GRD: 0.9468). The novelty of this research lies in its mixed-method approach, combining qualitative and quantitative analyses to provide a robust framework. The findings offer practical implications for SMEs aiming to achieve sustainable development through I4.0 adoption.