The Impact of Industry 4.0 Implementation on Organizational Behavior and Corporate Culture: The Case of Pakistan’s Retail Industry

Full Text (PDF, 265KB), PP.20-31

Views: 0 Downloads: 0

Author(s)

Shahbaz Ali 1,* Yongping Xie 1

1. School of Economics and Management, Xidian University, Xi’an, Shaanxi, China

* Corresponding author.

DOI: https://doi.org/10.5815/ijem.2020.06.03

Received: 16 Oct. 2020 / Revised: 3 Nov. 2020 / Accepted: 25 Nov. 2020 / Published: 8 Dec. 2020

Index Terms

Industry 4.0, Organizational Behavior, Corporate Culture, Organizational Effectiveness, Pakistan’s Retail Industry

Abstract

This paper measured the impact of the implementation of the five core Industry 4.0 technologies (artificial intelligence, big data analytics, cloud computing, cybersecurity, and Internet of Things (IoT)) on organizational behavior and corporate culture of businesses and organizations in Pakistan. Moreover, the influence of organizational behavior and corporate culture on organizational effectiveness was also analyzed in this paper. The retail industry of Pakistan was chosen as the subject of this study, and a quantitative approach, which included a questionnaire based on a five-point Likert scale ranging from “strongly agree” to “strongly disagree,” was employed to gather the responses from participants, including both superiors and subordinates possessing the technological know-how of Industry 4.0. The findings indicated that the implementation of Industry 4.0 in Pakistan’s retail sector helps positively transform organizational behavior and aids in building a great corporate culture. Moreover, it was found that both positive organizational behavior and great corporate culture help in improving the overall organizational effectiveness. This study took an unprecedented step to research Industry 4.0 from an organizational perspective. Furthermore, the carried-out study extended the theoretical body of knowledge by studying and examining the five crucial factors of Industry 4.0 that contribute to the service sector, particularly the retail industry, of the big emerging markets (BEM) economies, including Pakistan.

Cite This Paper

Shahbaz Ali, Yongping Xie, " The Impact of Industry 4.0 Implementation on Organizational Behavior and Corporate Culture: The Case of Pakistan’s Retail Industry ", International Journal of Engineering and Manufacturing (IJEM), Vol.10, No.6, pp.20-31, 2020. DOI: 10.5815/ijem.2020.06.03

Reference

[1]P. N. Stearns, The industrial revolution in world history. Routledge, 2018.

[2]R. S. Cowan, “The “Industrial Revolution” in the home: household technology and social change in the twentieth century,” in The Routledge Companion to Modernity, Space and Gender, 1st ed., Routledge, 2018, pp. 81–97.

[3]Lele, “Industry 4.0,” in Disruptive Technologies for the Militaries and Security, Singapore: Springer, 2019, pp. 205–215.

[4]S. Vaidya, P. Ambad, and S. Bhosle, “Industry 4.0–a glimpse,” Procedia Manuf., vol. 20, pp. 233–238, 2018.

[5]V. Roblek, M. Meško, and A. Krapež, “A complex view of Industry 4.0,” Sage Open, vol. 6, no. 2, 2016.

[6]D. Ibarra, J. Ganzarain, and J. I. Igartua, “Business model innovation through Industry 4.0: A review,” Procedia Manuf., vol. 22, pp. 4–10, 2018.

[7]S. S. Kamble, A. Gunasekaran, and S. A. Gawankar, “Sustainable Industry 4.0 framework: A systematic literature review identifying the current trends and future perspectives,” Process Saf. Environ. Prot., vol. 117, pp. 408–425, 2018.

[8]Y. Liao, F. Deschamps, E. de F. R. Loures, and L. F. P. Ramos, “Past, present and future of Industry 4.0-a systematic literature review and research agenda proposal,” Int. J. Prod. Res., vol. 55, no. 12, pp. 3609–3629, 2017.

[9]E. Negri, L. Fumagalli, and M. Macchi, “A review of the roles of digital twin in cps-based production systems,” Procedia Manuf., vol. 11, pp. 939–948, 2017.

[10]C. Pereira and F. Romero, “A review of the meanings and the implications of the Industry 4.0 concept,” Procedia Manuf., vol. 13, pp. 1206–1214, 2017.

[11]M. Piccarozzi, B. Aquilani, and C. Gatti, “Industry 4.0 in management studies: A systematic literature review,” Sustainability, vol. 10, no. 10, p. 3821, 2018.

[12]L. S. Dalenogare, G. B. Benitez, N. F. Ayala, and A. G. Frank, “The expected contribution of Industry 4.0 technologies for industrial performance,” Int. J. Prod. Econ., vol. 204, pp. 383–394, 2018.

[13]M. Imran, W. U. Hameed, and A. U. Haque, “Influence of Industry 4.0 on the Production and Service Sectors in Pakistan: Evidence from Textile and Logistics Industries,” Soc. Sci., vol. 7, no. 12, p. 246, 2018.

[14]L. Li, “China’s manufacturing locus in 2025: With a comparison of ‘Made-in-China 2025’ and ‘Industry 4.0,’” Technol. Forecast. Soc. Change, vol. 135, pp. 66–74, 2018.

[15]J. M. Müller, D. Kiel, and K.-I. Voigt, “What drives the implementation of Industry 4.0? The role of opportunities and challenges in the context of sustainability,” Sustainability, vol. 10, no. 1, p. 247, 2017.

[16]J. Wan, J. Yang, Z. Wang, and Q. Hua, “Artificial intelligence for cloud-assisted smart factory,” IEEE Access, vol. 6, pp. 55419–55430, 2018.

[17]P. Zheng et al., “Smart manufacturing systems for Industry 4.0: Conceptual framework, scenarios, and future perspectives,” Front. Mech. Eng., vol. 13, no. 2, pp. 137–150, 2018.

[18]B. Li, B. Hou, W. Yu, X. Lu, and C. Yang, “Applications of artificial intelligence in intelligent manufacturing: a review,” Front. Inf. Technol. Electron. Eng., vol. 18, no. 1, pp. 86–96, 2017.

[19]V. Terziyan, S. Gryshko, and M. Golovianko, “Patented intelligence: Cloning human decision models for Industry 4.0,” J. Manuf. Syst., vol. 48, pp. 204–217, 2018.

[20]S. Suman, S. Z. Khan, S. K. Das, and S. K. Chand, “Slope stability analysis using artificial intelligence techniques,” Nat. Hazards, vol. 84, no. 2, pp. 727–748, 2016.

[21]S. Zhang, C. Liu, S. Su, Y. Han, and X. Li, “A feature extraction method for predictive maintenance with time‐lagged correlation–based curve‐registration model,” Int. J. Netw. Manag., vol. 28, no. 5, p. e2025, 2018.

[22]H. Yang, C. Baradat, S. Krut, and F. Pierrot, “An agile manufacturing system for large workspace applications,” Int. J. Adv. Manuf. Technol., vol. 85, no. 1–4, pp. 25–35, 2016.

[23]P. Alhama Blanco, F. Abu-Dakka, and M. Abderrahim, “Practical use of robot manipulators as intelligent manufacturing systems,” Sensors, vol. 18, no. 9, p. 2877, 2018.

[24]R. Dubey, A. Gunasekaran, S. J. Childe, S. F. Wamba, and T. Papadopoulos, “The impact of big data on world-class sustainable manufacturing,” Int. J. Adv. Manuf. Technol., vol. 84, no. 1–4, pp. 631–645, 2016. 

[25]G. Li, J. Tan, and S. S. Chaudhry, “Industry 4.0 and big data innovations,” Enterp. Inf. Syst., vol. 13, no. 2, pp. 145–147, 2018.

[26]J. Yan, Y. Meng, L. Lu, and L. Li, “Industrial big data in an Industry 4.0 environment: Challenges, schemes, and applications for predictive maintenance,” IEEE Access, vol. 5, pp. 23484–23491, 2017.

[27]J. Wan et al., “A manufacturing big data solution for active preventive maintenance,” IEEE Trans. Ind. Informatics, vol. 13, no. 4, pp. 2039–2047, 2017.

[28]J. Woo, S.-J. Shin, W. Seo, and P. Meilanitasari, “Developing a big data analytics platform for manufacturing systems: architecture, method, and implementation,” Int. J. Adv. Manuf. Technol., vol. 99, no. 9–12, pp. 2193–2217, 2018.

[29]D. Georgakopoulos, P. P. Jayaraman, M. Fazia, M. Villari, and R. Ranjan, “IoT and edge cloud computing roadmap for manufacturing,” IEEE Cloud Comput., vol. 4, pp. 66–73, 2016.

[30]M. Aazam, S. Zeadally, and K. A. Harras, “Deploying fog computing in industrial IoT and Industry 4.0,” IEEE Trans. Ind. Informatics, vol. 14, no. 10, pp. 4674–4682, 2018.

[31]J. He, G. Jia, G. Han, H. Wang, and X. Yang, “Locality-aware replacement algorithm in flash memory to optimize cloud computing for smart factory of Industry 4.0,” IEEE Access, vol. 5, pp. 16252–16262, 2017.

[32]K.-B. Ooi, V.-H. Lee, G. W.-H. Tan, T.-S. Hew, and J.-J. Hew, “Cloud computing in manufacturing: The next industrial revolution in Malaysia?,” Expert Syst. Appl., vol. 93, pp. 376–394, 2018.

[33]M. Lezzi, M. Lazoi, and A. Corallo, “Cybersecurity for Industry 4.0 in the current literature: A reference framework,” Comput. Ind., vol. 103, pp. 97–110, 2018.

[34]T. M. Fernández-Caramés and P. Fraga-Lamas, “A Review on the Application of Blockchain to the Next Generation of Cybersecure Industry 4.0 Smart Factories,” IEEE Access, vol. 7, pp. 45201–45218, 2019.

[35]P. Fraga-Lamas and T. M. Fernández-Caramés, “A review on blockchain technologies for an advanced and cyber-resilient automotive industry,” IEEE Access, vol. 7, pp. 17578–17598, 2019.

[36]L. Da Xu, E. L. Xu, and L. Li, “Industry 4.0: state of the art and future trends,” Int. J. Prod. Res., vol. 56, no. 8, pp. 2941–2962, 2018.

[37]J. Trappey, C. V. Trappey, C.-Y. Fan, A. P. Hsu, X.-K. Li, and I. J. Lee, “IoT patent roadmap for smart logistic service provision in the context of Industry 4.0,” J. Chinese Inst. Eng., vol. 40, no. 7, pp. 593–602, 2017.

[38]J. Trappey, C. V. Trappey, U. H. Govindarajan, A. C. Chuang, and J. J. Sun, “A review of essential standards and patent landscapes for the IoT: A key enabler for Industry 4.0,” Adv. Eng. Informatics, vol. 33, pp. 208–229, 2017.

[39]F. Luthans, Organizational Behavior, 12th ed. McGraw-Hill Education, 2010.

[40]D. Miscenko and D. V. Day, “Identity and identification at work,” Organ. Psychol. Rev., vol. 6, no. 3, pp. 215–247, 2015.

[41]Y. Li, Q. C. Yujie Lu, and Y. Han, “Organizational Behavior in Megaprojects: Integrative Review and Directions for Future Research,” J. Manag. Eng., vol. 35, no. 4, 2019.

[42]T. A. Norton, S. L. Parker, H. Zacher, and N. M. Ashkanasy, “Employee green behavior: A theoretical framework, multilevel review, and future research agenda,” Organ. Environ., vol. 28, no. 1, pp. 103–125, 2015.

[43]H. De Hoogh, L. L. Greer, and D. N. Den Hartog, “Diabolical dictators or capable commanders? An investigation of the differential effects of autocratic leadership on team performance,” Leadersh. Q., vol. 26, no. 5, pp. 687–701, 2015.

[44]Nayak and B. B. Mishra, “Impact of leadership style on organizational effectiveness,” Manag. Labour Stud., vol. 30, no. 1, pp. 90–103, 2005.

[45]P. Ramluggun, “A critical exploration of the management of self-harm in a male custodial setting: Qualitative findings of a comparative analysis of prison staff views on self-harm,” J. Forensic Nurs., vol. 9, no. 1, pp. 23–34, 2013.

[46]L. D. Burgio and K. L. Burgio, “Institutional staff training and management: A review of the literature and a model for geriatric, long-term-care facilities,” Int. J. Aging Hum. Dev., vol. 30, no. 4, pp. 287–302, 1990.

[47]E. McGrath, H. D. Cooper‐Thomas, E. Garrosa, A. I. Sanz‐Vergel, and G. W. Cheung, “Rested, friendly, and engaged: The role of daily positive collegial interactions at work,” J. Organ. Behav., vol. 38, no. 8, pp. 1213–1226, 2017.

[48]L. Shrifian, “Collegial management to improve the effectiveness of managers, organizational behavior in educational institutions,” Procedia-Social Behav. Sci., vol. 29, pp. 1169–1178, 2011.

[49]M. Tremblay, M.-C. Gaudet, and C. Vandenberghe, “The role of group-level perceived organizational support and collective affective commitment in the relationship between leaders’ directive and supportive behaviors and group-level helping behaviors,” Pers. Rev., vol. 48, no. 2, pp. 417–437, 2019.

[50]T. M. Amabile, “A model of creativity and innovation in organizations,” Res. Organ. Behav., vol. 10, no. 1, pp. 123–167, 1988.

[51]J. Dempsey, “Moral responsibility, shared values, and corporate culture,” Bus. Ethics Q., vol. 25, no. 3, pp. 319–340, 2015.

[52]K. Kanagaretnam, Z. Xiu, and Z. Zhou, “Does Culture Matter for Corporate Philanthropic Giving?,” Emerg. Mark. Financ. Trade, vol. 55, no. 10, pp. 2365–2387, 2019.

[53]S. M. Adnan, D. Hay, and C. J. van Staden, “The influence of culture and corporate governance on corporate social responsibility disclosure: A cross country analysis,” J. Clean. Prod., vol. 198, pp. 820–832, 2018.

[54]M. Sugita and T. Takahashi, “Influence of corporate culture on environmental management performance: An empirical study of japanese firms,” Corp. Soc. Responsib. Environ. Manag., vol. 22, no. 3, pp. 182–192, 2015.

[55]E. Ucar, “Local creative culture and corporate innovation,” J. Bus. Res., vol. 91, pp. 60–70, 2018.

[56]H. Kim, “Transformational leadership, organizational clan culture, organizational affective commitment, and organizational citizenship behavior: A case of South Korea’s public sector,” Public Organ. Rev., vol. 14, no. 3, pp. 397–417, 2014.

[57]M. Tharp, “Four organizational culture types,” Hawort Organ. Cult. White Pap., 2009.

[58]A. Hartnell, A. Y. Ou, and A. Kinicki, “Organizational culture and organizational effectiveness: A meta-analytic investigation of the competing values framework’s theoretical suppositions,” J. Appl. Psychol., vol. 96, no. 4, p. 677, 2011.

[59]S. Tsui, H. Wang, and K. R. Xin, “Organizational culture in China: An analysis of culture dimensions and culture types,” Manag. Organ. Rev., vol. 2, no. 3, pp. 345–376, 2006.

[60]B. Lund, “Organizational culture and job satisfaction,” J. Bus. Ind. Mark., vol. 18, no. 3, pp. 219–236, 2003.

[61] P. A. Gambrel and R. Cianci, “Maslow’s hierarchy of needs: Does it apply in a collectivist culture,” J. Appl. Manag. Entrep., vol. 8, no. 2, p. 143, 2003.

[62]H. Mohelska and M. Sokolova, “Management approaches for Industry 4.0–the organizational culture perspective,” Technol. Econ. Dev. Econ., vol. 24, no. 6, pp. 2225–2240, 2018.

[63]S. Shamim, S. Cang, H. Yu, and Y. Li, “Management approaches for Industry 4.0: A human resource management perspective,” in IEEE Congress on Evolutionary Computation (CEC), 2016, pp. 5309–5316.