Study for Identification and Classification of Advanced Manufacturing Technology Implementation Drivers in Small and Medium Enterprises

Authors

  • D. V. Bhise JSPM University, Pune, India
  • M. A. Kumbhalkar JSPM Narhe Technical Campus, Pune, India
  • M. M. Sardeshmukh JSPM Narhe Technical Campus, Pune, India
  • S. A. Choudhari JSPM Narhe Technical Campus, Pune, India
  • S. H. Sarje Jayawantrao Sawant College of Engineering, Pune, India
  • N. B. Kardekar JSPM Narhe Technical Campus, Pune, India

DOI:

https://doi.org/10.26437/ajar.v11i1.855

Keywords:

Adoption. advanced manufacturing technologies. interpretive. modelling. structural

Abstract

Purpose: The primary objective of this study is to assess the factors that have the most significant impact on SMEs' adoption rate of Advanced Manufacturing Technologies (AMT).

Design/Methodology/Approach: An interpretive structural modelling (ISM) approach was applied to assess drivers for AMT adoption. Data was gathered from literature and supplemented by expert opinions from academics and professionals. The identified drivers were ranked and classified through the ISM framework, and their reliability and influence were examined using the Matrice d'impacts croisés multiplication appliquée á un classment (MICMAC) analysis.

Findings: The ISM analysis revealed that government policy support and customer/buyer pressure are primary drivers for AMT adoption in SMEs. These drivers form the foundational factors influencing the successful implementation of AMTs and enabling SMEs to develop strategic, priority-based business plans.

Research Limitation: The study is limited to SME environments, which may restrict its applicability to larger firms.

Practical Implication: Emphasising government support and responding to buyer pressure can guide SMEs in integrating AMTs more effectively.

Social Implication: Successful AMT implementation in SMEs can promote job creation, local economic growth, and sustainable manufacturing practices, benefiting society by enhancing regional competitiveness and innovation.

Originality/Value: This study provides a structured framework for understanding AMT adoption drivers in SMEs, incorporating ISM and MICMAC analyses to bridge a gap in the literature.

Author Biographies

D. V. Bhise, JSPM University, Pune, India

Dr. Dattatraya V. Bhise is an Associate Professor in the School of Mechanical and Manufacturing Science, JSPM University, Pune, India.

M. A. Kumbhalkar, JSPM Narhe Technical Campus, Pune, India

Dr. Manoj A. Kumbhalkar is an Associate Professor at Department of Mechanical Engineering, JSPM Narhe Technical Campus, Pune, India

M. M. Sardeshmukh, JSPM Narhe Technical Campus, Pune, India

Prof. Mhalsakant M. Sardeshmukh is a Professor at the Department of Electronics and Telecommunication Engineering, JSPM Narhe Technical Campus, Pune, India.

S. A. Choudhari, JSPM Narhe Technical Campus, Pune, India

Dr. Sumant A. Choudhari is an Associate Professor at the Department of Civil Engineering, JSPM Narhe Technical Campus, Pune, IndiaDepartment of Civil Engineering, JSPM Narhe Technical Campus, Pune, India.

S. H. Sarje, Jayawantrao Sawant College of Engineering, Pune, India

Dr. Suhas H. Sarje is a Professor at the Department of Mechanical Engineering, Jayawantrao Sawant College of Engineering, Pune, India.

N. B. Kardekar, JSPM Narhe Technical Campus, Pune, India

Dr. Nitin B. Kardekar is an Associate Professor at Department of Mechanical Engineering.

References

Barzegar, M., Rasi, R. E. & Niknamfar, A. H. (2018). Analyzing the Drivers of Green Manufacturing Using an Analytic Network Process Method: A Case Study. International Journal of Research in Industrial Engineering, 7, 61–83. https://doi.org/10.22105/riej.2018.108563.1031

Batrancea, I., Morar, I. D., Masca, E., Catalin, S. & Bechis, L. (2018a). Econometric Modeling of SME Performance. Case of Romania. Sustainability 2018, Vol. 10, Page 192, 10(1), 192. https://doi.org/10.3390/SU10010192

Batrancea, I., Morar, I. D., Masca, E., Catalin, S. & Bechis, L. (2018b). Econometric Modeling of SME Performance. Case of Romania. Sustainability 2018, Vol. 10, Page 192, 10(1), 192. https://doi.org/10.3390/SU10010192

Baur, M., Albertelli, P., & Monno, M. (2020). A review of prognostics and health management of machine tools. The International Journal of Advanced Manufacturing Technology, 107, 2843-2863.

Beaumont, N., Schroder, R. & Sohal, A. (2002). Do foreign-owned firms manage advanced manufacturing technology better? International Journal of Operations and Production Management, 22(7–8), 759–771. https://doi.org/10.1108/01443570210433535/FULL/XML

Bey, N., Hauschild, M. Z. & McAloone, T. C. (2013a). Drivers and barriers for implementation of environmental strategies in manufacturing companies. Cirp Annals - Manufacturing Technology, 62(1), 43–46. https://doi.org/10.1016/J.CIRP.2013.03.001

Bey, N., Hauschild, M. Z. & McAloone, T. C. (2013b). Drivers and barriers for implementation of environmental strategies in manufacturing companies. CIRP Annals, 62(1), 43–46. https://doi.org/10.1016/J.CIRP.2013.03.001

Bhise, D. V., Choudhari, S. A., Kumbhalkar, M. A. & Sardeshmukh, M. M. (2023). Assimilation of advanced manufacturing technologies in small and medium sized enterprises: an empirical analysis. Multidisciplinary Science Journal, 5(4), 2023041–2023041. https://doi.org/10.31893/Multiscience.2023041

Bhise, D. V., Choudhari, S. A., Kumbhalkar, M. A., & Sardeshmukh, M. M. (2022). Modelling the critical success factors for advanced manufacturing technology implementation in small and medium sized enterprises. 3c Empresa: investigación y pensamiento crítico, 11(2), 263-275.

Bloom, N., Kretschmer, T. & Van Reenen, J. (2011). Are family-friendly workplace practices a valuable firm resource? Strategic Management Journal, 32(4), 343–367. https://doi.org/10.1002/SMJ.879

Borges, L. A., & Tan, K. H. (2017). Incorporating human factors into the AAMT selection: a framework and process. International Journal of Production Research, 55(5), 1459–1470. https://doi.org/10.1080/00207543.2016.1259668

Bosman, L., Hartman, N., & Sutherland, J. (2020). How manufacturing firm characteristics can influence decision making for investing in Industry 4.0 technologies. Journal of Manufacturing Technology Management, 31(5), 1117–1141. https://doi.org/10.1108/JMTM-09-2018-0283/FULL/XML

Cheng, K., & Bateman, R. J. (2008). e-Manufacturing: Characteristics, applications and potentials. Progress in Natural Science, 18(11), 1323–1328. https://doi.org/10.1016/J.PNSC.2008.03.027

Darbanhosseiniamirkhiz, M., & Wan Ismail, W. K. (2012). Advanced Manufacturing Technology Adoption In SMEs: An Integrative Model. Journal of Technology Management & Innovation, 7(4), 112–120. https://doi.org/10.4067/S0718-27242012000400009

Dean, J. W., Yoon, S. J., & Susman, G. I. (1992). Advanced Manufacturing Technology and Organization Structure. Organization Science, 3(2), 203–229. https://doi.org/10.1287/ORSC.3.2.203

Dewangan, D. K., Agrawal, R. & Sharma, V. (2015). Enablers for Competitiveness of Indian Manufacturing Sector: An ISM-Fuzzy MICMAC Analysis. Procedia - Social and Behavioral Sciences, 189, 416–432. https://doi.org/10.1016/J.SBSPRO.2015.03.200

Erbay, H. & Yıldırım, N. (2019). Technology Selection for Digital Transformation: A Mixed Decision Making Model of AHP and QFD. Proceedings of the International Symposium for Production Research 2018, 480–493. https://doi.org/10.1007/978-3-319-92267-6_41

Govindan, K., Kaliyan, M., Kannan, D. & Haq, A. N. (2014). Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process. International Journal of Production Economics, 147(PART B), 555–568. https://doi.org/10.1016/J.IJPE.2013.08.018

Idrissia, M. O., Amaraa, N. & Landrya, R. (2012). SMEs’ Degree of Openness: The Case of Manufacturing Industries. Journal of Technology Management & Innovation, 7(1), 186–210. https://doi.org/10.4067/S0718-27242012000100013

Ilyukhin, S. V., Haley, T. A. & Singh, R. K. (2001). A survey of automation practices in the food industry. Food Control, 12(5), 285–296. https://doi.org/10.1016/S0956-7135(01)00015-9

Irani, Z. & Love, P. E. D. (2000). The Propagation of Technology Management Taxonomies for Evaluating Investments in Information Systems. Journal of Management Information Systems, 17(3), 161–177. https://doi.org/10.1080/07421222.2000.11045650

Jezierski, J., Rafał, D., Krzysztof, K. & Wojciech, U. (2016). Experimental Approach for Optimization of Gating System in Castings.

Joung, C. B., Carrell, J., Sarkar, P. & Feng, S. C. (2013a). Categorization of indicators for sustainable manufacturing. Ecological Indicators, 24, 148–157. https://doi.org/10.1016/J.ECOLIND.2012.05.030

Joung, C. B., Carrell, J., Sarkar, P. & Feng, S. C. (2013b). Categorization of indicators for sustainable manufacturing. Ecological Indicators, 24, 148–157. https://doi.org/10.1016/J.ECOLIND.2012.05.030

Kotha, S. & Swamidass, P. M. (2000). Strategy, advanced manufacturing technology and performance: empirical evidence from U.S. manufacturing firms. Journal of Operations Management, 18(3), 257–277. https://doi.org/10.1016/S0272-6963(99)00025-X

Lanz, M., Majuri, M. & Tuokko, R. (2013). Information Flows in Future Advanced Manufacturing Ecosystems. IFIP Advances in Information and Communication Technology, 414, 70–77. https://doi.org/10.1007/978-3-642-41266-0_9

Lee, D. M. & Drake, P. R. (2010). A portfolio model for component purchasing strategy and the case study of two South Korean elevator manufacturers. International Journal of Production Research, 48(22), 6651–6682. https://doi.org/10.1080/00207540902897780

Lee, H. L. & Whang, S. (2000). Information sharing in a supply chain. International Journal of Manufacturing Technology and Management, 1(1), 79–93. https://ideas.repec.org/a/ids/ijmtma/v1y2000i1p79-93.html

Malik, M. M., Abdallah, S. & Hussain, M. (2016). Assessing supplier environmental performance: Applying Analytical Hierarchical Process in the United Arab Emirates healthcare chain. Renewable and Sustainable Energy Reviews, 55, 1313–1321. https://doi.org/10.1016/J.RSER.2015.05.004

Marri, H. B., Irani, Z. & Gunasekaran, A. (2006). A framework of justification criteria for advanced manufacturing technology implementation in small and medium enterprises. https://pure.psu.edu/en/publications/a-framework-of-justification-criteria-for-advanced-manufacturing-

Ministry of Micro, S. & M. E. (2017). Annual Report 2017-18: Ministry of Micro, Small and Medium Enterprises.

Ministry of Statistics and Programme Implementation. (2015). Annual Report 2015-16: Contribution of different sectors to gross value added in 2014-15. Government of India.

Moyano-Fuentes, J., Sacristán-Díaz, M. & Garrido-Vega, P. (2016). Improving supply chain responsiveness through Advanced Manufacturing Technology: the mediating role of internal and external integration. Production Planning & Control, 27(9), 686–697. https://doi.org/10.1080/09537287.2016.1166277

Mrugalska, B. & Wyrwicka, M. K. (2017). Towards Lean Production in Industry 4.0. Procedia Engineering, 182, 466–473. https://doi.org/10.1016/J.PROENG.2017.03.135

Niaki, M. K., Torabi, S. A. & Nonino, F. (2019). Why manufacturers adopt additive manufacturing technologies: The role of sustainability. Journal of Cleaner Production, 222, 381–392. https://doi.org/10.1016/J.JCLEPRO.2019.03.019

Nyori, G. M. & Ogola, J. M. (2015). Advanced manufacturing technology adoption in manufacturing companies in Kenya. http://erepository.uonbi.ac.ke/handle/11295/96090

Obal, G. & Ng Outl, M. (2018). Transforming for a digitally connected future.

Oncioiu, I., Căpuşneanu, S., Türkes, M. C., Topor, D. I., Constantin, D. M. O., Marin-Pantelescu, A., & Hint, M. Ş. (2018). The Sustainability of Romanian SMEs and Their Involvement in the Circular Economy. Sustainability 2018, Vol. 10, Page 2761, 10(8), 2761. https://doi.org/10.3390/SU10082761

Raymond, L. & St-Pierre, J. (2005). Antecedents and performance outcomes of advanced manufacturing systems sophistication in SMEs. International Journal of Operations and Production Management, 25(6), 514–533. https://doi.org/10.1108/01443570510599692/FULL/XML

Sangwan, K. S., Bhamu, J. & Mehta, D. (2014). Development of lean manufacturing implementation drivers for Indian ceramic industry. International Journal of Productivity and Performance Management, 63(5), 569–587. https://doi.org/10.1108/IJPPM-06-2013-0105/FULL/XML

Shukla, M. & Shankar, R. (2022). Modeling of critical success factors for adoption of smart manufacturing system in Indian SMEs: an integrated approach. OPSEARCH, 59(4), 1271–1303. https://doi.org/10.1007/S12597-021-00566-W/TABLES/7

Sohal, A. S., Schroder, R., Uliana, E. O. & Maguire, W. (2001). Adoption of AMT by South African manufacturers. Integrated Manufacturing Systems, 12(1), 15–34. https://doi.org/10.1108/09576060110361519/FULL/XML

Stornelli, A., Ozcan, S. & Simms, C. (2021). Advanced manufacturing technology adoption and innovation: A systematic literature review on barriers, enablers, and innovation types. Research Policy, 50(6), 104229. https://doi.org/10.1016/J.RESPOL.2021.104229

Tripathy, S., Sahu, S. & Ray, P. K. (2013). Interpretive structural modelling for critical success factors of R&D performance in Indian manufacturing firms. Journal of Modelling in Management, 8(2), 212–240. https://doi.org/10.1108/JM2-11-2011-0061/FULL/XML

Unnikrishnan, S., Iqbal, R., Singh, A. & Nimkar, I. M. (2015). Safety Management Practices in Small and Medium Enterprises in India. Safety and Health at Work, 6(1), 46–55. https://doi.org/10.1016/J.SHAW.2014.10.006

Visnjic Kastalli, I. & Van Looy, B. (2013). Servitization: Disentangling the impact of service business model innovation on manufacturing firm performance. Journal of Operations Management, 31(4), 169–180. https://doi.org/10.1016/J.JOM.2013.02.001

Warfield, J. N. (1974). Developing Interconnection Matrices in Structural Modeling. IEEE Transactions on Systems, Man and Cybernetics, SMC-4(1), 81–87. https://doi.org/10.1109/TSMC.1974.5408524

Zammuto, R. F. & O’Connor, E. J. (2018). Gaining Advanced Manufacturing Technologies’ Benefits: The Roles of Organization Design and Culture. Organizational Innovation, 165–192. https://doi.org/10.4324/9780429449482-9/Gaining-Advanced-Manufacturing-Technologies-Benefits-Roles-Organization-Design-Culture-Raymond-Zammuto-Edward-Connor

Zhu, Q., Lujia, F., Mayyas, A., Omar, M. A., Al-Hammadi, Y. & Al Saleh, S. (2015). Production energy optimization using low dynamic programming, a decision support tool for sustainable manufacturing. Journal of Cleaner Production, 105, 178–183. https://doi.org/10.1016/J.JCLEPRO.2014.02.066

Downloads

Published

2025-01-08

How to Cite

Bhise, D. V., Kumbhalkar, M. A., Sardeshmukh, M. M., Choudhari, S. A., Sarje, S. H. ., & Kardekar, N. B. (2025). Study for Identification and Classification of Advanced Manufacturing Technology Implementation Drivers in Small and Medium Enterprises. AFRICAN JOURNAL OF APPLIED RESEARCH, 11(1), 388–407. https://doi.org/10.26437/ajar.v11i1.855

Most read articles by the same author(s)