Abstract

The study explores digitalization in industrial small and medium-sized enterprises (SMEs) and the transition to Industry 4.0 through a dynamic capabilities framework. The research question aims to identify the unique capabilities of companies to cope with Industry 4.0 in the new digitalization environment. The study takes a qualitative approach and draws on nine interviews with key respondents such as the owner, executives and Industry 4.0 consultants who helped the company manage the transition to Industry 4.0. The study reveals that distinctive dynamic capabilities such as technological, organizational and human capabilities are necessary for the digitalization process and the transition to Industry 4.0. The study aims to contribute theoretically and empirically to new meanings of dynamic capabilities for digital transformation in the context of industrial SMEs.

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