Abstract

The technological advancements in the manufacturing sector confront organizations with the convergence of industrial production and information and communication technologies. The industry is supposed to realize manufacturing of individual products while maintaining economic conditions of mass production. To react to this changing environment, government and industry initiatives have been announced worldwide. Due to international integration and export-orientation of the German economy, Industry 4.0 by the German Federal Government can be considered representative for a global phenomenon of change and disruption. A vital capability to develop in such uncertain and turbulent environments is organizational agility that is defined as the ability of firms to sense environmental change and respond readily. Although well-established consulting agencies already regard organizational agility as a key ability for Industry 4.0, no systematic scientific evidence for this assertion exists. We therefore seek to answer how organizational agility can empower manufacturing companies to manage the change induced by Industry 4.0. We conduct an extensive systematic literature review, examining Industry 4.0-induced changes categorized by change factors from literature. For each category, we examine facets of organizational agility and show how companies can manage change. We discuss our results and provide implications for research and practice.

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