Integration of new technologies into your business can boost efficiency and customer service while saving money in the long run. Furthermore, adopting such tools will allow you to manage risks more effectively in an ever-evolving business landscape.

However, it is essential to identify any obstacles and challenges to technology adoption that could impede its deployment. We conducted a systematic literature review in this field in order to map its research gaps.

Cost

COVID-19 crisis has only amplified SMEs’ need to adopt and implement new technologies so that they remain competitive and thrive within an evolving business environment. Implementing such technologies, however, requires time and money investments – they should also be undertaken at an opportune rate in response to changes within business environment.

Research into this subject indicates that SMEs can reap multiple advantages by adopting Industry 4.0 technologies, including increased customer knowledge and the development of products more in line with customer requirements, process optimization via automation and reduction in non-productive activities, as well as reduced costs due to more efficient use of resources.

However, it should be noted that current research on this subject primarily explores its effects. Future studies should seek to uncover any underlying mechanisms influencing this relationship as well as test theories regarding their predictive power.

Efficiency

Technology adoption is essential to improving productivity. It enables businesses to automate tasks, streamline communication and seize opportunities quickly while cutting costs while increasing customer satisfaction. Unfortunately, SMEs face several barriers when adopting new technologies including limited time, skill sets and money resources.

Step one in overcoming these obstacles is for your business to recognize the value of new technologies, so that it can effectively communicate its benefits to employees and customers alike.

Early adopters typically seek a competitive edge and are open to dealing with minor glitches; they’re more risk-averse than innovators and require additional information about a product before adopting. Laggards tend to adopt new technology only after considerable proof has been provided of its efficacy.

Time

Key barriers for small and midsize enterprises (SMEs) when adopting new technologies include the time it takes them to adapt; this requires altering culture and mindset as well as investing in infrastructure. Furthermore, many SMEs lack access to necessary knowledge and support related to tech. This creates a productivity gap that favours larger firms due to superior access to skills, finances, and information.

Barriers fall into several subcategories within this category. Interviewees identified funding and support as primary impediments to implementing 4.0 technologies, as well as service-based models offering various technologies under one umbrella product to reduce deployment, operational, and maintenance costs while increasing SME flexibility to adapt quickly to changes in their business environments.

Scalability

Modern business applications give SMEs with more economic value (ECV). ECV is defined by its selling price; as production costs drop, its economic value rises. Furthermore, its correlation with performance increases over time.

Technology adoption by SMEs is integral to their growth and success in an increasingly competitive environment. New technologies can streamline internal processes while connecting with potential new clients; additionally, these innovations may increase productivity by decreasing employee numbers or time spent on non-core activities.

Bibliometric analysis indicates a need for additional research on the effects of technology adoption by SMEs. Such studies should take a holistic approach that takes into account all factors influencing technology adoption among SMEs.

Security

SME owners should adopt Industry 4.0 technologies because they are cost-effective and can generate economic value for customers. However, they must implement security measures to protect data and processes from hackers. In addition, SMEs must improve their internet infrastructure and software flexibility so as to accommodate for the new digital economy.

SME should utilize service-based models that give them access to technologies and infrastructure as services rather than require them to purchase and manage equipment on their own. This approach can reduce capital expenditure while speeding up deployment of technology; as well as lower the risk of security breaches and improving business continuity.