Title: How can the adoption of Industry 4.0 technologies drive innovation in manufacturing companies? Evidence from China and Korea

Authors: Yongping Zhong; Hee-Cheol Moon

Addresses: School of Finance and Trade, Liaoning University, Shenyang, 110136, China ' Department of International Trade, Chungnam National University, Daejeon, 34134, South Korea

Abstract: Digital manufacturing can optimise the production process and prompt adaptation to dynamic market changes, thereby enhancing firm performance. This study confirmed that adopting Industry 4.0 technology can positively impact technological competitiveness and knowledge acquisition. Both technological competitiveness and knowledge acquisition play crucial roles in promoting product, process and organisational innovation, ultimately leading to improved firm performance. The results indicated that the adoption of Industry 4.0 technology indirectly influences innovations through enhanced technological competitiveness and knowledge acquisition. More importantly, the findings also provide empirical evidence that the type of country moderated the resulting outcomes of Industry 4.0 technology in the manufacturing industry. This study, therefore, contributes to a deeper understanding of the transformation driven by Industry 4.0 in manufacturing by exploring the resulting outcomes of Industry 4.0 technology in different countries. This insight can guide managers in formulating more effective strategies to bolster innovation and enhance firm performance.

Keywords: Industry 4.0; innovation; technological competitiveness; knowledge acquisition; China; Korea.

DOI: 10.1504/IJMTM.2025.151208

International Journal of Manufacturing Technology and Management, 2025 Vol.39 No.6, pp.483 - 505

Received: 08 Jul 2024
Accepted: 23 Jan 2025
Published online: 19 Jan 2026 *

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