Strategy and additive technologies as the catalyst for outsourcing, process innovation and operational effectiveness

PURPOSE: There is rising interest in Industry 4.0 as a factor in the competitiveness of the organization. Although many companies are aware of the importance of Industry 4.0, the development of such initiatives in Colombia is slow. Consequently, this research investigates the impact of additive technologies as part of the Industry 4.0 concept on operational effectiveness and, therefore, the competitiveness of the organization and tries to establish the factors that hinder the adequate implementation of such new, innovative technologies. DESIGN/METHODOLOGY/APPROACH: Structural equation modeling was used to analyze the antecedents and outcomes of operational effectiveness. To this end, 946 usable questionnaires were collected from managers and personnel from Colombian organizations. FINDINGS: Initial findings show that management is aware of Industry 4.0 concepts and implements strategies for such initiatives. Nevertheless, neither process innovation nor additive technologies have a significant impact on operational effectiveness and therefore on the competitiveness of the organization. PRACTICAL IMPLICATIONS: The implementation of new innovative technologies requires the closure of the digital gap between urban and rural areas and between large and medium and small enterprises. Similarly, the concept of Industry 4.0 as a new, innovative manufacturing concept requires a transversal implementation to increase the competitiveness of the organization. ORIGINALITY/VALUE: The value of this paper lies in discussing the current technological and human capabilities and strategies that Colombian organizations, as an example of a developing nation, should improve to leverage the benefits of Industry 4.0 to remain competitive. The results are probably generalizable to other regions in developing countries throughout the world.