administrative

sciences

Article
Impact of Industry 4.0 on Companies: Value Chain Model Analysis
Lucia Kohnová * and Nikola Salajová

Faculty of Management, Comenius University Bratislava, Odbojárov 10, 820 05 Bratislava, Slovakia
* Correspondence: [email protected]

Abstract: Although the concept of Industry 4.0 is newer, more and more companies are respond-
ing to this concept and incorporating it into their business models. Industry 4.0 arose as a result
of the development of new technologies based on automation, through which technologies can
communicate with each other. The aim of this study is to analyze the impact of Industry 4.0 on
companies from the point of view of the value chain model. The study points out why the model is a
suitable tool for evaluating changes. The research consisted of 1164 respondents, while the sample
consisted of 591 Czech companies and 573 Slovak companies. We found that 62% of companies carry
out activities in the field of robotization and automation to a large extent, and 32% carry out these
activities little or not at all. Regarding the impact of Industry 4.0 on individual activities in the value
chain, we found that companies expect the greatest impact on technological development (secondary
activity) and customer service (primary activity). On the contrary, they least expect the impact of
Industry 4.0 in the primary activities of input logistics and operation. From this point of view, we
can say that companies perceive the impact of Industry 4.0 on the activities taking place in their
value chains. However, it is important to capture these changes, react appropriately to them and
remain competitive.

Keywords: Industry 4.0; technology; value chain; digitalization

1. Introduction
Each of us has been aware of the exponential pace of change in the time in which
we live in recent years. The first electronic computer was made in 1946, weighed 30 tons
and had several thousand tubes. Today, almost 80 years later, the performance of the
Citation: Kohnová, Lucia, and
computer has increased several times, the weight and size have decreased several times,
Nikola Salajová. 2023. Impact of
and the cost of operation has also decreased. These rapid changes in technology are
Industry 4.0 on Companies: Value
attractive to consumers and it is the role of companies to understand the consumer’s
Chain Model Analysis. Administrative
Sciences 13: 35. https://doi.org/
requirements correctly and deliver the product that the company is interested in. Today,
10.3390/admsci13020035
inside organizations, there is pressure to ensure that organizational structures are flat,
that employees have the necessary skills, that new innovations are created all the time,
Received: 7 December 2022 etc. Although these aspects are very important, they cannot be applied unless the context
Revised: 19 January 2023
of the organization is understood—the historical development of the organization and
Accepted: 20 January 2023
management of work (Hoag and Cooper 2006). Competition brings many challenges for
Published: 28 January 2023
companies operating on the market, moreover, today we can talk about competition in
a global sense. Today’s businesses need to re-engineer their business models to bring
something efficient and smart to the market at the same time. These characteristics are
Copyright: © 2023 by the authors.
typical for Industry 4.0, which is adopted by more and more organizations. The Industry 4.0
Licensee MDPI, Basel, Switzerland. concept responds to the challenges brought about by the current global competition. Based
This article is an open access article on this, it is necessary to change business models and value chains in organizations so that
distributed under the terms and they can integrate technological innovations supporting the creation of values, which is
conditions of the Creative Commons mainly based on the use of available data (Martínez-Olvera and Mora-Vargas 2019). The
Attribution (CC BY) license (https:// model must be based on an underlying process that creates value for the customer. Industry
creativecommons.org/licenses/by/ 4.0 affects many activities that create value. Digitalization affects all industries in which
4.0/). it increases efficiency. The concept of Industry 4.0 and the value chain model enable the

Adm. Sci. 2023, 13, 35. https://doi.org/10.3390/admsci13020035 https://www.mdpi.com/journal/admsci

Adm. Sci. 2023, 13, 35 2 of 13

integration of business and production processes from supplier activities to the customer,
and therefore businesses should build business models based on their characteristics (Ajayi
and Laseinde 2021). We live in a digital society, which has its advantages, but also pitfalls.
We have access to a wealth of information and services. Artificial Intelligence helps us
solve challenging medical, engineering and environmental problems. When we look back
2 decades and then imagine the next 2 decades, we can definitely say that we will be living,
working and communicating in a different world. Digital transformation brings with it
many challenges that need to be appropriately responded to and prepared for (Dastbaz
and Cochrane 2019).

2. Literature Review
The term Industry 4.0 is no longer new to our society and originated in Germany,
while this country also became a leader in the transition to this concept. Industry 4.0
is based on the concept of “Internet of Things and Internet of Services”, which means
that every object (machine, product, component) contains embedded digital technology,
thanks to which interaction with another object or person takes place. Half of the industrial
enterprises in Germany are involved in this concept, and by 2030, German enterprises
should operate on the internet industry system (Pozdnyakova et al. 2019). Romanova and
Kuzmin (2021) claim that Industry 4.0 is based on cyber-physical systems, the Internet of
Things, 3D printing and networks. We know 4 groups of important technological systems:
digital technologies, advanced materials, biotechnologies and technologies focused on
environmental protection and new energy. The Fourth Industrial Revolution promotes
institutions that create networked structures of commerce, science, education, and a net-
work of producers of individual products. Economic systems are being transformed into
dynamic network systems with a flexible structure of internal relations thanks to ICT
(Fedushko et al. 2020), digital platforms and digital technologies. Systems can respond
promptly to changes in the environment and disruption, which allows the company to
adapt to the current market situation with new technologies (Romanova and Kuzmin 2021).
Industry 4.0 arose as a result of the discovery of new technologies—digital and Internet.
These technologies are part of automated processes that interact with each other without
human intervention (Sukhodolov 2019). For organizations that have built a modern IT
infrastructure, the transition to Industry 4.0 will be easier and they expect an opportunity
rather than a threat. Linking processes through IT infrastructure leads to higher efficiency
of the production process—intelligent machines will be able to communicate with each
other. The challenge for organizations is to find a workforce that has the knowledge needed
to implement such a production flow. This process will change the relationships between
organizations, suppliers and customers, i.e., the entire value chain. Production will be more
flexible, adapted to customer needs (Sima et al. 2020).
Industry 4.0 is a model of advanced production that is slowly being adopted by all
countries in all industries. The concept calls for thinking about impacts, analysis of options
and practical studies carried out with academic and business partners. A complete transition
to Industry 4.0 requires the necessary knowledge (Pereira Carvalho and Cazarini 2020).

2.1. The Concept of Value Chain

Porter introduced the concept of “value creation” into management theory, which was
used in economics and from this concept the “value chain” arose. It serves as a strategic
tool suitable for analyzing and planning activities in organizations (Friedrichsen and Mühl-
Benninghaus 2013). The model (Figure 1) includes the activities that a business must
undertake to bring a product or service from its conception to its final use, recycling or
reuse (Ponte et al. 2019). Activities are divided into 2 categories: primary, which physically
affect the creation of a product or service, its sale to the consumer, and the performance
of after-sales services, and secondary, which either add value by themselves or through
primary activities and other support activities (Rao et al. 2008). Secondary activities are
related to procurement, corporate infrastructure, technological development and human
 reuse (Ponte et
undertake toal. 2019).
bring Activities
a product or are divided
service frominto 2 categories:toprimary,
its conception which
its final use, physically
recycling or
reuse (Ponte et al. 2019). Activities are divided into 2 categories:
affect the creation of a product or service, its sale to the consumer, and the performance primary, which physically
affect the creation
of after-sales services, of and
a product or service,
secondary, which itseither
sale toaddthe value
consumer, and the performance
by themselves or through
of after-sales
primary activities services,
and other and secondary,
support activitieswhich either
(Rao addet al.value
2008).bySecondary
themselvesactivities
or through are
Adm. Sci. 2023, 13, 35 primary activities and other support activities (Rao et
related to procurement, corporate infrastructure, technological development and human al. 2008). Secondary activities 3 are
of 13
related to procurement, corporate infrastructure, technological
resources management. The value chain is based on the transformation process, starting development and human
resources
with management.
the insertion The value
of production chain into
factors is based
the on the transformation
“inbound process, starting
logistics” process, they are
with the
transformed, insertion of production
formed by “operations”
resources management. factors
The value chain into the
intois products, “inbound
based on the then logistics”
stored “outbound
transformation process, they
process,logistics”, are
starting
transformed,
with thesold formed
insertion by “operations”
of production into
factors into theproducts, then stored “outbound logistics”,
promoted, and distributed by “marketing and“inbound
sales” and logistics” process,
finally there are they are
activities
promoted,
transformed, sold and distributed
formed by by “marketing
“operations” into and sales”
products, then and finally
stored there arelogistics”,
“outbound activities
related to customers and warranty “service” activities (Friedrichsen and Mühl-Ben-
related to sold
promoted, customers and warranty
andactivity
distributed by chain “service” and
“marketing activities
sales” (Friedrichsen
and finally andare Mühl-Ben-
ninghaus 2013). Each in the incurs costs, connects assets,there
is assignedactivities
oper-
ninghaus
related to 2013). Each
customers andactivity
warrantyin the chain incurs
“service” costs,
activities connects assets,
(Friedrichsen and is assigned oper-
Mühl-Benninghaus
ating costs, and a cost estimate is made for each activity (Ike 2017). The creation of the
ating
2013). costs,
Each and
activitya cost estimate
in the chain is madecosts,
incurs for each activity
connects (Ikeis2017).
assets, assignedTheoperating
creation of the
costs,
value
value
chain
chain
results
results
from
from
the
the
industry
industry
ininwhich
which
the
the
company
company
operates.
operates.
Evenififthe
Even
thevalue
value
and a cost estimate is made for each activity (Ike 2017). The creation of the value chain
chains
chains of companies operating ininthe
thesame industry are
are similar, there are
arestill
stilldifferences
differences
results of companies
from the industryoperating
in which same
the industryoperates.
company similar,
Eventhere
if the value chains of
between
between them
them that are a source
that areina thesource of competitive
of industry
competitive advantage.
advantage. The
The difference can be ininitems
items
companies operating same are similar, there aredifference can be between
still differences
in the
in
them product
the product
that areline,
aline,inin
source different
different consumers,
consumers,
of competitive geographical
geographical
advantage. area, distribution
area, distribution
The difference channels,
can be inchannels,
items in etc. etc.
the
(Porter
product1985).
(Porter 1985). The
line, in The value chain
value chain
different helps managers
helps managers
consumers, geographical answer
answer the
area,the question “what
question “what
distribution is the
is theetc.
channels, company
company
(Porter
good
good at”,at”,
1985). butbut
The onon
value thetheother
chain other hand,
helpshand, ititdoes
managers not
notanswer
doesanswer answer the
the question
the question question “what
“what“what
is the isis the
thecompany
company company
good
better
at”,than
better than
but thethe
on competition”
other hand, (Dyer
competition” doesetnot
it(Dyer etal. 2017).
al.answer
2017). the question “what is the company better
than the competition” (Dyer et al. 2017).

Figure
Figure 1.
1. The
The generic
generic value
value chain
chain model.
model. Source:
Source: (Porter
(Porter 1985).
1985).
Figure 1. The generic value chain model. Source: (Porter 1985).
In the Figure 2, we
we present
present individual
individual primary and secondary activities in more
more detail
In the
(Rao Figure
et al. 2008).2, we present individual primary and secondary activities in more detail
(Rao et al. 2008).
Primary activities Secondary activities
Primary activities Secondary
Inbound logistics are activities focused on inputs, Procurement activities
represents the function of buying in-
Inbound
it involves material handling, storage, inventory puts that are used in thethe
logistics are activities focused on inputs, Procurement represents function of
enterprise’s buying
value in-
chain.
it involves
control,material
transporthandling,
planning,storage,
return ofinventory
raw mate- puts that are inputs
Purchased used inare
theraw
enterprise’s value
materials, chain.
supplies,
control,
rials transport
and inputsplanning, return of raw mate-
to suppliers. Purchased inputs are buildings,
machines, equipment, raw materials,
etc. supplies,
rialsOperations
and inputsare
to suppliers.
activities that transform inputs machines,
Technologyequipment, buildings,
Development etc. related to
are activities
into a final
Operations areproduct, such
activities as production,
that transform machine product and
inputs Technology process research
Development and development,
are activities related to
intohandling, packaging,
a final product, such asassembly, testing,
production, and product
machine processand
optimization, equipment
process research design, com-
and development,
maintenance
handling, of production
packaging, equipment.
assembly, puter software
testing, and process development,
optimization, etc. design, com-
equipment
maintenance of production equipment.
Figure 2. Cont. puter software development, etc.
Adm. Sci.
Adm. Sci. 2023,
2023, 13,
13, 35
x FOR PEER REVIEW 44of 14
of 13

Outbound logistics are activities associated with Human Resource Management is a set of activities
collection, storage, distribution of final products associated with recruitment, selection, training
to customers. They also include order processing and compensation of employees, relations, devel-
and planning. opment of employee skills, motivation, etc.
Marketing and Sales are activities related to the Firm Infrastructure includes activities such as
sale of final products to customers, methods that management, organizational structure, strategic
make customers buy the product such as adver- planning, finance, accounting, law, government
tising, promotion, sales force, channel selection, affairs, quality control, information systems, etc.
price.
Services are activities related to increasing and
maintaining the value of the product, such as in-
stallation, repair, training, product modification,
etc.
Figure 2. Primary and secondary activities. Source: (Rao et al. 2008).

If an
If an organization
organization wants
wants toto gain
gain aa competitive
competitive advantage, its value
advantage, its value chain
chain must
must be
be
managed as a system, not as a set of separate activities (Porter 1990).
managed as a system, not as a set of separate activities (Porter 1990).

2.2. The
2.2. The Value
Value Chain
Chain inin the
the Conditions
Conditions of of Industry
Industry 4.0
4.0
Before the introduction of modern technologies, activities in the value chain were
Before the introduction of modern technologies, activities in the value chain were
carried out through manual processes and verbal communication. The first wave of IT
carried out through manual processes and verbal communication. The first wave of IT
took place in the 1960s and 1970s, causing automation in some value chain activities such
took place in the 1960s and 1970s, causing automation in some value chain activities such
as order processing, invoice payment, computer-assisted activities. The second wave of
as order processing, invoice payment, computer-assisted activities. The second wave of
transformation took place in the 1980s and 1990s, when the Internet entered the market,
transformation took place in the 1980s and 1990s, when the Internet entered the market,
enabling ubiquitous connectivity. Thanks to the Internet, activities were coordinated
enabling ubiquitous connectivity. Thanks to the Internet, activities were coordinated and
and integrated, which was reflected in cooperation with external suppliers, customers
integrated, which was reflected in cooperation with external suppliers, customers and
and other countries. These two waves caused an increase in productivity thanks to the
other countries. These two waves caused an increase in productivity thanks to the trans-
transformation of the value chain, but the products themselves were not so much affected
formation of the value chain, but the products themselves were not so much affected by
by the transformation. It brought a lot of innovations, an increase in productivity and
the transformation. It brought a lot of innovations, an increase in productivity and eco-
economic growth to a higher degree than the previous two. Product manufacturing has
nomic
changed growth to achain
the value higher degree than
in product design,themarketing,
previous manufacturing,
two. Product manufacturing has
after-sales service,
changed the value chain in product design, marketing, manufacturing,
and new activities such as product data analysis and product security have emerged (Porter after-sales service,
and
and new activities such
Heppelmann 2014).asDue product data
to the analysisofand
influence product
Industry 4.0,security have emerged
value chains (Por-
are changing
ter and Heppelmann 2014). Due to the influence of Industry 4.0, value
from mass production to products tailored to the customer. The customer is perceived as chains are changing
from massand
a partner production
can choose to products tailoredwill
which material to the
becustomer.
used in the The customer is
production of perceived
the productas
aand
partner and can choose which material will be used in the production
also which technology will be used (Weking et al. 2020). Information technology is of the product and
also whichproducts,
changing technology theywill be used
have (Weking
become et al.systems
complex 2020). Information
combining technology is chang-
hardware, software,
ing products,
sensors, they have
data storage, become complex
microprocessors andsystems combining
connectivity hardware,
in different ways.software, sensors,
The products are
data storage, microprocessors and connectivity in different ways.
smart and connected, they go through many improvements in the production itself, theyThe products are smart
and connected,
include wirelessthey go through
connection, thusmany improvements
starting a new era ofincompetition.
the production Theitself, they include
products contain
wireless
new functionalities, are more reliable, usable and better than traditional products. The new
connection, thus starting a new era of competition. The products contain new
functionalities,
nature of products are disrupts
more reliable, usable
traditional andchains
value betterand
thanforces
traditional products.
organizations The new
to react and
nature of products
reorganize processes disrupts
(Portertraditional value chains
and Heppelmann andDigital
2014). forces transformation
organizations toaffects
react and
the
reorganize processes of
overall reengineering (Porter and Heppelmann
organizations. Technologies2014).
buildDigital
visiontransformation
across the valueaffects the
chain and
overall reengineering
are the foundation of organizations.
for automation to enableTechnologies
efficiency andbuild vision across the
competitiveness. Whenvalue chain
building
and are the foundation for automation to enable efficiency and competitiveness.
a business strategy, the organization must therefore consider the alignment of digital When
building a business
and information strategy,
systems. the organization
Several studies presentmustthat
therefore
adaptiveconsider the alignment
and digitally of
oriented
digital and information
organizations are more systems.
profitable Several studies present
and generate that adaptive
higher sales (Ribeiro and digitally
2019). ori-
Research
ented organizations
conducted by Nagy et areal.more
(2018)profitable and the
investigated generate
impact higher sales (Ribeiro
of Industry 4.0 on the2019). Research
development
of the business
conducted strategy
by Nagy of (2018)
et al. the value chain. Thethe
investigated authors
impactfound that Hungarian
of Industry 4.0 on thecompanies
develop-
Adm. Sci. 2023, 13, 35 5 of 13

that use CPS, CPPS and Big Data technologies have a higher level of logistics services, more
efficient processes, higher financial and market performance and are more competitive.
Hungarian companies also emphasize the systematic analysis of the data they produce.
Over the next period, research respondents plan to invest in IoT. The study also found that
optimization of production processes is a fundamental aspect to achieve optimal production
and economies of scale (Nagy et al. 2018).
Based on the findings, we can claim that in the digitalization environment there is
a need to change the value chain in the area of research and development, production
and sales in such a way that it adapts to the dynamic market. The impact of digital
transformation on the value chain does not only concern the specific value chain, but also
emphasizes the role of data in the virtual value chain, which emerges as a new element in it.
The premise of a virtual value chain is data generation. As part of the digital transformation,
data permeates all primary and secondary activities of the value chain, thereby affecting
each link of value creation. Thus, the virtual value chain originates in the physical value
chain and is part of it. Therefore, it is important for companies to analyze the impact of
digital transformation on the value chain from a data life cycle perspective (Li et al. 2022).

3. Materials and Methods

The aim of this study is to analyze the impact of Industry 4.0 on companies from the
perspective of value chain model. Further through deeper analysis we aim to examine the
focus of current and planned activities for development of organizational specifics and
areas, namely focus on technological advance and automation and digitalization. This
original research was conducted on 1164 companies from Slovak Republic and Czech
Republic in 2020/2021. Research was conducted through electronic questionnaire that
was distributed to managers and owners of Slovak and Czech companies. Within the
questionnaire, respondents were asked a control question regarding their involvement
and understanding of organizational strategy. Final sample consisted of respondents who
are involved and understand strategy of the company. The sample consisted of 591 CZ
companies and 573 SK companies, while in each group we have covered the sectoral distri-
bution, size and maturity diversity (Table 1). For the purpose of data representativeness
and generalization of results for statistical population, each sample group (SK, CZ) consists
of more than 384, with confidence level 95% and confidence interval 5.

Table 1. Categorization of research sample (N = 1164).

Categorization SK CZ
services 50.26% 45.01%
industry 39.93% 41.96%
other 9.81% 13.03%
micro 21.47% 17.60%
small 31.59% 24.03%
medium 23.73% 27.92%
large 23.21% 30.46%
domestic 73.12% 81.05%
subsidiary 20.07% 12.18%
other 6.81% 6.77%
starting 2.44% 3.55%
growing 17.98% 15.57%
mature 79.58% 80.88%
ALL 49.23% 50.77%

Industrial and service sectors were analyzed and compared within research questions
to acquire a deeper understanding on how Industry 4.0 challenges effect different sectors.
Research questionnaire was a part of large research project focused on transforming the
management paradigm under the influence of Industry 4.0 and consisted of total number
 Industrial and service sectors were analyzed and compared within research ques-
tions to acquire a deeper understanding on how Industry 4.0 challenges effect different
sectors. Research questionnaire was a part of large research project focused on transform-
Adm. Sci. 2023, 13, 35 ing the management paradigm under the influence of Industry 4.0 and consisted of6 of total
13
number of 19 questions. For the purpose of this research, we have focused on 8 questions,
while 5 of them focused on categorization of the research sample, and three questions on
the topic of the research. The main research question was based on the proposed value
of 19 questions. For the purpose of this research, we have focused on 8 questions, while
chain model (Figure 3), where we questioned the respondents about “What significant
5 of them focused on categorization of the research sample, and three questions on the
impacts of Industry 4.0 (changes) do you expect within your organization in the following
topic of the research. The main research question was based on the proposed value chain
areas?” with options based on value chain model:
model (Figure 3), where we questioned the respondents about “What significant impacts
of• Industry
Company’s internaldo
4.0 (changes) environment
you expect (management, finances, administrative
within your organization processes)
in the following areas?”
• options
with Humanbased
resources management
on value chain model:
•• Company’s
Technology, technological
internal development
environment (management, finances, administrative processes)
•• Human resources management(relationship with business partners)
Purchasing and procurement
•• Technology,
Inbound logistics and supply
technological development
•• Purchasing
Main production processes (relationship with business partners)
and procurement
•• Inbound
Outbound logistics
logistics and(order processing)
supply
•• Marketing and sales
Main production processes (customer interface)
•• Services (customer service)
Outbound logistics (order processing)
•• Marketing
Changes in thesales
and external environment
(customer (taxes, regulations, laws)
interface)
• Respondents
Services couldservice)
(customer answer on a scale 1–4, where 1 represented no expected impact
•andChanges in thevery
4 represented external environment
strong impact. (taxes, regulations, laws)

Figure3.3.Value
Figure Valuechain
chainmodel
modelperspective
perspectiveofofthe
theanalysis.
analysis.

Respondents
Based on thecould answer
Industry on a scalereview
4.0 literature 1–4, where 1 represented
and current state ofno expected
the impact
knowledge, we
and 4 represented
further build upon very strong that
activities, impact.
companies are currently carrying out in their organiza-
tion.Based
„Howonmuchthe Industry 4.0carried
activity is literature
outreview and current state
in the organization of the
for the knowledge,
development ofwe
the
further build
following upon activities, that companies are currently carrying out in their organiza-
factors?”
tion. “How much activity is carried out in the organization for the development of the
• Quality of human resources
following factors?”
• Optimization and efficiency of processes
•• Quality of human
Knowledge resources
sharing among employees
•• Optimization and efficiency of processes
Generating innovation
•• Knowledge
Building the sharing
brand among
and imageemployees
of the organization
•• Generating innovation
Relations with customers
•• Building
Relationsthe brand
with and
other image entities
external of the organization
•• Relations with customers
Technology—hardware, devices
•• Relations with other externalsoftware,
Technology—applications, entities licenses
•• Technology—hardware,
Automation, digitalization devices
• Technology—applications, software, licenses
Respondents could answer on a scale 1–4, where 1 represented no activities are cur-
• Automation, digitalization
rently carried out for development and 4—activities are carried out for development.
Respondents could answer on a scale 1–4, where 1 represented no activities are
currently carried out for development and 4—activities are carried out for development.
Second part of the analysis looked at the specifics regarding technological transforma-
tion, meaning expected effect on technology by Industry 4.0 as well as activities carried
out for development of automation and digitalization. For the purpose of explaining the
current status, we have questioned the respondents about “Which arguments would you
use to promote digital transformation in your organization?” with possible choices:
• The level of future risks (risks if digitalization were not carried out)
Adm. Sci. 2023, 13, 35 7 of 13

• Immediate return (profit support, ROI)

• The need for progress (KPIs, company ambitions)
• Because the competition does it (general argument)
• Because it is written about, it is discussed everywhere
The purpose of this questions was to analyze whether the current activities and
expectations of organizations have the impact on their arguments in favor for digital
transformation. To examine the links between analyzed factors in our research we have
used correlation analysis based on Pearson’s correlation coefficient and non-parametric
Chi-square test to examine the significance of differences in our sample. For the purpose of
analyzing qualitative data, we follow Rimarčík (2007), where correlation strength is defined
as follows: 0.1–0.3 as low, 0.3–0.5 as moderate and more than 0.5 as high. According to
this assessment, we have highlighted correlations with highest outcome in Tables 2 and 3
for better clarity of results. Chi square test results were significant at p = 0.05. Research
findings provide detailed view on current Industry 4.0 challenges in companies and their
approach to sustainable development through using technologies and their implementation
for future success.

Table 2. Correlation analysis of value chain model areas and conducted activity in secondary activities.

Company’s Internal Purchasing and

Technology,
Environment Human Resources Procurement
Technological
(Management, Finances, Management (Relationship with
Development
Administrative Processes) Business Partners)
Quality of human resources 0.19 0.23 0.19 0.06
Optimization and efficiency of
0.16 0.18 0.21 0.16
processes
Knowledge sharing among
0.13 0.14 0.14 0.05
employees
Generating innovation 0.22 0.17 0.27 0.13
Building the brand and image of
0.12 0.11 0.13 0.15
the organization
Relations with customers 0.14 0.12 0.15 0.15
Relations with other external
0.12 0.10 0.03 0.19
entities
Technology—hardware, devices 0.14 0.15 0.28 0.17
Technology—applications,
0.16 0.12 0.29 0.14
software, licenses
Automation, digitalization 0.21 0.21 0.32 0.16

Table 3. Correlation analysis of value chain model areas and conducted activity in primary activities.

Changes in the
Inbound Outbound Marketing and Services
Main Production External Environment
Logistics and Logistics (Order Sales (Customer (Customer
Processes (Taxes, Regulations,
Supply Processing) Interface) Service)
Laws)
Quality of human
0.03 0.09 0.10 0.15 0.15 0.11
resources
Optimization and
0.12 0.13 0.16 0.17 0.13 0.07
efficiency of processes
Knowledge sharing among
0.01 0.02 0.06 0.12 0.11 0.10
employees
Generating innovation 0.13 0.15 0.15 0.22 0.17 0.08
Building the brand and
0.09 0.03 0.14 0.24 0.18 0.10
image of the organization
Relations with customers 0.10 0.06 0.15 0.20 0.18 0.08
Relations with other
0.11 0.04 0.14 0.12 0.12 0.12
external entities
Technology—hardware,
0.17 0.18 0.18 0.12 0.10 0.07
devices
Technology—applications,
0.11 0.15 0.14 0.15 0.12 0.08
software, licenses
Automation, digitalization 0.16 0.18 0.20 0.17 0.15 0.07

4. Results
Value Chain Model assessment in our research presents an important aspect in exam-
ining the impact of Industry 4.0 on companies. It is possible to assess the primary as well as
 Technology—applications, software,
0.11 0.15 0.14 0.15 0.12 0.08
licenses
Automation, digitalization 0.16 0.18 0.20 0.17 0.15 0.07

4. Results
Adm. Sci. 2023, 13, 35 8 of 13
Value Chain Model assessment in our research presents an important aspect in ex-
amining the impact of Industry 4.0 on companies. It is possible to assess the primary as
well as supporting activities of businesses. In our sample of 1164 companies in Central
supporting
Europe, weactivities of businesses.
can observe, In our sample
that the highest averageof assessment
1164 companies in Central
of expected Europe,
impacts ofwe
In-
can observe, that the highest average assessment of expected impacts
dustry 4.0 is on Technology Development (both countries SK and CZ with similarof Industry 4.0 is on
re-
Technology Development
sponse), followed (both
by impact oncountries
CustomerSK and CZ
Service, with
with similarassessment
average response), offollowed
2.99 outby of
impact oncompanies
4 for SK Customer Service,
and 2.89with average
out of assessment
4 for CZ companiesof 2.99 out of
(Figure 4).4The
for SK companies
lowest and
expectation
2.89 out of 4 for
of Industry 4.0 CZ companies
impacts can be(Figure
observed4). The lowest expectation
in primary of Industry
activities such as Inbound4.0 impacts
logistics
can be observed
and operations. in primary activities such as Inbound logistics and operations.

Figure4.4.Average
Figure Averageassessment
assessmentofofvalue
valuechain
chainmodel
modelactivities
activitiesofofSK,
SK,CZ
CZcompanies.
companies.

In
Inregard
regardtotoexpected
expectedchanges,
changes,companies
companies have
havebeen
beenactive in in
active many
many areas of of
areas organiza-
organi-
tion, in order to cope with changing environment as well as to sustain
zation, in order to cope with changing environment as well as to sustain and gain com- and gain competitive
advantages. Following
petitive advantages. Table 2 presents
Following correlation
Table 2 presents analysis analysis
correlation of activities carried out
of activities by
carried
companies in context of supporting activities in Value Chain Model.
out by companies in context of supporting activities in Value Chain Model. Results of Results of correlation
analysis
correlationpoint to the point
analysis importance
to the of developing
importance of quality of human
developing qualityresources,
of human optimizing
resources,
Adm. Sci. 2023, 13, x FOR PEER REVIEW 9 of 14
processes, idea generation and also technologies in business supporting
optimizing processes, idea generation and also technologies in business supporting activities. Looking
activ-
specifically
ities. Looking in automation
specifically inand digitalization
automation we observe moderate
and digitalization we observe correlation
moderatefor com-
correla-
pany´s internal environment (infrastructure), HRM and Technology.
tion for company´s internal environment (infrastructure), HRM and Technology.
Nexttable
Next tablepresents
presentsthethecorrelation
correlationininthethecontext
contextofofprimary
primaryprocesses
processesininValue
ValueChain
Chain
Model.One
Model. Oneofofthethe highest
highest correlations
correlations waswas found
found forfor Marketing
Marketing andand sales
sales andand the im-
the impor-
tance of idea
portance of generation, brandbrand
idea generation, imageimage
and customer
and customerrelations. Automation
relations. and digitaliza-
Automation and digi-
tion correlates
talization mostlymostly
correlates with outbound logistics
with outbound in our research.
logistics in our research.
Presented
Presentedresults
resultsshow,
show,that companies
that companies in in
ourour
sample
samplecarry outout
carry activities for for
activities develop-
devel-
ment in selected
opment areasareas
in selected mainly to cope
mainly to with
cope challenges of Industry
with challenges 4.0 that4.0
of Industry effect
thatsupporting
effect sup-
activities (Figure 5).(Figure 5).
porting activities

Figure5.5.Value
Figure Valuechain
chainmodel
modelactivities
activitiesassessment
assessmentbased
basedononcorrelation
correlation analysis.
analysis.

Recentresearch
Recent researchininthe
theliterature
literaturehas
haspointed
pointedout
outthe
thefact
factthat
thatIndustry
Industry4.04.0does
doesnot
not
affectonly
affect onlyindustrial
industrialcompanies,
companies,but butall
allofofcompanies
companiesincluding
includingservice
servicesectors.
sectors.Following
Following
on
onthat,
that,we
wehave
havecompared
comparedindustrial
industrialsectors
sectorsininour
oursample
samplewith
withservice
servicesectors
sectorstotoanalyze
analyze
exact
exactdifferences
differencesininthe
thecontext
contextofofexpectations
expectationsand andactivities
activitiespresented
presentedininTable
Table4.4.InInthe
the
Value Chain Model, only small differences occur in supporting activities, where industrial
sectors expect slightly stronger impact of Industry 4.0 in average. Larger differences can
by observed in primary activities, mainly logistics and production processes, which are
more common in context of industry and production.
Adm. Sci. 2023, 13, 35 9 of 13

Value Chain Model, only small differences occur in supporting activities, where industrial
sectors expect slightly stronger impact of Industry 4.0 in average. Larger differences can
by observed in primary activities, mainly logistics and production processes, which are
more common in context of industry and production.

Table 4. Average assessment of expected impacts of Industry 4.0 in selected areas based on sector.

Services Industry
Company’s internal environment (management, finances,
2.56 2.62
administrative processes)
Human resources management 2.45 2.53
Technology, technological development 2.92 3.01
Purchasing and procurement (relationship with business partners) 2.51 2.62
Inbound logistics and supply 2.21 2.56
Main production processes 2.12 2.74
Outbound logistics (order processing) 2.41 2.66
Marketing and sales (customer interface) 2.83 2.71
Services (customer service) 3.00 2.83
Changes in the external environment (taxes, regulations, laws) 2.51 2.45

Similarly in the context of current activities for development, we observe only small
differences in average assessment. In the research sample 33% of companies expect very
strong impacts in technology and technological development, as well as in customer
services. Followed by 36% of companies in both cases expect quite strong or moderate
impacts. Most of the companies in both examined groups (90%) carry out activities to
develop relations with customers.
It is interesting to see, that service and industrial sectors do not show great differ-
ences in their attitude towards Industry 4.0 challenges (Table 5). It is unquestionable that
by taking advantages of Industry 4.0 technologies and challenges companies can gain
important lead in their industry. However, we still observe, that Slovak and Czech compa-
nies lack behind in country rankings and economic development compared to other EU
countries (Čajka and Abrhám 2019) and are not the leaders in this transformation. One of
the reasons may be the understanding behind what Industry 4.0 brings, and what are the
actual challenges that company needs to face. In this context we have examined the main
arguments for digital transformation in the organization. First in the context of expected
impacts of Industry 4.0 on technologies (Table 6) and second in context with activities in
automation and digitalization (Table 7).

Table 5. Average assessment of current activities conducted in selected areas based on sector.

Services Industry
Quality of human resources 3.10 3.01
Optimization and efficiency of processes 3.04 3.01
Knowledge sharing among employees 3.05 2.92
Generating innovation 2.70 2.72
Building the brand and image of the organization 3.23 3.20
Relations with customers 3.47 3.45
Relations with other external entities 3.01 3.13
Technology—hardware, devices 2.82 2.93
Technology—applications, software, licenses 2.99 2.91
Automation, digitalization 2.76 2.69
Adm. Sci. 2023, 13, 35 10 of 13

Table 6. Chi square test analysis for arguments for digitalization in context of perceived and expected
change in technology.

The Level of Future

The Need for Progress Because the Because It Is Written
Risks (Risks if Immediate Return
(KPIs, Company Competition Does It about, It Is Discussed
Digitalization Were (Profit Support, ROI)
Ambitions) (General Argument) Everywhere
Not Carried Out)
perceived high level of
54% 25% 69% 10% 4%
change in technology
perceived low level of
43% 25% 58% 13% 6%
change in technology
Chi-square statistics 12.82, p = 0.00 - 12.48, p = 0.00 - -

Table 7. Chi square test analysis for arguments for digitalization in context of conducted activity in
area of automation, digitalization.

The Level of Future

The Need for Progress Because the Because It Is Written
Risks (Risks If Immediate Return
(KPIs, Company Competition Does It about, It Is Discussed
Digitalization Were (Profit Support, ROI)
Ambitions) (General Argument) Everywhere
Not Carried Out)
high activity in automation,
55% 27% 68% 9% 4%
digitalization
low activity in automation,
44% 22% 60% 13% 7%
digitalization
Chi-square statistics 11.56, p = 0.00 4, p = 0.04 7.96, p = 0.01 8.53, p = 0.00

Companies that perceive high level of impact from Industry 4.0 on technologies used
mostly the argument of need for progress (69%), followed by level of future risks (54%).
Companies that perceive low level of impact on technology from Industry 4.0, use both
arguments significantly less that the first group. Only small percentage of companies see
the argument as general, or because the topic is being discussed in the outside world.
Companies that show high activity in automation and digitalization also use the
argument of need for progress significantly more (68%) than companies that show low
activity (60%). Similarly, 55% use the argument of future risks, compared to 44% among
those that show low activity. Statistical significance was observed also in case of immediate
return, which was used more as an argument in group of high activity in automation and
digitalization. On the other hand, the general arguments are used more often by companies
that show low activity in automation and digitalization, precisely by 20%.

5. Discussion and Conclusions

The concept of Industry 4.0 and its challenges was first presented ten years ago
and has been an important aspect of many decision-making processes in organizations.
While many challenges are often spoken in context of technology such robotization and
automation of production, these challenges go far behind and effect not only industrial
companies but service companies as well. The understanding and seeing the necessity
for implementation of new challenges is very similar in both industrial and service sector,
as our results present. This is also confirmed by analyzing Value Chain Model in context
of Industry 4.0 impacts in our research. The most activities conducted by companies in
our research sample are to reflect challenges effecting supporting activities of companies
such as internal environment (firm’s infrastructure) and supporting processes, human
resource management and technology. Within primary activities, we observed strong
focus on marketing in correlation with activities such as building brand image, relations
with customers and external subjects, which could be affected also by COVID-19 pandemic,
that has led companies to shift their marketing activities and strategies to cope with new
conditions. This is in line with results of Tittelbachová et al. (2022) study on Czech
companies. This stronger focus on customer through new marketing channels and e-
commerce driven by Industry 4.0 and global pandemic will create new challenges in
context of customer protection (Peráček 2022) and needs to be a subject of future research
in context of Industry 4.0 challenges.
Adm. Sci. 2023, 13, 35 11 of 13

Within primary activities we observed correlation in activities focused on automation

and digitalization in link to outbound logistics. In general, however, research results point
to stronger importance of supporting activities for companies in context of copying with
Industry 4.0 challenges that of primary activities.
Furthermore, in context of technology, correlation analysis presents several activities
that companies conduct in link to technological development such as: optimization and
efficiency of processes, generating innovations, introducing new hardware and software
and digitalization, automation. Activities regarding automation and digitalization are
carried out in large to medium extend by 62% of companies in our sample, while 32%
of companies do not carry out these activities at all, or only a little. These results are in
line with digitalization ranking of European countries. One of the possible explanations is
presented by our research findings, by examination of used arguments for digital transfor-
mation. Companies that do not conduct many activities in automation and digitalization
in their company, see significantly less the possible high level of future risks as well as
the inevitable need for constant progress. On the other hand, these companies use signifi-
cantly more arguments that are general, and do not reflect the connection between Industry
4.0 and specific company and their operations. In this context we strongly highlight the
importance of the ability to identify trends, analyze them and respond to them, which
has been linked to stronger and better performance results in companies (Stachová et al.
2019). Furthermore, coping with Industry 4.0 challenges often includes many activities
and is carried out in small to large projects, that are time and cost consuming. Ability
to implement specific technologies or for instance to pass from traditional processes to
business process automation, company needs to use specific innovation management skills
and idea generation processes to find the best possible solution. These activities are in
leading companies carried out often with the support of other entities such combined
business units, research parks and institutions, universities, business partners, supplier or
customers or even competitors. Innovations in technological revolutions now and in history
required lot of new knowledge, experiments and resources. In many cases for domestic
and local companies it is hard to gain all these components without cooperation with
external partners. Likewise, large companies operating in specific environment may use
the local knowledge to better address the specific regional needs of customers or processes.
University-industry collaboration offers such knowledge in many ways from providing
knowledge and up to date information on technological development, common research
and development activities and patents, or support and coaching in implementation pro-
cesses. The need to address Industry 4.0 challenges is not decreasing, but increasing instead.
We observe, that not only technology and processes have change in leading organizations
so far, but this transformation brings new and new approaches to transforming business
models, management practices or organization of work. It is necessary to understand and
capture the ongoing changes and just then to be able to find specific solutions suitable for
the company to survive in this ever-changing market.

6. Limitations and Future Research

In the context of analysis of expected impacts of Industry 4.0, this research focused on
general impact and its level in link to activities conducted by companies. For the purpose of
this research, we have not analyzed in more depth the differences when expected positive
impact or negative impact in each factor. This creates space for future research in context
of Industry 4.0 impact on companies and their activities. In addition, we suggest future
research focus on more in-depth analysis of the importance of supporting activities for
Industry 4.0 transformation. Our research based on Porter´s Value Chain Model enriches
the theory on new approach to applying the model within analysis of company activities
in specific environment and points out to strong impact of Industry 4.0 on supporting
activities mainly through automation and digitalization in these processes. Thus, future
research can follow on with deeper analysis as well as with comparing results in other
Adm. Sci. 2023, 13, 35 12 of 13

countries, namely Industry 4.0 leaders or strong innovators, while Slovakia belongs to
moderate innovators and is not a leading country in Industry 4.0 transformation.

Author Contributions: Conceptualization, L.K.; methodology, L.K.; software, L.K.; validation, L.K.
and N.S.; formal analysis, L.K.; investigation, L.K. and N.S.; resources, L.K. and N.S.; data curation,
L.K.; writing—original draft preparation, L.K. and N.S.; writing—review and editing, L.K. and N.S.;
visualization, L.K.; supervision, L.K. All authors have read and agreed to the published version of
the manuscript.
Funding: This research was funded by Project National Infrastructure for Supporting Technology
Transfer in Slovakia II—NITT SK II, co-financed by the European Regional Development Fund.
Acknowledgments: This research was funded by project National infrastructure for supporting
technology transfer in Slovakia II—NITT SK II, co-financed by the European Regional Development
Fund. Research was supported by project VEGA 1/0792/20 Examination of Changes in Management
of Companies in Slovakia in Connection to Industry 4.0 Transition.
Conflicts of Interest: The authors declare no conflict of interest.

References
Ajayi, Makinde Oluwafemi, and Opeyeolu Timothy Laseinde. 2021. Application of Porter’s Value Chain Model for Construing
Potential Prospects and Lacunas in Industry 4.0 Adoption by 21st Century Manufacturers. In Advances in Manufacturing,
Production Management and Process Control. Cham: Springer. ISBN 978-3-030-80462-6.
Čajka, Peter, and Josef Abrhám. 2019. Regional aspects of V4 countries’ economic development over a membership period of 15 years
in the European union. Slovak Journal of Political Sciences 19: 89–105. [CrossRef]
Dastbaz, Mohammad, and Peter Cochrane. 2019. Industry 4.0 and Engineering for a Sustainable Future. Cham: Springer. ISBN
978-3-030-12953-8.
Dyer, Jeffrey H., Paul C. Godfrey, Robert J. Jensen, and David J. Bryce. 2017. Strategic Management: Concepts and Cases. 2. vyd. Hoboken:
John Wiley and Sons, p. 512. ISBN 978-1-119-41169-7.
Fedushko, Solomiia, Oleg Mastykash, Yuriy Syerov, and Tomas Peracek. 2020. Model of user data analysis complex for the management
of diverse web projects during crises. Applied Sciences 10: 9122. [CrossRef]
Friedrichsen, Mike, and Wolfgang Mühl-Benninghaus. 2013. Handbook of Social Media Management: Value Chain and Business Models in
Changing Media Markets. Berlin/Heidelberg: Springer. ISBN 978-3-642-28897-5.
Hoag, Bruce, and Cary L. Cooper. 2006. Managing Value-Based Organizations. It´s Not What You Think. Cheltenham: Edward Elgar
Publishing Limited, ISBN-13 978-1-84064-981-9.
Ike, Luke. 2017. Strategic Management: Concepts & Practicies. Dartford: Xlibris, p. 310. ISBN 978-1-5245-9758-0.
Li, Yuanqin, Hao Ding, and Ting Li. 2022. Path Research on the Value Chain Reconfiguration of Manufacturing Enterprises under
Digital Transformation—A Case Study of B Company. Frontiers in Psychology 13: 887391. [CrossRef] [PubMed]
Martínez-Olvera, César, and Jaime Mora-Vargas. 2019. A Comprehensive Framework for the Analysis of Industry 4.0 Value Domains.
Sustainability 11: 2960. [CrossRef]
Nagy, Judit, Judit Oláh, Edina Erdei, Domicián Máté, and József Popp. 2018. The Role and Impact of Industry 4.0 and the Internet of
Things on the Business Strategy of the Value Chain—The case of Hungary. Sustainability 10: 3491. [CrossRef]
Peráček, Tomáš. 2022. E-commerce and its limits in the context of the consumer protection: The case of the Slovak Republic. Juridical
Tribune—Tribuna Juridica 12: 35–50. [CrossRef]
Pereira Carvalho, Núbia Gabriela, and Edson Walmir Cazarini. 2020. Industry 4.0—What Is It? In Industry 4.0 Current Status and Future
Trends. London: IntechOpen. ISBN 978-1-83880-086-4.
Ponte, Stefano, Gary Gereffi, and Gale Raj-Reichert. 2019. Global Value Chains. Cheltenham: Edward Elgar Publishing Limited. ISBN
978-1-78811-377-9.
Porter, Michael. 1985. Competitive Advantage: Creating and Sustaining Superior Performance. New York: The Free Press. ISBN 978-1-4165-
9584-7.
Porter, Michael. 1990. Competitive Advantage of Nations: Creating and Sustaining Superior Performance. New York: The Free Press. ISBN
0-684-84147-9.
Porter, Michael, and James E. Heppelmann. 2014. How Smart, Connected Products Are Transforming Competition. Available online:
https://hbr.org/2014/11/how-smart-connected-products-are-transforming-competition (accessed on 12 November 2022).
Pozdnyakova, Ulyana A., Vyacheslav V. Golikov, Irina A. Peters, and Irina A. Morozova. 2019. Genesis of the Revolutionary Transition
to Industry 4.0 in the 21st Century and Overview of Previous Industrial Revolution. In Industry 4.0 Industrial Revolution of the 21st
Century. Cham: Springer. ISBN 978-3-319-94310-7.
Rao, C. Appa, B. Parvathiswara Rao, and K. Sivaramakrishna. 2008. Strategic Management and Business Policy. New Delhi: Excel Books.
ISBN 978-81-7446-668-6.
Ribeiro, R. 2019. Digital Transformation of the Enterprise Value Chains. Lisbon: Global Forum of Intelectual Capital.
Adm. Sci. 2023, 13, 35 13 of 13

Rimarčík, M. 2007. Štatistika pre prax. Vlastné vydanie, 200 s. Available online: http://rimarcik.com (accessed on 7 December 2022).
Romanova, Olga A., and Evgeny Kuzmin. 2021. Industrial Policy: A New Reality in the Context of Digital Transformation of the
Economy. In Digital Transformation in Industry: Trends, Management, Strategies. Cham: Springer. ISBN 978-3-030-73261-5.
Sima, Violeta, Ileana Georgiana Gheorghe, Jonel Subic, and Dumitru Nancu. 2020. Influences of the Industry 4.0 Revolution on the
Human Capital Development and Consumer Behavior: A Systematic Review. Sustainability 12: 4035. [CrossRef]
Stachová, Katarína, Ján Papula, Zdenko Stacho, and Lucia Kohnová. 2019. External Partnerships in Employee Education and
Development as the Key to Facing Industry 4.0 Challenges. Sustainability 11: 345. [CrossRef]
Sukhodolov, Yakov A. 2019. The Nation, Essence, and Peculiarities of Industry 4.0 as a Sphere of Industry. In Industry 4.0 Industrial
Revolution of the 21st Century. Cham: Springer. ISBN 978-3-319-94310-7.
Tittelbachová, Šárka, Lukáč Michal, and Lžičař Petr. 2022. Impact of the COVID-19 pandemic on tourism in the Czech Republic. Terra
Economicus 20: 133–45. [CrossRef]
Weking, Jörg, Maria Stöcker, Marek Kowalkiewicz, Markus Böhm, and Helmut Krcmar. 2020. Leveraging industry 4.0—A business
model pattern framework. International Journal of Production Economics 225: 107588. [CrossRef]

Disclaimer/Publisher’s Note: The statements, opinions and data contained in all publications are solely those of the individual
author(s) and contributor(s) and not of MDPI and/or the editor(s). MDPI and/or the editor(s) disclaim responsibility for any injury to
people or property resulting from any ideas, methods, instructions or products referred to in the content.
Copyright of Administrative Sciences (2076-3387) is the property of MDPI and its content
may not be copied or emailed to multiple sites or posted to a listserv without the copyright
holder's express written permission. However, users may print, download, or email articles for
individual use.