Sociology

Business

Qualitative research

Relocation

Social science

Epistemology

Empirical research

Marketing

Philosophy

Manufacturing

Political science

Affect (linguistics)

Programming language

Originality

Respondent

Computer science

Linguistics

Advanced manufacturing

Industrial organization

Journal of Manufacturing Technology Management

Purpose The purpose of this paper is to advance the understanding of how Industry 4.0 related technologies affect the relocation of manufacturing abroad by small and medium-sized enterprises. Design/methodology/approach This paper contains an empirical analysis of how Industry 4.0 related technologies affect the cost-driven relocation of manufacturing abroad based on 191 comprehensive and full responses to a questionnaire survey distributed in 2018 among small- and medium-sized Danish manufacturers. Findings This paper builds upon data, which reveals that companies' pursuit of cost-focused competitive strategies is positively correlated with relocating manufacturing abroad. However, the data also shows that the more Industry 4.0-ready decision-makers are, the less cost-focused strategy drives manufacturing abroad. Furthermore, perceived barriers to Industry 4.0 related technologies promote the cost-driven relocation of manufacturing abroad whereas perceived drivers decrease this phenomenon. Research limitations/implications This paper is based on the answers given by a single respondent from each company and only on Danish respondents. Practical implications The results indicate a need to invest resources to obtain a better knowledge of Industry 4.0 related technologies when used in processes involved in decisions about where to locate manufacturing. Originality/value This paper contains new, empirically founded information about how Industry 4.0 related technologies affect the cost-driven relocation of manufacturing abroad from the perspective of small- and medium-sized manufacturers.

Cost-driven motives to relocate manufacturing abroad among small- and medium-sized manufacturers