Strategic Prioritization of Industry 4.0 Adoption in Indonesian Manufacturing SMEs: A Best-Worst Method Analysis

The adoption of Industry 4.0 technologies is crucial for enhancing the competitiveness of Indonesia's manufacturing SMEs. This study identifies the key criteria influencing this adoption, emphasizing competitive advantage and innovation as the most critical factors. Using the Best-Worst Method (BWM), the study prioritizes various industry sectors, finding that the electronics and machinery sectors are the most ready for Industry 4.0 integration, driven by their high innovation capabilities and workforce adaptability. However, other sectors like food and beverage and textiles, though lower in priority, still present significant potential for production efficiency and sustainability improvements. The study also highlights limitations such as the narrow sectoral focus and the use of a single evaluation method, which may not fully capture the complexity of adoption challenges. Future research should expand to other sectors and develop more comprehensive models that integrate qualitative and quantitative approaches. These findings offer strategic recommendations for stakeholders to support the digital transformation of SMEs in Indonesia.