Old problems in a new context – the Industry 4.0 readiness of automotive SMEs

Purpose Existing Industry 4.0 readiness (I4.0) models combine readiness and maturity dimensions, although they are conceptually different. This limits their capacity to evaluate readiness, leading to a superficial assessment, which can encourage small and medium-sized enterprises (SMEs) to initiate projects even if they are not yet ready. This early involvement may explain why they struggle often. The paper proposes a new model for SMEs to overcome this problem. Design/methodology/approach This study conducts a two-phase abductive content analysis of an interview corpus of automotive experts by combining several analytical techniques. This study provides novel insights into how topic modelling can contribute to this theory. Findings The proposed model comprises two often-siloed capabilities: process and IT management. By combining existing conceptualisations and operationalisations, reference models for both capabilities were developed and validated in the context of this research. Thus, the model is fully specified and ready for empirical application. Originality/value The maturity of complex process management capabilities is an elementary prerequisite for digitalisation. However, no previous studies highlight this in the context of I4.0 readiness. This was taken for granted, although even traditional digitalisation projects often fail because of their low level of development. This study shows that this presumption does not hold, even for SMEs in the highly developed automotive industry. Although the decisive role of process capability in basic digitalisation is not new, putting it into the context of I4.0 readiness has both theoretical and practical value.