Need Assessment for Implementation of Digital Transformation Practices Through the Capacity Building

This study systematically identifies and prioritizes barriers to Industry 4.0 adoption in manufacturing within a developing economy. We used a mixed-methods approach—combining a systematic literature review and PLS-SEM. The research synthesizes 45 critical factors across nine I4.0 pillars, mapped to five sustainability dimensions. Data from 160 professionals show the technological dimension (β = 0.218) to be the most significant broad barrier. Analysis of high outer loadings (≥0.80) highlights key specific barriers: IT infrastructure gaps and poor technological leverage; a lack of organizational and digital readiness; cultural fragmentation and weak knowledge systems; high implementation and cyber threat costs; and low customization demands with absent data standards. The study proposes a maturity model and strategic framework to help policymakers address these barriers and promote sustainable digital transformation.