Assessing the Early Impact of Industry 4.0 Technologies on the Activity, Efficiency, and Profitability of Croatian Micro-, Small-, and Medium-Sized Enterprises

This study examines the early impact of Industry 4.0 (I4.0) implementation on the financial performance of Croatian companies, focusing on indicators of profitability, efficiency, and activity. The research investigates whether firms adopting I4.0 technologies achieve superior results compared to traditional companies. A unique feature of this study is its integration of primary data—collected via an online survey of Croatian enterprises—with secondary data from publicly available financial reports. Statistical methods, including Analysis of Variance (ANOVA) and linear regression, were employed to test the hypotheses. The results show that I4.0 adopters perform significantly better in terms of net profit margin, return on assets, business efficiency, and supplier bonding days, while no significant difference was found in days sales outstanding. This paper contributes to the literature by offering one of the first empirical analyses of early-stage I4.0 adoption in the context of a transition economy, using firm-level financial data. The findings provide valuable insights for managers, policymakers, and investors aiming to understand the tangible business benefits of digital transformation. The results also highlight the importance of supporting I4.0 adoption strategies to enhance competitiveness and recovery in post-pandemic economic conditions.