Key drivers and barriers of industry 4.0 for sustainable practices in small and medium-sized enterprises

As with other industrial revolutions, Industry 4.0 also raises fundamental questions about its environmental, economic, and social sustainability. Among the various types of companies, small and medium-sized enterprises (SMEs) which represent 99.8 % of all EU businesses, contribute 52.4 % of value added play a crucial role in sustainability and have characteristics that distinguish them from large companies and make their market behaviour different. It is estimated that SMEs are responsible for approximately 70 % of global pollution. However, SMEs are rarely researched, creating a critical knowledge gap. Therefore, the aim of this work is to investigate the relationship between Industry 4.0, sustainability, and small and medium-sized enterprises. To this end, a framework is first provided on the subject and then a systematic literature review is presented, which aims to understand the dynamics between the three themes, using 85 articles obtained from the Scopus and Web of Science databases. Our findings reveal the advantages and disadvantages of Industry 4.0 for the sustainability of small and medium-sized enterprises with 50 advantages across environmental, economic, and social dimensions and 10 disadvantages identified, though quantitative validation remains limited. Finally, we identify the key drivers and barriers of Industry 4.0 for sustainability in SMEs i.e., 41 key drivers and 24 barriers categorized into nine groups including technological, financial, organizational, and policy factors. Many of the barriers found are transversal to other areas. This study contributes to theory and practice by providing a comprehensive mapping of the current research landscape and offering actionable insights for both SME managers implementing digital technologies and policymakers developing support frameworks.