Industry 4.0. Transformation Challenge in Light of Dynamic Capabilities

Abstract

The manufacturing industry is facing drastic changes brought about by the driving forces of the so-called Industry 4.0 Transformation. The firms that want to sustain their competitive advantage have to transform their resource bases and manufacturing capabilities in a cost efficient way. The companies have to reinvent their business logic by combining their strengths in product design and manufacturing together with existing, or to-be-created new capabilities in evolving digital ecosystems. This article scrutinizes the tools that modern strategic management research can offer to overcome the challenges of organizational renewal. After analyzing different approaches developed in modern strategy research we focus on the dynamic capability view and especially on its micro-foundations and usability in the context of digitalized platform-based ecosystems will be studied. Finally, we will offer some managerial implications.