The Interrelationship Between Industry 4.0 and Servitization in Manufacturing SMEs: The Case of the Basque Country

The implementation of Industry 4.0 brings about potential gains for firms in terms of efficiency, productivity, and the generation of new sources of income. A process that offers considerable opportunities for revenue generation is what is known as servitization. Both features (Industry 4.0 and servitization) are complementary and have critical implications for territories as regards technological upgrading and the diversification of their economy. Here, the extent to which the managerial conditions for transitioning towards Industry 4.0 and, specifically, for adopting digital technologies can influence small manufacturers’ attitudes towards servitization is examined. The empirical study is carried out using both a quantitative approach based on an ordered logit model and a qualitative analysis of 174 manufacturing SMEs in the province of Gipuzkoa (Basque Country, Spain). Preliminary results show that firms’ awareness of external and internal conditions for Industry 4.0 can be used as a lever of servitization. Furthermore, firms with a higher level of digitalization and involved in activities with a medium to a high level of technology intensity were found to have a more favourable attitude towards servitization.