The Impact of Industry 4.0 on Export Market Orientation, Market Diversification, and Export Performance

Abstract

Background and Purpose: Existing literature on the Industry 4.0 concept does not provide a clear empirical verification if and how the implementation of Industry 4.0 impacts export market orientation, market diversification, and export performance of firms. The purpose of this paper is to provide a framework on how firms can increase their export performance by knowing the impact of Industry 4.0 on firms export activities. Methodology: The analysis is based on an examination of 81 Slovenian export firms, with the majority active in the processing industry in which the export of products and services represents a more than 20% share in the total revenue of the firm. Factor analysis and multiple regression were used to process the collected data. Results: The analysis results reveal that firms that invest in advanced technologies and realize digital transformation are better prepared to compete internationally and achieve better export performance. Conclusion: Our study showed the positive link between implementation of Industry 4.0 and export activities of firms and confirmed that implementation of Industry 4.0 leads to many changes in the mindset and operation of Slovenian firms and actively reflects in their export results. The research findings may serve as an important guide for managers in the optimal planning and management of export marketing and business activities. The study thus provides a foundation for the growing research on the relationship between Industry 4.0 and export business activities of firms. Keywords: Industry 4.0, Export market orientation, Market diversification, Export performance.