Identifying the Different Categories of IR4.0 Technology Usage Clusters Amongst Brunei Darussalam's MSMEs Using K-Means Approach

Identifying the Different Categories of IR4.0 Technology Usage Clusters Amongst Brunei Darussalam's MSMEs Using K-Means Approach

DOI: 10.4018/978-1-6684-8145-5.ch004
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Abstract

Technologies for the Fourth Industrial Revolution (IR 4.0) are widespread due to their significant advantages for various industries, including productivity performance, efficiency, and adaptability. Brunei Darussalam is a developing country that has recently considered the significance of IR 4.0. The maturity level on technology adoption for IR4.0 technologies are crucial to determine its operation performance and effectiveness. Data is collected from 40 micro, small, medium enterprises (MSMEs) from different industries of Brunei Darussalam. The model is from K-means clustering that can show the level of technology adoption in different sectors and sizes of businesses which in turn will help to determine the impact of technology on the performance of the firm. This study is to compare the difference on IR4.0 technology adoption between developed, developing countries, and Brunei Darussalam and their current interest and investment level for future adoption.
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Background

At this present, Brunei Darussalam is moving towards IR4.0, the nation is focusing on few important aspects in order to reach the goal to be adapted with IR4.0 which are by identifying the real and local needs, having a strategic planning, more involvement of stakeholders, initiating government drive, more operators and industry players, build infrastructure and spectrum readiness, plan deployment in phases (James Kon, 2019). At this point, there have been different models to assess maturity levels and industry readiness in adopting IR4.0 technologies. Models such as IMPULS, Industry 4.0 Readiness Assesment Tools, Singapore Smart Industry Readiness Index, Industry 4.0 Maturity Model, Industry 4.0-MM, RAMI 4.0, Schumacher et al., Rojko, Kichtblau et al. and Agca et.al and Singapore Economic Development Board model are mainly used to assess the readiness of manufacturing companies. But however, there is limitation to those models that focuses on manufacturing businesses only. Study on IR4.0 on business models remains a least explored topic (Arnold, Kiel, and Voigt 2016). Especially when empirical research on the business models in the context of the Industrial Internet of Things have mostly unnoticed what is needed for the MSMEs (Arnold et al. 2016; Müller et al. 2018; Müller, Buliga, and Voigt 2021).

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