The Usage Needs and Adoption Intention of Manufacturing Big Data Technology in Small and Medium-sized Manufacturing Companies

Considerable attention has been paid to smart manufacturing which utilizes manufacturing big data technology. Previous studies on the utilization of manufacturing big data have mainly focused on large corporations or conglomerates. For example, they can quickly develop vaccine through big data or successfully use big data in predicting the situation in which the parts of their product may experience breakdown. However, the small and medium-sized manufacturing companies(SMMCs) are facing difficulties in realizing and predicting their need for utilizing manufacturing big data technology. It is difficult to implement technology of which the usage needs are unclear. For this reason, only 25% of firms are reported to utilize the big data technology. The purpose of this paper is to identify the underlying needs for manufacturing big data in the context of SMMCs and to assess the extent to which those needs are related to the intention to adopt the manufacturing big data technology. Additionally, this study is designed to identify which companies have higher level of usage needs of the manufacturing big data technology This study comprehensively reviewed previous literature and conducted in-depth interviews with three domestic manufacturing firms in order to understand potential usage needs of SMMCs for the manufacturing big data technology. This study developed the following three big dimensions of manufacturing big data usage need based on the comprehensive review of literature and interview - (1) traditional production needs(cost, quality, flexibility, delivery), (2) social responsibility needs(environmental protection and safety), and (3) customer service-oriented new business development needs. Also, this study suggested the following two driving factors positively influencing the needs - (1) competition and (2) information technology capabilities. This study developed a research model that presents two driving factors → three dimensions of usage needs of manufacturing big data → adoption intention of manufacturing big data technology. Further, this study conducted a survey with 200 SMMCs in order to empirically test the validity of the research model. The empirical test results were summarized as follows. First, the significant usage needs of small and medium-sized manufacturing companies for the manufacturing big data technology include (i) the need to improve production performances in terms of cost, quality, flexibility, and delivery, and (ii) the need to improve social responsibility performances in the areas of environmental protection and safety. These needs were found to be significantly correlated with the intention of SMMCs to adopt the manufacturing big data technology. However, SMMCs do not want to use manufacturing big data to develop a customer service-oriented new business model. Second, competition was correlated with the needs to utilize manufacturing big data to improve both production and social responsibility performances in a positive manner. Third, as in the case of competition, SMMCs with higher level of IT capabilities are likely to have stronger need to use manufacturing big data to increase their production and social responsibility performances. This study has following practical implications. First, the results of this study indicate that the intention of the SMMCs to adopt manufacturing big data technology are related to their needs to improve the performances in traditional production areas and social responsibility areas. These are the perceived purposes of the small and medium-sized companies to introduce the manufacturing big data technology. Therefore, Korean government research institutes or technical consulting firms have to develop appropriate manufacturing big data technologies to meet these purposes. For example, as small and medium-sized manufacturing companies do not introduce manufacturing big data technologies to develop a new business model that is customer service-oriented, the manufacturing big data technology platform must not be overdesigned. Second, this study suggests competition and IT capabilities as the driving factors influencing the needs for utilizing manufacturing big data. Recently, Korean government or Korean government agencies have been trying to promote the widespread adoption of the manufacturing big data technology. Further, they currently carry out policies for selecting companies that are in need of technology support of the manufacturing big data technology. When choosing the companies for such a support, they might prefer to selecting the small and medium-sized manufacturing companies which have the high level of IT capabilities and are faced with fierce competition.