Examining the Feasibilities of Industry 4.0 for the Hospitality Sector with the Lens of Management Practice.

Abstract

Industry 4.0 and its impact in the manufacturing sector are well documented. However, the service sector is understudied, and it is also facing the challenges of mass customization, digital enhancement, smart work environment, and efficient supply chain. The aim of this study is to fill this research gap by exploring the issues of Industry 4.0 in the service sector, with cases in the hospitality industry. All the challenges of Industry 4.0 require continuous innovation and learning, which is dependent on people and the enterprise’s capabilities. Appropriate management approaches can play a vital role in the development of dynamic capabilities, and an effective learning and innovation environment. This paper proposes a framework of management practices which can promote the environment of innovation and learning in an organization, and hence facilitate business to match the pace of Industry 4.0 by facilitating technology acceptance e.g., digital enhancements and implementation of cyber physical systems (CPS). This study integrates the literature with logical beliefs to suggest the appropriate management practices for Industry 4.0. It represents one of the initial attempts to draw research attention towards the important role of management practices in Industry 4.0, as most of the recent studies have been restricted to the technological aspects. Semi-structured interviews of hospitality employees are conducted to explore the management practices suitable for meeting the challenges of Industry 4.0, specifically for informing the service sector.