Financing manufacturers for investing in Industry 4.0 technologies: internal financing vs. External financing

Majid Azadi, Zohreh Moghaddas, Reza Farzipoor Saen*, Farookh Khadeer Hussain

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

Abstract

Supply chain finance (SCF) as a crucial approach plays a key role in improving commitment, trust, financial flows, and profitability in a supply chain (SC). Many industrial organisations finance their SC through two resources: internal financing (buyer) and external financing (bank). The main objective of this paper is to develop an advanced data envelopment analysis (DEA) model for measuring the sustainability of financing resources of Industry 4.0 technologies. To do so, for the first time a non-radial DEA model in the presence of both zero inputs and ratio data is proposed. In this paper, the sustainability factors, including economic, environmental, and social factors are incorporated into the proposed approach. The developed DEA model, for the first time, is applied in SCF. The results show the most sustainable financial resource for investing in Industry 4.0 technologies. Also, the inputs and outputs’ inefficiencies are determined.

Original languageEnglish
Number of pages14
JournalInternational Journal of Production Research
Early online date1 Jun 2021
DOIs
Publication statusE-pub ahead of print - 1 Jun 2021

Keywords

  • data envelopment analysis (DEA)
  • Industry 4.0
  • ratio data
  • supply chain finance (SCF)
  • sustainability
  • zero data

Fingerprint

Dive into the research topics of 'Financing manufacturers for investing in Industry 4.0 technologies: internal financing vs. External financing'. Together they form a unique fingerprint.

Cite this