The Impact of Outsourcing and Innovation on Industry 4.0

Abstract

In this study, we examined the impact of outsourcing and innovation activities of industry 4.0, focusing on the Turkish Fortune 500 list of companies. The list contains the largest companies in Turkey within the manufacturing, trade, and service industries. We obtained the data from the innovation-outsourcing scale adapted by Yanmaz Arpacı and Gülel (Yanmaz Arpacı Ö, Gülel FE (2019) Development of innovation-outsourcing scale in enterprises. In: Paper presented at 3rd international EUREFE congress. Adnan Menderes University, Aydın). This scale consists of four dimensions: the importance of outsourcing, the results of outsourcing, satisfaction in outsourcing, and innovation. We analyzed the data by using binary logistic and multinomial logistic regression methods. In the first model, the dependent variable is the status of having a research and development department in the company. In the second model, the dependent variable is taken as the company's state to switch to industry 4.0. As a result, we found that the importance of outsourcing and innovation is statistically significant in being research and development department. It must be noted throughout this research that the results of outsourcing, satisfaction in outsourcing, and innovation factors are statistically significant for industries switching to Industry 4.0. © 2022, The Author(s), under exclusive license to Springer Nature Switzerland AG.