A Theoretical Overview of The Digitalization of Industrial Production
DOI:
https://doi.org/10.31150/ajebm.v8i4.3473Keywords:
digitalization, industrial production, industry 4.0, smart manufacturing, automation, cyber-physical systemsAbstract
The industrial sector is undergoing a profound transformation driven by the rapid integration of digital technologies, collectively referred to as Industry 4.0. This shift represents a convergence of information and operational technologies that enable intelligent, interconnected, and autonomous production systems. Although there is increasing practical and academic interest in digitalization, existing literature is fragmented, often limited to case studies or technical applications, lacking a coherent theoretical framework that links digital transformation to systemic organizational change. There is a need for an integrative theoretical review that consolidates multidisciplinary perspectives and identifies key drivers, challenges, and models relevant to industrial digitalization. This study aims to synthesize theoretical insights on industrial digitalization through a structured literature review, identifying foundational concepts, frameworks, and technological components shaping modern manufacturing. The analysis highlights five core dimensions: technological integration, smart manufacturing, organizational transformation, data-driven decision-making, and associated challenges. It applies Sociotechnical Systems Theory, Systems Integration Theory, and Innovation Diffusion Theory to interpret how digitalization reconfigures production environments. Key technologies such as IoT, AI, cloud computing, CPS, and big data analytics are examined for their impact. This review provides a holistic, theory-driven model that bridges technological evolution and socio-organizational transformation, addressing a critical gap in existing research. The findings inform both academic research and strategic industrial planning, offering a foundation for future empirical studies and guiding policymakers, managers, and educators in shaping adaptive, resilient, and human-centric digital ecosystems.
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