Industry 4.0 Technologies as a Moderator of the Relationship Between Critical Success Factors and Small and Medium Enterprises Survival
DOI:
https://doi.org/10.65687/bjbs.v2i1.2Keywords:
technology 4.0, critical success factors, SME survival, moderation analysis, Nigeria, digital transformationAbstract
Small and medium enterprises (SMEs) constitute 96% of Nigerian businesses yet face an 80% failure rate within five years. This study investigates how Technology 4.0 adoption moderates the relationship between critical success factors (CSFs) and SME survival—a critical research gap addressed through quantitative analysis of 400 SMEs across Nigeria's six geopolitical zones. Drawing on integrated theoretical frameworks (Resource-Based View, Institutional Theory, and Technology-Organization-Environment), hierarchical moderated regression reveals that Technology 4.0 significantly amplifies CSF effectiveness (β = .18, p < .001; ΔR² = .08). Financial resources, entrepreneurial orientation, and marketing capabilities rank as the most critical factors among 25 identified CSFs. Crucially, a Johnson-Neyman threshold (Technology 4.0 > 2.1) establishes the minimum digital maturity required for significant amplification effects. Sectoral analysis exposes substantial variation: manufacturing exhibits the strongest moderation (β = .25, p < .001), while agriculture shows non-significant effects, highlighting contextual digital disparities. The findings advance an amplification model wherein digital adoption enhances rather than substitutes traditional success determinants, with enterprise capabilities demonstrating the strongest moderation (β = .20). This study provides empirical evidence for policymakers, SME owners, and financial institutions to design targeted interventions bridging digital adoption gaps, ultimately strengthening SME resilience in emerging economies.
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