From intention to digital transformation: how strategy, perception and capabilities shape Industry 4.0 adoption in emerging-economy SMEs

The adoption of Industry 4.0 technologies remains highly uneven among small and medium-sized enterprises (SMEs), particularly in emerging economies where resource constraints and institutional weaknesses hinder digital transformation. This study examines how strategic orientation influences SMEs’ predisposition to adopt Industry 4.0, emphasising the mediating role of perceived barriers and the moderating effects of employees’ technological knowledge and human capabilities training. Drawing on the dynamic capabilities perspective, we propose and test a double-moderated mediation model using survey data from 136 Mexican SMEs. Results from conditional process analysis reveal that strategic orientation increases the perception of technological, financial and institutional barriers, which in turn reduces digital predisposition. However, this indirect effect is significantly attenuated in firms with stronger technological knowledge and human capabilities, which help them reinterpret constraints as manageable challenges. These findings highlight that digital readiness in emerging-economy SMEs depends on strategic intent as well as on the configuration of internal capabilities that buffer perceived risks. The results have important implications for theory, managerial practice and public policy, underscoring the need to complement external support initiatives with strategies that strengthen firms’ internal technological and human capabilities.