A Review on the Integration of Industry 4.0 Technologies in Management Accounting: Exploring Challenges and Opportunities for Enhancing Business Performance

Abstract

This literature review critically delves into the symbiotic relationship between Industry 4.0's technologies and management accounting, accentuating challenges and opportunities in the dual facets of pursuing enhanced business performance in the Fourth Industrial Revolution era. The key research problem revolves around effectiveness in harnessing the technologies of Industry 4.0 to management accounting. The review takes the shape of introducing readers through a comprehensive overview of the technologies of Industry 4.0, presenting theoretical framework and methodological rigour to ensure integrity. The core section contains the findings and discussion, for, as emerging challenges of adaptation and privacy are reviewed with some carefulness and some exciting new possibilities for automation, for data-driven decision-making, and innovation in business models. The paths of collaboration and strategic alignment then arise as conduits to efficiency and growth and so take their place in the unsurpassed record of business performance. Free writing in terms of business performance implications, the manuscript defends that exploring challenges and opportunities serve as a platform for attaining financial gains. And these are just not claims but are backed with real-time case discussions and application to authenticate the context. This concludes the review synthesising points of contentions and pointing out knowledge gaps by presenting a robust research agenda for any future scholar setting stage going forward in this dynamic field. Basically, this manuscript does not just synthesize the intricate intersection of Industry 4.0 and management accounting but accentuates the paramount significance in such interfaces. It leads the organizations to a promising future with improved business performance among the landscape of Industry 4.0 and management accounting with practical insights and recommendations.

Keywords: Industry 4.0, Management Accounting, Fourth Industrial Revolution, Internet of Things (IoT), Artificial Intelligence (AI), Automation, Data-driven Decision Making, Business Performance,  and Technology Integration

DOI: 10.7176/RJFA/15-6-01

Publication date: June 30th 2024