Managerial decision-making in the era of Industry 4.0

  • 1 University of Economics in Bratislava, Bratislava, Slovak Republic


Fourth industrial revolution also known as Industry 4.0, is a concept that significantly influences the entire operation of businesses and management. It necessitates changes in individual managerial functions, not excluding decision-making. In management theory, managerial decision making is defined in terms of content through descriptive and normative theories. The aim of the presented article is to examine the normative and descriptive understanding of decision – making in the context of adaptation of individual approaches to changes in the business environment – especially adaptation to technological progress related to the fourth industrial revolution. An overrated aspect of decision-making in this era is its rational side due to the rapid development of computer technology and the availability of rich software support. On the other hand, there is a tendency to bring to the decision-making process the involvement of all involved, collective judgment, the ability to learn from the development of the situation or openness to feedback. The understanding of the decision-making process thus moves from its traditional concept to a new understanding, which includes the above-mentioned factors. Development leads to their integration in the form of a direction that does not yet have a name but means a synergy of rational decision-making and critical thinking and reasoning in the context of descriptive theories. The overall optimal result of the decision-making process is influenced by objective criteria through a rational-normative model, environmental characteristics and subjective influences, personality, and cognitive complexity of the manager.



  1. ] L. Ardito, A.M. Petruzzelli, U. Panniello, A.C. Garavelli Towards Industry 4.0: mapping digital technologies for supply chain management-marketing integration. Bus. Process Manag. J., 25 (2019)
  2. S.-V. Buer, J.O. Strandhagen, F.T. Chan. The link between Industry 4.0 and lean manufacturing: mapping current research and establishing a research agenda. Int. J. Prod. Res., 56 (2018)
  3. A. Schroeder, A. Ziaee Bigdeli, C. Galera Zarcos, T. Baines Capturing the benefits of industry 4.0: a business network perspective. Prod. Plan. Control (2019)
  4. L. Wang, M. Torngren, M. Onori. Current status and advancement of cyber-physical systems in manufacturing. J. Manuf. Syst., 37 (2015)
  5. S. Jeschke, C. Brecher, T. Meisen, D. Ozdemit, T. Eschert. Industrial Internet of Things and Cyber Manufacturing Systems. Industrial Internet of Things (2017)
  6. U. Dombrowski, T. Wagner. Mental strain as field of action in the 4th industrial revolution. Proced CIRP., 17 (2014)
  7. M. Hermann, T. Pentek, B. Otto. Design principles for Industrie 4.0 scenarios. 49th Hawaii international conference on system sciences (IEEE) (2016).
  8. D. Spath, O. Ganschar, S. Gerlach, M. Hämmerle, T. Krause, S. Schlund. Produktionsarbeit der Zukunft - Industrie 4.0. Stuttgart: Fraunhofer Verlag (2013)
  9. W. Dorst, C. Glohr, T. Hahn, F. Knafla, U. Loewen, R. Rosen. Umsetzungsstrategie Industrie 4.0 - Ergebnisbericht der Plattform Industrie 4.0 (2015)
  10. Z. Rajnai, I. Kocsis. Assessing industry 4.0 readiness of enterprises. SAMI (2018)
  11. A. Schumacher, S. Erol, W. Sihn. A maturity model for assessing industry 4.0 readiness and maturity of manufacturing enterprises. Proced. CIRP, 52 (2016)
  12. H. Kagermann, W.D. Lukas, W. Wahlster. Industrie 4.0: Mit dem internet der dinge auf dem weg zur 4. industriellen revolution VDI Nachrichten, 13 (2011)
  13. O. Sénéchal, D. Trentesaux. A framework to help decision makers to be environmentally aware during the maintenance of cyber physical systems Environ Impact. Assess Rev, 77 (2019)
  14. L.C. Siafara, H.A. Kholerdi, A. Bratukhin, N. Taherinejad, A. Wendt, A. Jantsch, et al. SAMBA: a self-aware health monitoring architecture for distributed industrial systems. Proceedings IECON 2017-43rd annual conference of the IEEE industrial electronics society (2017)
  15. B. Mohamed, S. Ismail, D. Abdullah. Industrial Revolution (IR4.0) Impact on Management. ICCETIM(2019)
  16. Y. Lu. Industry 4.0: a survey on technologies, applications, and open research issues. J. Indust. Infor. Integr., 6 (2016)
  17. S. Zanero. Cyber-physical systems. Comp., 50 (2017)
  18. H. Kagermann, W. Wahlster, J. Helbig. Recommendations for Implementing the Strategic Initiative INDUSTRIE 4.0. Final report of the Industrie 4.0 WG. (2013)
  19. R. Rafael, A.J. Shirley, A. Liveris Report to the President Accelerating U.S. Advanced Manufacturing The President’s Council of Advisors Sci. Technol., Washington, DC, USA, Tech. Rep (2014)
  20. W. Wahlster. SemProM: Foundations of Semantic Product Memories for the Internet of Things. Springer Science & Business Media (2013)
  21. J. Zhou. Intelligent Mannfacturing-main Direction of Made in China 2025. China Mechanical Engineering, 26 (2017)
  22. Conseil National de L’industrie. The New Face of Industry in France (2013)
  23. T. Jeck . Slovenská ekonomika a štvrtá priemyselná revolúcia_ factory a predpoklady (2017)
  24. IBERDROLA. Industry 4.0: which technologies will mark the Fourth Industrial Revolution? (2022)
  25. H. Liang, C. Yang, R. Zhang, C. Cai. Bounded rationality, anchoring-and-adjustment sentiment, and asset pricing. The North American Journal of Economics and Finance, 40 (2017)
  26. E. Shellshear, R. Berlin, J. S. Carlson. Maximizing smart factory systems by incrementally updating point clouds. IEEE Computer Graphics and Applications, 35 (2015)
  27. S. Heng. Industry 4.0: upgrad ing of Germany’s industrial capabilities on the horizon (2014)
  28. J. Bischoff, C. Taphorn, D. Wolter. Erschließen der Potenziale der Anwendung von Industrie 4.0 im Mittelstand. Mülheim an der Ruhr: agiplan (2015)
  29. S. Turber, J. Vom Brocke, O. Gassmann, E. Fleisch. Designing business models in the era of internet of things. In International Conference on Design Science Research in Information Systems (2014)
  30. P. Andries, K. Debackere. Business model innovation: Propositions on the appropriateness of different learning approaches. Creativity and Innovation Management, 22 (2013)
  31. B. Marr. What everyone must know about industry 4.0. Forbes Tech. (2016)
  32. F. Rosin, P. Forget, S. Lamouri, R. Pellerin. Industry 4.0 and decision making. Conference: JCM 2020 (2020)
  33. H. W. Lin, S. V. Nagalingam, S. S. Kuik, T. Murata. Design of a global decision support system for a manufacturing SME: Towards participating in collaborative manufacturing. International Journal of Production Economics, 1 (2012)
  34. D. J. Power, D. Cyphert, R. M. Roth. Analytics, bias, and evidence: the quest for rational decision making. Journal of Decision Systems, 28 (2019)
  35. H. Ekbia, M. Mattioli, I. Kouper, G. Arave, A. Ghazinejad, T. Bowman, … C. R. Sugimoto. Big data, bigger dilemmas: A critical review. Journal of the Association for Information Science and Technology, 8 (2015)
  36. R. Kitchin. Big Data, new epistemologies and paradigm shifts. Big Data & Society, 1 (2014)
  37. D. Boyd, K. Crawford. Critical questions for big data: Provocations for a cultural, technological, and scholarly phenomenon. Information, Communication & Society, 5 (2012)
  38. M. Gregg. Inside the data spectacle. Television & New Media, 1 (2015)
  39. L. F. Barrett. How emotions are made: The secret life of the brain. Houghton Mifflin Harcourt (2017)
  40. M. J. Donate, J. D. S. de Pablo. The role of knowledge-oriented leadership in knowledge management practices and 80 innovation. Journal of Business Research, 68 (2015)
  41. B. Oberer, A. Erkollar. Leadership 4.0: Digital leaders in the age of industry 4.0. International Journal of Organizational Leadership (2018)
  42. K. Mehtab, A. Rehman, S. Ishfaq, R. A. Jamil. Virtual Leadership: A Review Paper. Mediterranean Journal of Social Sciences, 8 (2017)

Article full text

Download PDF