Economies of Scale and Network Economies in Industry 4.0

Abstract

This paper analyses the role of cost differentials in the fourth industrial revolution. It uses a literature review in order to identify origins, definitions, enabling technologies and changes in company productivity. Research results show how certain Industry 4.0 enabling technologies help obtain better economic results in mass production and others that support new production models in mass production: mass customization and mass personalization. This paper is of a theoretical nature and identifies certain reflections concerning Industry 4.0’s role in managerial literature by providing interesting lines to be developed in future directions of research.

Keywords

• industry 4.0
• fourth industrial revolution
• enabling technologies
• economies of scale
• network economies
• global markets