sustainability Article The Effects of Smart Factory Operational Strategies and System Management on the Innovative Performance of Small- and Medium-Sized Manufacturing Firms Rok Lee Department of LINC Plus Project Organization, Gyeongsang National University, Jinju 52828, Korea;
[email protected]; Tel.: +82-10-6314-4004 Abstract: This study aims to determine the effects of smart factory system management and opera- tional strategies on the innovative performance of small- and medium-sized manufacturing firms. To this end, we administered an empirical survey to 222 hands-on workers who operate smart facto- ries in small- and medium-sized Korean firms. The collected data were analyzed using structural equation modeling and the results showed that the enterprise resource planning (ERP), quality management, ethical management, and productivity management systems had positive effects on innovative performance. The effect of operational strategies on innovative performance was not verified. Consequently, small- and medium-sized firms should focus on establishing ERP systems, which lead to system establishment, standardization of work processes, CEO support and attention, and increase user recognition levels for raising innovative performance. Keywords: smart factory; strategy; innovation performance; Korea Citation: Lee, R. The Effects of Smart Factory Operational Strategies and System Management on the 1. Introduction Innovative Performance of Small- and Workers in smart factory environments monitor the production line and, based on Medium-Sized Manufacturing Firms. recorded data, perform operational management tailored to the productivity and efficiency Sustainability 2021, 13, 3087. of manufacturing the best products with the least resources. In particular, the introduction https://doi.org/10.3390/su13063087 of information and communications technology (ICT) allows for quick and accurate sup- port, and the central system of the smart factory saves time and expenses from product Academic Editor: Roberta Costa distribution to product release.