THE BUSINESS ECOSYSTEM FOR INDUSTRIAL REVOLUTION 4.0: A GAME THEORY APPROACH

Abstract

This study aims to examine the scenarios for better forecasting, condition monitoring, and respond to the unintended or unanticipated consequences of using the Industry 4.0. The game theory is adopted to understand the potential results from the intention to gain benefit from the Industry 4.0. The article argues that coordination failures among the players may spring from lack of confidence. The contribution of SMEs, consumers, and government in the industry 4.0, performance of each economic player plays a pivotal role, but none alone is sufficient for the sustainability performance of Industry 4.0 but no single player intents to take a risk. The narrow-minded “win-lose†attitudes among SMEs, consumers and government may occur in the Industry 4.0. The Industry may get support from the customers, if the SMEs creates value for consumers and provides tax to the government.
Keywords: Industry 4.0; small and medium enterprises; game theory