The Environmental Impact of Advanced Manufacturing Technologies: Examples from Hungary, Andrea Szalavetz (IWE, Hungary)

The purpose of  the paper  is  to demonstrate  the beneficial  impact of advanced manufacturing technologies (AMT) on firms’ environmental performance. Drawing on interviews conducted with 16 Hungarian manufacturing subsidiaries on their experience with AMT, we find three functional areas, where industry 4.0 solutions can not only enhance operational excellence and cost-efficiency, but  they  can  also  improve  eco-efficiency,  but  they  can  also  improve  eco-efficiency,  namely  in the field of quality management (through smart production control, data analytics and predictive modelling solutions); process optimization (through capacity planning and production scheduling solutions);  and  product  and  process  engineering  (through  advanced  virtual  technologies). We also  find  that AMT adoption  facilitated subsidiary upgrading along various dimensions. The main managerial implication is that subsidiaries need to be proactive, and emphasize also the benefits stemming from energy and resource efficiency improvement when lobbying for investment in AMT.
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