Upgrading Pathways of Intelligent Manufacturing in China: Transitioning across Technological Paradigms

Intelligent technologies are leading to the next wave of industrial revolution in manufacturing. In developed economies, firms are embracing these advanced technologies following a sequential upgrading strategy—from digital manufacturing to smart manufacturing (digital-networked), and then to new-generation intelligent manufacturing paradigms. However, Chinese firms face a different scenario. On the one hand, they have diverse technological bases that vary from low-end electrified machinery to leading-edge digital-network technologies; thus, they may not follow an identical upgrading pathway. On the other hand, Chinese firms aim to rapidly catch up and transition from technology followers to probable frontrunners; thus, the turbulences in the transitioning phase may trigger a precious opportunity for leapfrogging, if Chinese manufacturers can swiftly acquire domain expertise through the adoption of intelligent manufacturing technologies. This study addresses the following question by conducting multiple case studies: Can Chinese firms upgrade intelligent manufacturing through different pathways than the sequential one followed in developed economies? The data sources include semi-structured interviews and archival data. This study finds that Chinese manufacturing firms have a variety of pathways to transition across the three technological paradigms of intelligent manufacturing in non-consecutive ways. This finding implies that Chinese firms may strategize their own upgrading pathways toward intelligent manufacturing according to their capabilities and industrial specifics; furthermore, this finding can be extended to other catching-up economies. This paper provides a strategic roadmap as an explanatory guide to manufacturing firms, policymakers, and investors