Barriers and Readiness for Cyber-Physical Systems Adoption in Rajasthan\u2019s Textile SMEs: A PLS-SEM Study

Small and medium-sized enterprises (SMEs) are the backbone of the Rajasthan textile economy, however, most of them are still working with limited digitalisation. As the world of manufacturing moves swiftly towards Industry 4.0, Cyber-Physical Systems (CPS) have emerged as a leading technological element that has the potential to change the traditional production processes using real-time data exchange, automation, and intelligent decision-making. However, the preparedness and actual barriers that affect the adoption of CPS in Indian SME environments - particularly in the textile sector - are not well known. This research tackles this gap by investigating the determinants of the CPS adoption readiness of textile based SMEs in Rajasthan by utilizing robust Partial Least Squares Structural Equation Modelling (PLS-SEM) framework. Based on a literature review on digital transformation and adopting technology in SMEs, a structured survey instrument was created based on 11 latent constructs and their four reflective indicators, and later analyzed. The constructs were technological infrastructure, financial capacity, managerial support, workforce skills, process maturity, cybersecurity issues, regulatory environment, supply chain readiness, perceived benefits, organisational culture, external support and the dependent construct: CPS adoption readiness. The survey was distributed amongst textile SMEs in the leading industrial districts of Rajasthan where responses of 400 participants were collected and analysed. The respondent profile was representative of actual patterns of the textile sector, with about 85% being male and 15% female participation, the different sub-sectors such as spinning, weaving, dyeing, and garment production, and the different sizes of organisations. The reliability of the data set, construct validity, and multicollinearity (as independent variables) were tested and a structural relationship analysis was performed. Preliminary results show that managerial support, financial capability, external support systems, and workforce skills can have a significant impact on CPS readiness, while cybersecurity concerns and poor technological infrastructure are likely to delay decisions around adoption. Perceived operational benefits have a positive effect on managerial willingness for investment and this increases the relationship between strategic vision and readiness.