Abstract: This paper studies whether investments in Industry 4.0 improve performance and give SMEs (Small and Medium-Sized Enterprises) an opportunity to get ahead. We base our research on the competitive context by considering the number of firms in specific industries and the inverted-U framework. We analyze the effects of investing in five digital enablers (Big Data, Cloud Computing, Cybersecurity, Advanced Robotics, and the Internet of Things) on firm revenues, labor performance, and profitability in terms of neck-and-neck and leader-laggard competition models. Results from 274 SMEs for the period 2005?2018 show that these effects depend on the technology implemented. Big Data contributes to competitive advantages, while investing in Advanced Robots is negative for sales growth. We do not have conclusive results about Cybersecurity, Cloud Computing, and the Internet of Things. These findings have relevant implications for both managers and public administrations, as they demonstrate that investing in Industry 4.0 improves productivity in the case of some of the enablers.
