Application of the COHRV Conceptual Framework to Enhance Sustainable Manufacturing

Abstract

For the implementation of Industry 4.0 (I4.0), companies need the commitment of several departments, knowledge and technology within data management, cyber physical systems, and Internet of Things, among other pillars of I4.0. This industrial revolution (I4.0) offers opportunities for the development of competitive advantages, new market positions within a supply chain, new product design and processes, and manufacturing sustainability. Regardless of such benefits, for small and mid-size enterprises (SMEs) it represents a challenge, because they lack specific capabilities, qualified human resources, and technological and/or financial support. The challenges for SMEs from industrial sectors can be dealt with by means of strategic joint ventures, known as horizontal collaboration. Seen as the new vertical collaboration, horizontal collaboration offers a way for enterprises to combine their strengths in order to gain competitive advantages and develop new market opportunities. This paper presents the Resources and Value Horizontal Collaboration Model, “COHRV”, for its acronym in Spanish, structured as a guide to merge enterprises’ strengths such as knowledge transfer, qualified human resources, technology, and more. The COHRV model was designed as a disruptive business model, presenting a new perspective for horizontal collaboration projects between SMEs. To show the effective applicability of the COHRV model, data obtained from nine SMEs in a previous case study were used. The objective was to observe how the COHRV model works as a framework to create new strategies for SMEs, to work on a sustainable manufacturing venture.