Role of investments in profit formation in the era of Industry 4.0: Case study of the Czech manufacturing industry

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62690094%3A18450%2F25%3A50023248" target="_blank" >RIV/62690094:18450/25:50023248 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.ekonomie-management.cz/archiv/search/detail/2223-role-of-investments-in-profit-formation-in-the-era-of-industry-4-0-case-study-of-the-czech-manufacturing-industry/" target="_blank" >https://www.ekonomie-management.cz/archiv/search/detail/2223-role-of-investments-in-profit-formation-in-the-era-of-industry-4-0-case-study-of-the-czech-manufacturing-industry/</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.15240/tul/001/2025-4-005" target="_blank" >10.15240/tul/001/2025-4-005</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Role of investments in profit formation in the era of Industry 4.0: Case study of the Czech manufacturing industry

Popis výsledku v původním jazyce

This study investigates the role of investments in shaping profitability within the Czech manufacturing industry between 2008 and 2022. Drawing on comprehensive industry-level data, we analyze the relationship between investment volume, efficiency, and profitability, particularly within the evolving framework of Industry 4.0. Our findings show that larger sectors with higher investment volumes generally achieve greater profitability. However, this relationship is non-linear: excessive investments can reduce efficiency, as reflected in declining added value per unit of investment. Regression analyses reveal that added value is the primary driver of profitability across manufacturing industrial sectors. Other factors, such as workforce size and the lagged effects of investments, exhibit only limited explanatory power. Furthermore, the study identifies inefficiencies arising from overinvestment, which may be attributed to market saturation, failure to fully realize economies of scale, and the unintended effects of government subsidy schemes. These results emphasize the importance of strategic investment planning that prioritizes long-term efficiency rather than short-term quantitative expansion. In the rapidly evolving context of Industry 4.0, firms must align their investment strategies with sector-specific conditions and technological demands to maintain sustainable competitiveness. This study illuminates the complex dynamics between investment behavior and profitability, offering valuable insights for managerial decision-making and economic policy formulation. It contributes to a broader understanding of how targeted investment strategies can enhance the performance of manufacturing sectors undergoing technological transformation.

Název v anglickém jazyce

Role of investments in profit formation in the era of Industry 4.0: Case study of the Czech manufacturing industry

Popis výsledku anglicky

This study investigates the role of investments in shaping profitability within the Czech manufacturing industry between 2008 and 2022. Drawing on comprehensive industry-level data, we analyze the relationship between investment volume, efficiency, and profitability, particularly within the evolving framework of Industry 4.0. Our findings show that larger sectors with higher investment volumes generally achieve greater profitability. However, this relationship is non-linear: excessive investments can reduce efficiency, as reflected in declining added value per unit of investment. Regression analyses reveal that added value is the primary driver of profitability across manufacturing industrial sectors. Other factors, such as workforce size and the lagged effects of investments, exhibit only limited explanatory power. Furthermore, the study identifies inefficiencies arising from overinvestment, which may be attributed to market saturation, failure to fully realize economies of scale, and the unintended effects of government subsidy schemes. These results emphasize the importance of strategic investment planning that prioritizes long-term efficiency rather than short-term quantitative expansion. In the rapidly evolving context of Industry 4.0, firms must align their investment strategies with sector-specific conditions and technological demands to maintain sustainable competitiveness. This study illuminates the complex dynamics between investment behavior and profitability, offering valuable insights for managerial decision-making and economic policy formulation. It contributes to a broader understanding of how targeted investment strategies can enhance the performance of manufacturing sectors undergoing technological transformation.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50204 - Business and management

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

E+M. Ekonomie a management

ISSN

1212-3609

e-ISSN

2336-5064

Svazek periodika

28

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

CZ - Česká republika

Počet stran výsledku

15

Strana od-do

64-78

Kód UT WoS článku

001638287400005

EID výsledku v databázi Scopus

2-s2.0-105026164433