The Impact of Industry 4.0 Adoption on Sustainability: Evidence from an Emerging Country


Hassan, Mohammad Nurul and Jayashree, Sreenivasan and Chinnasamy Agamudainambhi, Malarvizhi (2022) The Impact of Industry 4.0 Adoption on Sustainability: Evidence from an Emerging Country. In: Postgraduate Social Science Colloquium 2022, 1 - 2 June 2022, Online.

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Background - Emerging technologies of Industry 4.0 enable manufacturing proficiency and substantially influence sustainability. Therefore, organizations should adopt Industry 4.0 to strengthen sustainable practices. However, a lack of adequate guidance in current literature is evident. As a result, Industry 4.0 adoption is relatively low, particularly in emerging countries like Malaysia. Purpose - This study intends to examine the relationships between the success factors of Industry 4.0, effective execution of Industry 4.0, and sustainability. Accordingly, by integrating the “Technology Organization & Environment (TOE)” and the “Diffusion of Innovation Model (DOI),” the study offers a comprehensive framework to improve sustainability measures among organizations through digital transformation. Initially, an extensive literature review was conducted to identify the success factors that enhance Industry 4.0 adoption towards sustainability. Further, the framework was established and tested through statistical analysis. Design/methodology/approach - The study employed a quantitative approach based on a random selection of 256 Malaysian SMEs. Structural Equation Modeling (PLS-SEM) was used to perform the statistical analysis. Findings/Expected Contributions - There is a strong correlation between Industry 4.0 adoption and IT resources, managerial leadership, teamwork, and external support. The impact of market pressure, on the other hand, was negligible. IT resources, managerial leadership, teamwork, and external support all substantially affect the organization’s sustainability. Furthermore, Industry 4.0 adoption has a significant impact on sustainability. Research limitations - The study conducted a cross-sectional survey; therefore, a longitudinal study is encouraged, which might provide a better result. Moreover, as the survey collected data from Malaysian SMEs, future research on another geographical context might be interesting. Originality/value - Very few studies empirically examined the relationship between technology adoption and sustainability in the existing literature. To fill the research gap, the study proposed a unique model of the success factors of Industry 4.0 and its implementation, emphasizing sustainability. The model was validated through the data collected from a large sample.

Item Type: Conference or Workshop Item (Paper)
Uncontrolled Keywords: Industry 4.0, IT resources, managerial leadership, teamwork, external support, market pressure, sustainability
Subjects: T Technology > T Technology (General)
Divisions: Faculty of Management (FOM)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 18 Aug 2022 01:39
Last Modified: 18 Aug 2022 01:39


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