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Impact of Industry 4.0 and Lean Manufacturing on the Sustainability Performance of Plastic and Petrochemical Organizations in Saudi Arabia

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  • Ahmed Ghaithan

    (Construction Engineering and Management Department, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia
    Interdisciplinary Research Center of Smart Mobility and Logistics, King Fahd University of Petroleum and Minerals, P.O. Box 5067, Dhahran 31261, Saudi Arabia)

  • Mohammed Khan

    (Construction Engineering and Management Department, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia)

  • Awsan Mohammed

    (Construction Engineering and Management Department, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia
    Interdisciplinary Research Center of Smart Mobility and Logistics, King Fahd University of Petroleum and Minerals, P.O. Box 5067, Dhahran 31261, Saudi Arabia)

  • Laith Hadidi

    (Construction Engineering and Management Department, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia
    Interdisciplinary Research Center of Smart Mobility and Logistics, King Fahd University of Petroleum and Minerals, P.O. Box 5067, Dhahran 31261, Saudi Arabia)

Abstract

Plastic and petrochemical industries are lagging behind in terms of environmental sustainability performance because of the nature of these industries. Although plastic and petrochemical industries have adopted lean manufacturing and/or Industry 4.0 technologies, more efforts are needed to enhance sustainable development. The purpose of this study is to explore the integrated impact of Industry 4.0 technologies and lean manufacturing on the sustainability performance of plastic and petrochemical industries in Saudi Arabia. Moreover, it investigates the casual relationship between Industry 4.0 technologies and sustainability performance as well as the direct linkage between Industry 4.0 and lean manufacturing. A questionnaire is used as the primary instrument for collecting data from 112 plastic and petrochemical organizations. A hypothesized relationship is formulated and then analyzed using the structural equation modeling (SEM) approach. The outcome of the analysis shows that Industry 4.0 and lean manufacturing have a positive impact on sustainability performance. The study also presents a list of valid constructs for Industry 4.0 technologies, lean manufacturing, and sustainability performance. Furthermore, the study shows that the plastic and petrochemical industries in Saudi Arabia acknowledge and recognize the contribution of Industry 4.0 technologies and lean manufacturing principles to the protection of the environment as a dimension of sustainability performance.

Suggested Citation

  • Ahmed Ghaithan & Mohammed Khan & Awsan Mohammed & Laith Hadidi, 2021. "Impact of Industry 4.0 and Lean Manufacturing on the Sustainability Performance of Plastic and Petrochemical Organizations in Saudi Arabia," Sustainability, MDPI, vol. 13(20), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:20:p:11252-:d:654716
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    2. Juil Kim & Hye-ryun Jeong & Hyesu Park, 2023. "Key Drivers and Performances of Smart Manufacturing Adoption: A Meta-Analysis," Sustainability, MDPI, vol. 15(8), pages 1-19, April.
    3. Mohammed Alquraish, 2025. "Digital Transformation, Supply Chain Resilience, and Sustainability: A Comprehensive Review with Implications for Saudi Arabian Manufacturing," Sustainability, MDPI, vol. 17(10), pages 1-33, May.
    4. Catherine Maware & David M. Parsley, 2023. "Can Industry 4.0 Assist Lean Manufacturing in Attaining Sustainability over Time? Evidence from the US Organizations," Sustainability, MDPI, vol. 15(3), pages 1-23, January.
    5. Matti Haverila & Jenny Carita Twyford & Hadi Zarea, 2025. "Analyzing the Interaction of Industry 4.0 and Sustainable Global Marketing Channel Development with Necessary Condition Analysis: The Role of Inter-Organizational Trust," Sustainability, MDPI, vol. 17(6), pages 1-25, March.
    6. Dounia Skalli & Abdelkabir Charkaoui & Anass Cherrafi & Jose Arturo Garza‐Reyes & Jiju Antony & Alireza Shokri, 2024. "Analyzing the integrated effect of circular economy, Lean Six Sigma, and Industry 4.0 on sustainable manufacturing performance from a practice‐based view perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1208-1226, February.
    7. Yongbo Li & Murugesan Palaniappan & Naser Alsaleh & D. Thresh Kumar & Abdullah A. Elfar & Mark Christhian Barrueta Pinto & Adriana Montenegro Torres, 2025. "Decision analysis on sustainable manufacturing practices: cross country perspective," Annals of Operations Research, Springer, vol. 345(1), pages 277-315, February.
    8. Serhan Alshammari & Mohamed Aichouni & Naim Ben Ali & Omar S. Alshammari & Fatimah Alfaraj & Ahmed Baha Eddine Aichouni, 2025. "Impact of Total Quality Management and Lean Manufacturing on Sustainability Performance: An SEM-ANN Approach in Saudi Food Manufacturing," Sustainability, MDPI, vol. 17(5), pages 1-34, March.

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