Industry 4.0 Technologies for Sourcing Resilience

Sourcing is one of the critical activities in any supply chain due to its direct relationship with cost, quality and operational continuity. There is enough evidence to show how cost, quality and operations are controlled by employing Industry 4.0. However, in a dynamic environment, the resilience of sourcing matters due to its contribution to product cost. Therefore, this research investigates how Industry 4.0 technologies impact sourcing resilience. This study used a 17-item questionnaire survey to collect the data from 239 respondents. It employed a partial least squares and structural equation modelling (PLS-SEM) technique to evaluate the relationship between Industry 4.0 technologies, supplier integration, sourcing flexibility and sourcing resilience. The analysis and results found that Industry 4.0 technologies directly influence sourcing resilience much faster. Results also indicate that Industry 4.0 technologies can help integrate suppliers into sourcing activities and develop sourcing flexibility. The indirect influence of Industry 4.0 technologies on sourcing resilience via supplier integration and sourcing flexibility is found to be moderately positive. This study offers a unique insight to practitioners and academics to view the supply chain from a sourcing view and shows how Industry 4.0 technologies can be helpful. Our study also highlights how sourcing can be considered as a part of the larger system and aligns with the systems theory of operations management.