Developing sustainable and resilient supply chain: Industry 4.0 drivers, dynamic capabilities, and performance evaluation

Industry 4.0 technologies have emerged as a critical strategic resource for firms seeking to enhance supply chain capabilities and improve both economic and environmental performance. However, the mechanisms through which these technologies translate into superior supply chain performance remain insufficiently understood. To address this gap, grounded in organisational information processing theory (OIPT), this study examines the impact of Industry 4.0 technologies on dynamic capabilities and the subsequent influence of capabilities on supply chain performance. The study draws on primary data collected from firms operating in multiple industrial sectors, including automobiles, electronics, textiles, and pharmaceuticals, and employs partial least squares structural equation modelling to test the hypotheses derived from the conceptual framework. The results demonstrate that Industry 4.0 enabling technologies enhance core supply chain dynamic capabilities, including visibility, resilience, and sustainability. Furthermore, supply chain visibility plays a crucial role in positively influencing supply chain resilience and partially mediating the relationship between Industry 4.0 technologies and supply chain resilience. Overall, this study advances understanding of how Industry 4.0 technologies translate into superior supply chain capabilities and performance, offering actionable insights for supply chain managers and policymakers on designing and integrating digitally enabled supply chains.