Impact of Industry 4.0 on Supply Chain Sustainability: Moderating Role of Value Chain

Abstract

Industry 4.0 (I4.0), the Fourth Industrial Revolution, integrates Big Data analytics, blockchain, cloud computing, digitisation and the Internet of Things to enhance supply chain (SC) activities and achieve sustainable growth through dynamic capabilities (DCs). This approach equips businesses with the necessary tools to optimise their operations and remain competitive in a dynamic business environment. The value proposition of a business encompasses a wide range of activities that add value at each stage. By leveraging DCs, a firm can achieve innovation, gain a competitive advantage and enhance its adaptability. Conversely, effective value chain management can amplify the influence of a firm's DCs on SC sustainability, by reducing waste, optimising resource utilisation and fostering strategic partnerships. This mutually beneficial connection takes the form of a dynamic interaction in which I4.0 technologies act as a catalyst to help organisations become more resilient, adaptive and responsive. The adoption of these technologies denotes a comprehensive approach to business shift, not merely technical integration. I4.0 has an impact on several organisational disciplines outside of manufacturing, from automation and efficiency advantages to quality enhancements. This chapter offers an extensive literature review to explore the level of SC sustainability that a business can achieve by combining its DCs and implementing strategic I4.0 adoption. The function of value chain management in moderating the effects of I4.0 and DCs on SC sustainability is also assessed. This study proposes a theoretical model that is grounded in the insights extracted from the literature review.

Citation

Singh, V., Sanghavi, P. and Agrawal, N. (2024), "Impact of Industry 4.0 on Supply Chain Sustainability: Moderating Role of Value Chain", Mathiyazhagan, K., Kishore, A., Behdani, B. and Thanki, H. (Ed.) Impact of Industry 4.0 on Supply Chain Sustainability, Emerald Publishing Limited, Leeds, pp. 171-185. https://doi.org/10.1108/978-1-83797-777-220241013