Role of Industry 4.0 tools in organizational performance of the IT sector

Abstract

PurposeIn the contemporary period, numerous businesses undergo significant adjustments, such as evaluating critical components of the corporate operations and relying on technology to keep operations running while conforming to an ever-changing set of norms and new tactics. The present study aims to (1) explore the relationship between Industry 4.0 (I4.0) tools and their impact on organizational performance and (2) find evidence supporting the moderating role of remote working and organizational agility (OA) in enhancing organizational performance.Design/methodology/approachThe study employed the quantitative research method, and the data were collected from individuals working in different Asian IT firms using the previously established questionnaire. The data were examined using SPSS v22. Different statistical tests have been performed to find the relationship among constructs.FindingsThis study uncovers that I4.0 tools impact organizational performance, especially in the IT sector, with a particular emphasis on the moderating influence of remote work and OA. I4.0 tools encompass pivotal components such as artificial intelligence (AI), big data (BD), cloud computing (CC) and Internet of Things (IoT) indeed augment organizational performance. It can be referenced that I4.0 tools play the role of a driving force that equips organizations with the knowledge to augment their performance.Practical implicationsCompanies should encourage remote work and use I4.0 technology to support and manage it. Enabling people to work from any location, lowering the requirement for physical infrastructure and enabling a more flexible and responsive organizational structure can increase OA. In conclusion, firms in Asia may increase the performance and agility using I4.0 technology. Organizations may innovate by putting money into these technologies, encouraging remote work and creating an innovative culture.Social implicationsIn this dynamic and technologically advanced environment, every industry is forced to look for latest tools, i.e. I4.0, tools to augment the performance. It has been concluded that I4.0 tools are “better practices” for boosting organizational performance; hence, the findings benefit firms working in the IT sector. The verdicts of this research can assist organizations in making decisions regarding the implementation of I4.0 tools.Originality/valueTo the best of the authors' knowledge, no specific study could be found in which the relationship among these constructs had been investigated earlier in the IT sector. This research work acts as value addition to the literature as it illustrates technological advancements may increase organizational performance, especially in Asia. This research work adds to the body of knowledge by amplifying the effect of latest technologies on organizational performance, via remote work and OA.