Analysis of the relationship among Industry 4.0 technologies, sustainable manufacturing practices and organizational sustainable performance using structural equation modelling

Abstract

PurposeThe purpose of this study is to discuss the construction of a structural measurement model utilizing structural equation modelling (SEM) to confirm the link between Industry 4.0 technologies, sustainable manufacturing practices and organizational sustainable performance. Relationship among the paradigm has yet to be fully investigated, necessitating a more conceptual and empirical examination on what impact they have on organizational sustainable performance when used together.Design/methodology/approachIndustry 4.0 and sustainable production practices aim to progress a company's business competitiveness, forming sustainable development that benefits manufacturing companies. The aim of the study is to analyze the relationship between constructs that lead to operational excellence in firms that use Industry 4.0 technologies and sustainable manufacturing techniques. Experts from diverse automotive industries, who are applying both Industry 4.0 and sustainable manufacturing practices, provided data for the study.FindingsStatistical estimations (hypotheses) are created to substantiate the measurement model that has been developed. The structural model was analysed, and the findings were discussed. The statistical estimate is either approved or rejected based on the findings. According to the conclusions of this study, strong link exists between Industry 4.0 technologies and sustainable manufacturing practices that affect organizational sustainable performance environmentally, economically and socially.Practical implicationsThe research was conducted in the framework of automobile component manufacturing companies in India. The outcomes of the study are practically feasible.Originality/valueThe authors' novel contribution is the construction of a structural model with Industry 4.0 technologies and sustainable manufacturing practices into account.