Impact of Industry 4.0 and Lean Manufacturing on the Sustainability Performance of Plastic and Petrochemical Organizations in Saudi Arabia

Abstract

Plastic and petrochemical industries are lagging behind in terms of environmental sustainability performance because of the nature of these industries. Although plastic and petrochemical industries have adopted lean manufacturing and/or Industry 4.0 technologies, more efforts are needed to enhance sustainable development. The purpose of this study is to explore the integrated impact of Industry 4.0 technologies and lean manufacturing on the sustainability performance of plastic and petrochemical industries in Saudi Arabia. Moreover, it investigates the casual relationship between Industry 4.0 technologies and sustainability performance as well as the direct linkage between Industry 4.0 and lean manufacturing. A questionnaire is used as the primary instrument for collecting data from 112 plastic and petrochemical organizations. A hypothesized relationship is formulated and then analyzed using the structural equation modeling (SEM) approach. The outcome of the analysis shows that Industry 4.0 and lean manufacturing have a positive impact on sustainability performance. The study also presents a list of valid constructs for Industry 4.0 technologies, lean manufacturing, and sustainability performance. Furthermore, the study shows that the plastic and petrochemical industries in Saudi Arabia acknowledge and recognize the contribution of Industry 4.0 technologies and lean manufacturing principles to the protection of the environment as a dimension of sustainability performance.