Industry 4.0 and green supply chain practices: an empirical study

• Published in: International journal of productivity and performance management 2022-02, Vol.71 (3), p.814-832
• Main Authors: Umar, Muhammad, Khan, Syed Abdul Rehman, Yusoff Yusliza, Mohd, Ali, Shahzad, Yu, Zhang
• Format: Article
• Language: English
• Subjects: Automation; Blockchain; Circular economy; Cloud computing; Digital technology; Economic growth; Economics; Emerging markets; Empirical analysis; Energy consumption; Environmental impact; Environmental management; Environmental performance; GDP; Gross Domestic Product; Human error; Impact analysis; Industry 4.0; Initiatives; Internet of Things; Manufacturing; Product life cycle; Research methodology; Sensors; Supply chain sustainability; Supply chains; Sustainability
• ISSN: 1741-0401; 1758-6658
• DOI: 10.1108/IJPPM-12-2020-0633

PurposeThe purpose of this study is to examine the impact of Industry 4.0 on economic and environmental performance through the mediation of green supply chain management (GSCM) practices in the emerging economic context, like Pakistan.Design/methodology/approachThis cross-sectional study investigates Industry 4.0 effects on economic and environmental performance through GSCM practices in an emerging economy. For the testing of hypotheses, Smart-PLS is employed. In total, 284 valid responses were analyzed in this study.FindingsThe outcomes indicate that GSCM practices mediate the effect of Industry 4.0 on both economic and environmental performance. Also, the results indicate that GSCM practices are positively affected by Industry 4.0.Research limitations/implicationsThe scope of this study is limited to manufacturing firms in Pakistan. Future studies may explore other variables that could expedite the adoption of GSCM as the concept of GSCM is still in its infancy. Future studies can conceptualize GSCM through resource based theory as mainstream SCM research has largely ignored the synergistic view of resource based approach in conceptualizing green supply chain models. Implications include policy making that emphasis on enhancing environmental knowledge training.Originality/valueAccording to the best knowledge of the researcher, no study has been conducted regarding the effect of Industry 4.0 on economic and environmental performance through the mediation of GSCM practices in the emerging economy, like Pakistan.