Industry 4.0 Competencies and Sustainable Manufacturing Performance in the Context of Manufacturing SMEs: A Systematic Literature Review

As the backbone of Malaysia’s economy, small and medium-sized enterprises (SMEs), particularly those in the manufacturing industry, are spotlighted in times of crisis, considering the substantial risks that small businesses must overcome. SME manufacturers strive to drive productivity and enhance competitiveness amid ongoing global challenges. Sustainable manufacturing performance is a key indicator in the manufacturing industry for reviving SMEs in the recovery stage of global crises. With continuous technological advancement, industry 4.0 competencies can have significant influence on expanding the evolution of contemporary manufacturing from theoretical industry 4.0 concepts to real-world applications. There is a gap in the literature regarding the comprehensive investigation of industry 4.0 competencies collectively and their direct impact on sustainable manufacturing performance, as well as the potential moderating influence of rational culture. The research question addressed in this paper aims to provide a comprehensive overview of prevailing studies on the relationship between industry 4.0 competencies and sustainable manufacturing performance. This study references the Global Reporting Initiative and identifies relevant industry 4.0 competencies, conducting a systematic literature review to investigate the relationship between industry 4.0 competencies and sustainable manufacturing performance and the role of rational culture as a moderating variable. Examining research published between 2013 and 2023, only 33 documents satisfy the eligibility criteria. This paper carries implications for SME manufacturers and government in Malaysia, highlighting the importance of recognizing and implementing appropriate industry 4.0 competencies to improve sustainable manufacturing performance and reap associated benefits.