Exploring moderating effects of industry 4.0 adoption on sustainable performance of Malaysian manufacturing organizations

ABSTRACT Industry 4.0 adoption helps businesses to achieve sustainable operations. This study aims to identify the drivers of firms’ sustainable performance and explore the moderating role of industry 4.0 adoption on financial, environmental, and social sustainable performance. The triple bottom line, resource-based view, and stakeholder theory were used as the foundational theories and data was collected from 269 Malaysian manufacturing three organizations. The results showed significant effects of stakeholder pressure, organization capabilities, green marketing, and green entrepreneurial orientation on organizational sustainable performance. Meanwhile, the direct impacts of organizational sustainable performance on financial, environmental, and social aspects were supported. Industry 4.0 adoption showed remarkable moderating effects on financial and environmental aspects of sustainable performance. The study provides manufacturers with significant insights into how they need to respond to sustainable development in effective ways. The findings can assist managers and policymakers in setting strategic plans to achieve sustainable performance through industry 4.0 adoption. GRAPHICAL ABSTRACT