Achieving Technological Transformation and Social Sustainability: An Industry 4.0 Perspective

Abstract

In recent years, technological transformation such as Industry fourth revolution or Industry 4.0 (I4.0) has been a critical enabler of digital transformation (DT) and the potential way of business for sustainable development. I4.0 plays a vital role in a business, yet the relationship of digitalization with social sustainability performance (SSP) and sustainable consumption and production (SCP) is little known. Hence, this study examined the relationships between I4.0, “digital entrepreneurship” (DE), DT, SSP, and SCP. Data collected from Indian “microsmall and medium enterprises” were used to assess the proposed model. Research hypotheses were formulated from the previous literature and tested using “partial least-square structural equation modeling.” The empirical test includes confirmatory factor analysis, hypothesis testing, moderation, and multigroup analysis. The finding implies that DT is significantly attained by I4.0 in the manufacturing sector. Furthermore, results indicated that DT significantly impacted SCP and SSP. The study's findings also suggest that DE has substantial moderation effects on DT. Overall, these findings contribute to a well understanding of the significance of technological transformation in sustainable development. Furthermore, the study discussed the theoretical and managerial implications of the result, and future avenues of research were also highlighted.