Analyzing manufacturing strategies and Industry 4.0 supplier performance relationships from a resource-based perspective

Abstract

PurposeThe purpose of this paper is to investigate the impact of manufacturing strategies on Industry 4.0 supplier performance. Suppliers play a crucial role in manufacturing supply chains, and firms are dependent on identifying and managing them to enhance Industry 4.0 supplier performance.Design/methodology/approachA descriptive to causal research is conducted with survey and tested via multiple regression analysis. Using the extant literature, four manufacturing strategies are identified and analyzed as the determinants of supplier performance pertaining to the fourth industrial revolution (Industry 4.0). A survey was designed and targeted to 200 samples of manufacturing firms in Thailand. Finally, the research model was tested to examine the hypothesized relationships.FindingsBased on the results, it was found that better quality and flexibility in manufacturing positively impact Industry 4.0 supplier performance. However, the rate of delivery and cost reduction did not have any statistical influence on the Industry 4.0 supplier performance.Research limitations/implicationsThe data for this study were collected from Thailand, only one country. Hence, the findings are indicative but not representative of other Asian countries. Also, the findings are not generalizable to other industries.Practical implicationsThis study will enable supply chain professionals to understand the determinants of Industry 4.0 supplier performance within an Asian context, which will be valuable to them when sourcing from Asian suppliers. To compete successfully in increasingly globalized world, firms must use their resources effectively and productively. Firms must align their vital resources and capabilities to maximize competitive advantage.Originality/valueThe paper identifies the manufacturing strategies that significantly influence the Industry 4.0 supplier performance of manufacturing companies.