Examining the impact of Cloud ERP on sustainable performance: A dynamic capability view

Abstract

The infusion of cloud-based operations, industrial internet connectivity, additive manufacturing, and cybersecurity platforms has not only re-engineered but also revitalized modern factories (Industry 4.0). Cloud-based Enterprise Resource Planning (Cloud ERP), which is a part of the cloud operations and one of the four major pillars of Industry 4.0, helps to attain higher levels of sustainable performance. Organizations invest considerable time and money to acquire both tangible and intangible capabilities to rise as an Industry 4.0 business. A great deal of research has focused on the bifurcation of the actual characteristics of performance. This study investigates the hidden linkage between one of the significant pillars of Industry 4.0 (CERP) and attributes of sustainable organizational performance while considering the effect of variables like firm size, cloud service type, and offerings that enact as control variables while achieving sustainable performance. The proposed hypotheses were empirically examined using primary cross-sectional data. Following Dillman (2007) guidelines, 209 responses were collected from technologically driven organizations and analyzed using partial least square structure equation modelling (PLS-SEM). The results offer interesting implications to the theory and provide further guidance to managers.