Impact of Industry 4.0 drivers on the performance of the service sector: comparative study of cargo logistic firms in developed and developing regions

Abstract

This study investigates the impact of Industry 4.0 on the performance of the cargo logistic business (service sector) in Bangladesh and Canada. Our drivers of Industry 4.0 include big data, smart factory, cyber physical systems (CPS) and the Internet of things (IoT). However, there is dearth of research showcasing the effects of these drivers on the service sector in various countries. For this reason, we consider the Technology-Organisation-Environment (TOE) framework, as shaped by the institutional theory, within the context of this research. This research adopts a cross-sectional quantitative approach to identify the variation in sub-groups that refer to the samples in Bangladesh and Canada. Through purposive sampling, networking, and connections, a total of 210 (105 each) survey questionnaires, as completed by employees working in logistics companies, were gathered. Smart partial least square-structural equation modelling (PLS-SEM) was used to analyse the collected data, which revealed that Industry 4.0 has a significant role in promoting and improving the performance of the services industry of both economies. However, the impact of all drivers is more highly statistically significant for Canada than for Bangladesh. Thus, this research demonstrates the role of Industry 4.0 in terms of improving the performance of the logistics industries in contrasting economies.