Understanding BMI from Industry 4.0, knowledge management and market uncertainty perspective

Abstract

PurposeThe main purpose of this study is to investigate the role of Industry 4.0 capability (I4.0 C) in creating a supportive environment for business model innovation by focussing on the mediating role of knowledge management capability (KMC) and the moderating effect of market uncertainty.Design/methodology/approachThis paper uses interviews with managers and academics. Data were collected from 379 managers; CFA and finally regression analysis were performed, and the program “PROCESS” software was used to validate the data and examine the hypothesized relationships.FindingsKMC mediates the relationship between Industry 4.0 capability and business model innovation. The effect of Industry 4.0 capability on KMC is stronger for firms with increased market uncertainty. In contrast, the impact of KMC on business model innovation is weaker for firms operating in highly-uncertain markets.Research limitations/implicationsData were collected at only one point in time from one country, Greece. This might pose limitations on the generalizability of our results. Future research should test the relationships examined in this study in other international contexts.Practical implicationsManagers should invest in more advanced technology in order to obtain knowledge and capability. In addition, they need to pay more attention to how their firms' knowledge derived from Industry 4.0 contributes to business model innovation.Originality/valueThe current state of knowledge of both theory and practise for critical organizational factors such as Industry 4.0 capability, KMC, business model innovation and market uncertainty will be extended.