Industry 4.0 and green supply chain practices: an empirical study

Abstract

Purpose The purpose of this study is to examine the impact of Industry 4.0 on economic and environmental performance through the mediation of green supply chain management (GSCM) practices in the emerging economic context, like Pakistan. Design/methodology/approach This cross-sectional study investigates Industry 4.0 effects on economic and environmental performance through GSCM practices in an emerging economy. For the testing of hypotheses, Smart-PLS is employed. In total, 284 valid responses were analyzed in this study. Findings The outcomes indicate that GSCM practices mediate the effect of Industry 4.0 on both economic and environmental performance. Also, the results indicate that GSCM practices are positively affected by Industry 4.0. Research limitations/implications The scope of this study is limited to manufacturing firms in Pakistan. Future studies may explore other variables that could expedite the adoption of GSCM as the concept of GSCM is still in its infancy. Future studies can conceptualize GSCM through resource based theory as mainstream SCM research has largely ignored the synergistic view of resource based approach in conceptualizing green supply chain models. Implications include policy making that emphasis on enhancing environmental knowledge training. Originality/value According to the best knowledge of the researcher, no study has been conducted regarding the effect of Industry 4.0 on economic and environmental performance through the mediation of GSCM practices in the emerging economy, like Pakistan.