What is it about?
This study examines the role of Industry 4.0 (IR 4.0) technologies in promoting sustainability within Malaysia's manufacturing sector amid the uncertainties of the post-COVID-19 environment. Using data from 191 firms and structural equation modeling, the research finds that process efficiency significantly enhances all three dimensions of sustainability—economic, environmental, and social. However, the effects of automation and data granularity vary: automation supports economic and social sustainability, while data granularity positively affects environmental outcomes but not economic performance. The findings highlight the need for targeted policy measures and informed managerial strategies to maximize the benefits of IR 4.0 for sustainable development.
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Why is it important?
This study highlights the critical role of Industry 4.0 adoption in enhancing manufacturing sustainability in a post-COVID-19 environment marked by hyper-uncertainty, particularly through improvements in process efficiency. It also reveals nuanced impacts, showing that while process efficiency drives all dimensions of sustainability, automation and data granularity contribute selectively, underscoring the need for targeted policy and managerial strategies in developing economies.
Perspectives
This study presents a timely perspective on how IR 4.0 can act as a strategic response to post-COVID-19 uncertainties in the manufacturing sector, especially in developing economies like Malaysia. It underscores the need to move beyond a one-size-fits-all approach, suggesting that different IR 4.0 components (automation, data granularity, and process efficiency) uniquely influence the environmental, social, and economic pillars of sustainability, thus requiring tailored implementation and policy alignment.
Dr. Muhammad Khalilur Rahman
Faculty of Entrepreneurship and Business University Malaysia Kelantan
Read the Original
This page is a summary of: Impact of Industry 4.0 on sustainability of Malaysia’s manufacturing industry in post-COVID era, foresight, February 2025, Emerald,
DOI: 10.1108/fs-03-2023-0043.
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