Unveiling the impact of industry 4.0 on supply chain performance: the mediating role of integration and visibility
Paul Reaidy, Morteza Alaeddini, Angappa Gunasekaran, Olivier Lavastre, Muhammad Shahzad
Abstract
Industry 4.0 has revolutionised supply chain processes, providing companies with strategic advantages through advanced technologies such as cyber-physical systems, cloud computing, IoT, AI, and big data. This transformation aligns with the pursuit of high-level supply chain performance, achieved through cross-functional collaboration, end-to-end connectivity, real-time asset tracking, and increased decision transparency. However, the quantifiable extent of its influence has remained an open question, particularly in the context of integration and visibility. To address this gap, our research employs an empirical study, revealing that Industry 4.0 indirectly enhances supply chain performance by improving connectivity and integration within and between organisations, as well as enhancing information visibility and decision transparency. This research uncovers a novel sequential mediation by integration and visibility, offering valuable insights for scholars and industry practitioners alike.