Abstract
Industry 4.0 technologies provide digital solutions for the automation of manufacturing. In circular economy-based models, the resources stay in the system as it experiences one of the 10 R (Refuse, Rethink, Reduce, Reuse, Repair, Refurbish, Remanufacture, Repurpose, Recycle, and Recover) processes. These 10 R processes require the development of advanced manufacturing capabilities; however, 10 R processes suffer from various challenges and can be effectively overcome through Industry 4.0 technological applications. Although literature has indicated the use of various Industry 4.0 technologies, little information is available about firms’ views on the degree of Industry 4.0 application in the 10 R based advanced manufacturing area and its ability to achieve sustainable development. The current study aspires to examine how great an effect Industry 4.0 adoption has on 10 R advanced manufacturing capabilities and its outcome on sustainable development under the moderating effect of an Industry 4.0 delivery system. Practice-based view and Dynamic capability view theories are used to conceptualise the theoretical model. The research team statistically validated the theoretical model considering 124 data points that were collected using an online survey with a structured questionnaire. The findings point out that the path degree of Industry 4.0 adoption and 10 R advanced manufacturing capabilities are statistically significant. 10 R advanced manufacturing capabilities are found to have a positive influence on sustainable development outcomes. Industry 4.0 delivery system has a moderating effect on the path degree of I4.0 implementation and 10 R advanced manufacturing capabilities. The study concludes with key take away points for managers.
•Impact of Industry 4.0 adoption on 10R advanced manufacturing capabilities and sustainable development.•Practice-based view and Dynamic capability view theories used to conceptualize the theoretical model.•Empirical survey conducted in emerging economy of South Africa.•Firms with high degree of Industry 4.0 implementation leads to higher level of 10R advanced manufacturing capabilities.•Industry 4.0 delivery system moderates the relationship of I4.0 implementation and 10R advanced manufacturing capabilities.