The Impact of Industry 4.0 on Supply Chain Integration in Apparel Sector, Sri Lanka

Abstract

Industry 4.0 can be identified as a critical enabler of supply chain integration. This study aims to investigate the impact of Industry 4.0 on supply chain integration (SCI) in apparel industry in Sri Lanka. The study employed quantitative approach having targeted 72 apparel companies registered in the Sri Lankan apparel exporter association for data collection purposes and data analysis was conducted using linear regression analysis technique. Findings reveals that there is a statistically significant positive impact of Industry 4.0 (internet of things, cloud computing, and cyber security) on supply chain integration. Interestingly, cloud computing shows a more robust positive impact on supply chain integration in comparison to internet of things and cyber security. For the supply chain practitioners, the results can be beneficial for understanding the importance and potential of industry 4.0 on supply chain integration in the apparel industry. It will also aid supply chain managers in deciding which technology trends should be prioritized and invested to optimize the scarce tech resources in the company. This study provides insights into the literature on link between supply chain integration and industry 4.0 in developing country contexts. Also, this paper is one of the few first studies focusing the link between industry 4.0 and supply chain integration.