Industry 4.0 Technologies Adoption and Sustainability Integration in Human Resource Management: An Analysis Using Extended TOE Framework and TISM

Abstract

The growing interest for Industry 4.0 Technologies (I4T) adoption and a pressing need for sustainability integration have witnessed the attention of human resource management (HRM) practitioners and researchers alike. Therefore, this study attempts to propose a unified model for I4T adoption and sustainability integration in HRM. Underscoring the importance of “people dimension” in HRM context, this study proposes an extended technology-organizational-environmental (TOE) (i.e., TOE dimensions along with “people dimension”) framework to identify enablers that facilitate I4T adoption and sustainability integration in HRM. Moreover, this study delineates the interrelationships among the identified enablers by employing total interpretive structural modeling (TISM) methodology and eventually proposes a seven-level hierarchical model. MICMAC analysis is carried out to classify these enablers based on their driving power and dependence. The findings reveal that enablers under “environmental dimension” attain highest driving power followed by enablers under “organizational,” “technological,” and “people” dimensions. To ensure the robustness of the proposed model, hypothesis testing (through t -test) is utilized to validate all direct and significant transitive links. The findings of this research should assist practitioners and scholars in understanding and managing the crucial enablers of Industry 4.0 technologies led sustainable HRM. Managerial Relevance Statement: This study assists practitioners in identifying the decisive enablers that facilitate I4T adoption and sustainability integration in HRM. This study highlights the significance of the extended TOE framework, and the identified 17 decisive enablers are categorized under technological, organizational, environmental, and people (TOEP) dimensions. By utilizing the TISM-based hierarchical model developed in this study, practitioners predominantly need to emphasize on the key enablers (i.e., enablers under environmental and organizational dimensions) that drive the entire hierarchical model for achieving Industry 4.0 technologies-led sustainable HRM. Moreover, this study highlights the significance of the “people dimension” for I4T adoption and guides HR professionals to also emphasize on enablers under the “people dimension” while implementing I4T and sustainability in organizations. Managers can utilize the proposed TOEP framework for technology adoption in other people-centric domains.