The transformative role of Industry 4.0 in supply chains: Exploring digital integration and innovation in the manufacturing enterprises

Abstract

This study explores the role of Industry 4.0 (I 4.0) technologies in enhancing supply chain performance (SCP), with a particular focus on the mediating functions of Integrated Digital Supply Chain (IDSC), Innovative Supply Chain Practices (ISCP), and supply chain visibility (SCV). The research aims to provide a deeper understanding of how digital transformation reshapes supply chain operations by fostering connectivity, efficiency, and adaptability. A structured survey was conducted among 364 supply chain professionals, and the collected data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to evaluate the proposed conceptual model. The empirical findings confirm that I 4.0 adoption positively influences IDSC, ISCP, and SCV, leading to improved SCP. Notably, ISCP and SCV emerge as crucial enablers, reinforcing the transformative power of technological advancements in supply chain management. These insights highlight the importance of real-time digital integration, continuous innovation, and enhanced visibility in leveraging I 4.0 for competitive advantage. However, as the study is limited to a specific geographical and industrial context, further investigations are required across different sectors and regions to validate the findings. From a practical perspective, organizations should strategically invest in digital infrastructure, encourage innovation-driven practices, and strengthen supply chain transparency to maximize the benefits of I 4.0 technologies. This research contributes to the literature by offering a multi-dimensional perspective on the interplay between digital transformation and supply chain effectiveness, particularly within a developing economy.