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Linking stakeholder and competitive pressure to Industry 4.0 and performance: Mediating effect of environmental commitment and green process innovation

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  • Manjot Singh Bhatia
  • Saurabh Kumar

Abstract

In the recent few years, with an increase in focus on sustainability, firms have been actively pursuing different strategies to contribute towards sustainability. Industry 4.0 (I4) technologies can help organizations to achieve superior environmental as well as economic performance. Through the lens of stakeholder theory (ST) and Schumpeterian view of competition (SCV), this paper examines whether stakeholder and competitive pressures towards sustainability stimulate organizations to implement I4 technologies and commensurate performance outcomes. The study further tests the mediating role of environmental commitment and green process innovation (GPI) on these relationships. The proposed hypotheses are examined using the survey data from 173 manufacturing firms in India by partial least squares (PLS) approach. Findings show that environmental commitment mediates the effect of stakeholder and competitive pressures on I4 technologies. Further, results also show that GPI mediates between I4 technologies and performance. The findings provide insights for managers on how they can best respond to stakeholder and competitive pressures on sustainability and contribute towards sustainable development.

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  • Manjot Singh Bhatia & Saurabh Kumar, 2022. "Linking stakeholder and competitive pressure to Industry 4.0 and performance: Mediating effect of environmental commitment and green process innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 1905-1918, July.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:5:p:1905-1918
    DOI: 10.1002/bse.2989
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    2. Sulaiman Olusegun Atiku & Kristofine Aili Itembu-Naunyango & Olufemi Michael Oladejo, 2024. "Inclusive Leadership and Employee Engagement as Critical Drivers of Sustainability in Telecommunication Companies," Administrative Sciences, MDPI, vol. 14(6), pages 1-14, June.
    3. Cristina López-Cózar-Navarro & Tiziana Priede-Bergamini & Diego Cuello-de-Oro-Celestino, 2024. "Sustainable Practices in Manufacturing SMEs: The Importance of Technological Collaboration between Supply Chain Partners," Sustainability, MDPI, vol. 16(12), pages 1-16, June.
    4. Efthymia Iliopoulou & Aspasia Vlachvei & Eirini Koronaki, 2024. "Environmental Drivers, Environmental Practices, and Business Performance: A Systematic Literature Review and Future Research Directions," Sustainability, MDPI, vol. 16(11), pages 1-27, June.
    5. Han, Myat Su & Ma, Shuang (Sara) & Wang, Yonggui & Tian, Qinghong, 2023. "Impact of technology-enabled product eco-innovation: Empirical evidence from the Chinese manufacturing industry," Technovation, Elsevier, vol. 128(C).

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