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Sustainability performance of digitalized manufacturing industry in COVID era: a comparative study between developed and developing economies

Mina Hemmati (Department of International Business, Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia)
Md Shah Newaz (Faculty of Economics, University of Rome Tor Vergata, Roma, Italy)
Muhammad Khalilur Rahman (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Pengkalan Chepa, Malaysia) (Angkasa- UMK Research Academy, Pengkalan Chepa, Malaysia)
Andrea Appolloni (Faculty of Economics, University of Rome Tor Vergata, Roma, Italy) (Cranfield University, Cranfield, UK) (National Research Council (CNR), Naples, Italy)
Suhaiza Zailani (Faculty of Business and Economics, University of Malaya, Kuala Lumpur, Malaysia)

International Journal of Emerging Markets

ISSN: 1746-8809

Article publication date: 27 December 2022

45

Abstract

Purpose

The study aims to identify the extent to which industry 4.0 (IR4.0) adoption impacts the sustainable manufacturing (SM) performance of the manufacturing industry, focusing on the comparative analysis between developed and developing economies amid coronavirus disease 2019 (COVID-19) pandemic.

Design/methodology/approach

The study proposes a conceptual model formed on seminal theories and literature using the cross-sectional design. For data collection, a purposive sampling method is used where 154 Malaysian (developing) and Australian (developed) manufacturing firms' data were collected. Partial least square-based structural equation modeling is employed to test the hypothesis and proposed research model.

Findings

This study finds that adoption of IR4.0 technologies does not directly influence the sustainability performance of the manufacturing industry, but rather the trajectories of SM (efficiency, flexibility, automation and big data and granularity) fully mediate the relationship between IR4.0 adoption and sustainability manufacturing performance. The comparative analysis between Australia and Malaysia shows no significant difference in the relationships or the framework; hence, the differences between developed and developing countries are not significant in this mechanism.

Originality/value

The study contributes to the insights of the managers regarding COVID-19 and the implementation of IR4.0 in the SM domain. The policymakers would further get better insights since the study pays attention to sustainable development goal, industry, innovation, infrastructure and responsible production.

Keywords

Citation

Hemmati, M., Newaz, M.S., Rahman, M.K., Appolloni, A. and Zailani, S. (2022), "Sustainability performance of digitalized manufacturing industry in COVID era: a comparative study between developed and developing economies", International Journal of Emerging Markets, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IJOEM-04-2022-0647

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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