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From smart factories to sustainable futures: how Industry 4.0 enhances green supply chains

Muhammad Jameel Labaran,Tariq Masood

Published 2025 in Supply Chain Management

ABSTRACT

This study aims to investigate the influence of Industry 4.0 adoption on sustainability performance and the mediating role of green supply chain management practices within African renewable energy supply chains, underpinned by the resource-based view and natural resource-based view. Using partial least squares structural equation modeling, survey data gathered from mid- and senior-level managers within the renewable energy sector in Africa was analyzed. Findings reveal that Industry 4.0 technologies do not directly improve sustainability performance. Instead, their value lies in facilitating green supply chain management adoption, which significantly enhances environmental, economic and social outcomes. Notably, green supply chain management fully mediates the Industry 4.0–sustainability relationship, suggesting that technological innovation be embedded in structured sustainability strategies for effectiveness. Theoretically, this study adds a nuanced perspective to resource-based view and natural resource-based view by demonstrating that Industry 4.0 is an enabling capability rather than a standalone driver of sustainability, especially in resource-constrained settings. Policy interventions, infrastructure investments and skills development are vital for unlocking the full sustainability potential of Industry 4.0 in African renewable energy supply chains.

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