ABSTRACT
PurposeThe 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/approachThe 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.FindingsThis 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/valueThe 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.
ABSTRACT
PurposeIntangible assets (IA) have been described as a multidimensional concept. However, there is a gap in research that considers IAs as a higher-order construct (HOC). Therefore, this paper aims to focus on demonstrating how IAs can be properly specified and measured as HOCs, given IA’s four major dimensions in small- and medium-sized enterprises (SMEs).Design/methodology/approachA HOC model is applied using a partial least squares–structural equation modeling (PLS-SEM) repeated-indicator approach. This approach helps validate the argument for considering IAs as HOCs by testing the basic requirements of the construct model.FindingsThe main finding from testing the model’s reliability, validity, multicollinearity and redundancy analysis indicates that the establishment of IAs as a HOC model is valid. Additionally, the simulation study results support the use of the proposed model.Research limitations/implicationsThe proposed model is believed to enhance the proper understanding of IAs and their relationship with organizational outcomes. Additionally, the model can inform organizational management of the integrative approach needed to effectively synchronize their strategic resources for improved performance of entrepreneurially growing SMEs.Originality/valueThis paper is the first to show the measurement of IAs as HOCs using PLS-SEM, based on IA’s updated dimensions. The authors believe that this paper paves the way for future discussion on IA measurement to conduct rigorous impactful studies with larger sample size.