Industry 4.0 technologies and international performance of SMEs: mediated-moderated perspectives

Abstract

Industry 4.0 techniques play a crucial role in an organizations success. This study uses dynamic capabilities theory and institutional theory to examine the association between industry 4.0 technologies and the international performance of small and medium enterprises (SMEs) with the mediating role of ambidextrous dynamic capabilities. Environmental dynamism and competitiveness are moderators between ambidextrous dynamic capabilities and SMEs international performance. Data was collected from 301 Malaysian exporting SMEs, and the Malaysia External Trade Development Corporation directory was used for the sampling frame. Partial Least Square Structural Equation Modeling is followed, and multiple regression is used for hypothesis testing. Industry 4.0 technologies, apart from machine learning, significantly influence SMEs international performance. Industry 4.0 technologies are positively related to ambidextrous dynamic capabilities. Ambidextrous dynamic capabilities significantly mediate between industry 4.0 technologies and SMEs international performance. Finally, environmental dynamism and environmental competitiveness strengthen the positive relationship between ambidextrous dynamic capabilities and SMEs international performance. This study has managerial implications, such as if the management wants to enhance SMEs international performance in their organizations, then there is a need to concentrate on Industry 4.0 technologies, ambidextrous dynamic capabilities, environmental dynamism, and environmental competitiveness. This initial study determines SMEs international performance through industry 4.0 technologies, ambidextrous dynamic capabilities, environmental dynamism, and environmental competitiveness in light of dynamic capabilities theory and institutional theory.

Keywords: Industry 4.0 Technologies, Ambidextrous Dynamic Capabilities, Environmental Dynamism, Environmental Competitiveness, SMEs International Performance