Industry 4.0 Integration for Sustainability and Value Creation: Moderating Role of Digital and Environmental Strategy

Sajid Nazir, Arsalan Zahid Piprani, Sumona Mukhuty, Arvind Upadhyay, Jyri Vilko and Wai Chuen Poon

Business Strategy and the Environment, 2026, vol. 35, issue 2, 2192-2209

Abstract: This study investigates the combined impacts of Industry 4.0 (I4.0) technologies and digital transformation (DT) on sustainable consumption and production (SCP) and on the value creation (VC). It also examines the moderating influence of digital and environmental strategies on these outcomes. Grounded in the triple‐bottom‐line and resource‐based view theories, the study draws on survey data from 137 supply chain professionals in Malaysia's large‐scale manufacturing sector. Using Smart‐PLS structural equation modelling, the results reveal that I4.0 technologies exert a substantial positive effect, explaining a considerable share of variance in both value creation and SCP outcomes. Environmental strategy further strengthens the link between DT and VC, whereas digital strategy shows no moderating effect between I4.0 technologies and DT. These findings provide actionable insights for industry practitioners and policymakers, highlighting how technological and environmental alignment can simultaneously advance sustainability, economic performance and social value.

Date: 2026
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