Leveraging Industry 4.0 and Circular Economy through the Developmental Cultural Lens – Driving a Competitive Advantage in the Manufacturing Industry
Lunch Seminar in presence
Building BL26/B – Room 0.19 (ground floor)
Department of Management, Economics and Industrial Engineering
Via R. Lambruschini, 4/B
Birmingham City University, UK
Purpose – The transition toward Industry 4.0 and the Circular Economy (CE) is increasingly important for the manufacturing sector in the emerging economy context where culture plays an important role. However, existing studies fail to clearly understand how these can be leveraged to achieve competitive advantage. This study, therefore, explores how organisational culture, i.e., developmental culture, influences the transition toward Industry 4.0 and the CE, enhancing competitive advantage.
Design/ Methodology/ Approach – The study adopts a quantitative approach following the deductive philosophy. The findings are based on the survey responses from 354 manufacturing firms in Thailand, a developing country in ASEAN. The data was analysed using the structural equation modelling approach to explore the mediation and direct relationships.
Findings – The results indicate a positive influence of developmental culture on Industry 4.0 and CE adoption. We also show that firms gain competitive advantages from their adoption. We further identify a partial mediation relationship between Industry 4.0, the CE, developmental culture and competitive advantage.
Practical implications – This study points out the positive role of developmental culture on Industry 4.0 and the CE transition in the emerging economy context, helping manufacturing firms better understand the required cultural conditions that support the transition. Industrialists and policymakers can use the findings to support manufacturing companies in improving competitive advantage.
Originality – This is one of the first empirical studies to comprehensively understand Industry 4.0 and CE transition through a developmental cultural lens and show how this translates to a competitive advantage. We link the developmental culture as the firm’s intrinsic factor in Industry 4.0 and the CE implementation. The mediation result fills the knowledge gap, enhancing the understanding of the influence of the developmental culture in the manufacturing sector in a developing country context.
Vikas Kumar is an Associate Dean for Research, Innovation and Enterprise and Professor of Operations and Supply Chain Management at Birmingham City University, UK. He holds a PhD in Management Studies from Exeter Business School, UK and an Engineering degree in Metallurgy and Materials Science from Ranchi University, India. Prof Kumar is a leading operations and supply chain management researcher and has published more than 250 articles in leading high-impact international journals and conferences, including the Journal of Business Research, International Journal of Production Research, International Journal of Production Economics, Supply Chain Management: an International Journal, Management Decision, Computers & Industrial Engineering, Journal of Business Research, Expert System with Applications, and Production Planning & Control. His papers have appeared in A*/A ABDC and 4*/3* ABS-ranked journals. He has an excellent research track record with 13000+ citations on Google Scholar, an H-index of 62, and an i-10 index of 154. He serves on the editorial board of several journals, including the Journal of Business Logistics, International Journal of Physical Distribution and Logistics Management and Business Strategy and the Environment. He has also successfully guest-edited several special issues in reputed international journals (ABS 4/3*/2*/1*) and secured over £1 million in funding from various research agencies such as EPSRC, Innovate UK, British Academy, Newton Fund and British Council. His research interests include Sustainability, Industry 4.0, Circular Economy, Sustainable and Digital Supply Chain Management, and Operational Excellence.