Impact of Industry 4.0 Readiness on Innovation Performance in Mechanical Systems: Role of Digital Transformation and Process Change Management
DOI:
https://doi.org/10.31181/rme548Keywords:
Industry 4.0 Readiness, Digital Transformation, Innovation Performance, Process Change Management, Mechanical IndustryAbstract
Purpose: This study examines the impact of industry 4.0 readiness on innovation performance in the mechanical industry by analyzing the mediating role of digital transformation and the moderating role of process change management. The research addresses persistent inconsistencies in prior studies regarding why industry 4.0-ready firms achieve different innovation outcomes. Method: A quantitative, cross-sectional design was employed, with data collected from 266 engineers and sub-engineers working in mechanical industry organizations. Measurement scales were adopted from prior research. The proposed model was tested using partial least squares structural equation modeling (PLS-SEM) to assess direct, mediating, and moderating relationships among the variables. Findings: The results indicate that Industry 4.0 readiness significantly influences digital transformation and innovation performance. Process change management significantly moderates the relationship between industry 4.0 readiness and digital transformation, strengthening transformation outcomes. Additionally, digital transformation significantly mediates the relationship between industry 4.0 readiness and innovation performance, confirming its role as a key mechanism through which readiness translates into innovation outcomes. Originality/Implications: This study advances Industry 4.0 literature by empirically integrating readiness, transformation, and change management into a unified framework, offering theoretical clarity and actionable insights for innovation management in mechanical systems.
References
Akbari, M., Kok, S. K., Hopkins, J., Frederico, G. F., Nguyen, H., & Alonso, A. D. (2024). The changing landscape of digital transformation in supply chains: impacts of industry 4.0 in Vietnam. The International Journal of Logistics Management, 35(4), 1040-1072. https://doi.org/10.1108/IJLM-11-2022-0442
Alegre, J., Chiva, R., & Lapiedra, R. (2009). Measuring innovation in long product development cycle industries: an insight in biotechnology. Technology Analysis & Strategic Management, 21(4), 535-546. https://doi.org/10.1080/09537320902819247
Ali, K., & Johl, S. K. (2023). Driving forces for industry 4.0 readiness, sustainable manufacturing practices and circular economy capabilities: does firm size matter? Journal of Manufacturing Technology Management, 34(5), 838-871. https://doi.org/10.1108/JMTM-07-2022-0254
Amin, A., Bhuiyan, M. R. I., Hossain, R., Molla, C., Poli, T. A., & Milon, M. N. U. (2024). The adoption of Industry 4.0 technologies by using the technology organizational environment framework: The mediating role to manufacturing performance in a developing country. Business Strategy & Development, 7(2), e363. https://doi.org/10.1002/bsd2.363
Ansari, I., Barati, M., Sadeghi Moghadam, M. R., & Ghobakhloo, M. (2023). An Industry 4.0 readiness model for new technology exploitation. International Journal of Quality & Reliability Management, 40(10), 2519-2538. https://doi.org/10.1108/IJQRM-11-2022-0331
Ansari, I., Barati, M., Sadeghi Moghadam, M. R., & Ghobakhloo, M. (2025). Empowering Industry 4.0: systemizing readiness assessment and strategic roadmapping for digital transformation. Journal of Manufacturing Technology Management. https://doi.org/10.1108/JMTM-05-2024-0257
Antony, J., Sony, M., & McDermott, O. (2023). Conceptualizing Industry 4.0 readiness model dimensions: an exploratory sequential mixed-method study. The TQM Journal, 35(2), 577-596. https://doi.org/10.1108/TQM-06-2021-0180
Antony, J., Sony, M., McDermott, O., Jayaraman, R., & Flynn, D. (2023). An exploration of organizational readiness factors for Quality 4.0: an intercontinental study and future research directions. International Journal of Quality & Reliability Management, 40(2), 582-606. https://doi.org/10.1108/IJQRM-10-2021-0357
Aregbesola, M., & Oluwade, B. (2014). An Experimental Evaluation of Defect Prevention and Change Management in Software Process Optimization in the Nigerian Software Industry. ARPN Journal of Systems and Software, 4, 5-11. https://shorturl.at/sIDFH
Bhatti, M. A., & Absamatov, A. (2025). Adoption of Business Analytics as a Data-Driven Approach to Process Optimizations in Mechanical Manufacturing Companies' Operational Performance: Moderating role of Mechanical Technology Utilization. Reports in Mechanical Engineering, 6(2), 1-15. https://doi.org/10.31181/rme505
Brodeur, J., Deschamps, I., & Pellerin, R. (2023). Organizational changes approaches to facilitate the management of Industry 4.0 transformation in manufacturing SMEs. Journal of Manufacturing Technology Management, 34(7), 1098-1119. https://doi.org/10.1108/JMTM-10-2022-0359
Das, P., Perera, S., Senaratne, S., & Osei-Kyei, R. (2023). Paving the way for industry 4.0 maturity of construction enterprises: a state of the art review. Engineering, Construction and Architectural Management, 30(10), 4665-4694. https://doi.org/10.1108/ECAM-11-2021-1001
Dohale, V., Verma, P., Gunasekaran, A., & Akarte, M. (2023). Manufacturing strategy 4.0: a framework to usher towards industry 4.0 implementation for digital transformation. Industrial Management & Data Systems, 123(1), 10-40. https://doi.org/10.1108/IMDS-12-2021-0790
Farrukh Shahzad, M., Liu, H., & Zahid, H. (2025). Industry 4.0 technologies and sustainable performance: do green supply chain collaboration, circular economy practices, technological readiness and environmental dynamism matter? Journal of Manufacturing Technology Management, 36(1), 1-22. https://doi.org/10.1108/JMTM-05-2024-0236
Galanti, T., De Vincenzi, C., Buonomo, I., & Benevene, P. (2023). Digital transformation: Inevitable change or sizable opportunity? The strategic role of HR management in industry 4.0. Administrative Sciences, 13(2), 30. https://doi.org/10.3390/admsci13020030
Ghobakhloo, M., Iranmanesh, M., Foroughi, B., Tseng, M.-L., Nikbin, D., & Khanfar, A. A. A. (2025). Industry 4.0 digital transformation and opportunities for supply chain resilience: a comprehensive review and a strategic roadmap. Production Planning & Control, 36(1), 61-91. https://doi.org/10.1080/09537287.2023.2252376
Hansen, A. K., Christiansen, L., & Lassen, A. H. (2025). Technology isn't enough for Industry 4.0: on SMEs and hindrances to digital transformation. International Journal of Production Research, 63(18), 6585-6605. https://doi.org/10.1080/00207543.2024.2305800
Jankowska, B., Mińska-Struzik, E., Bartosik-Purgat, M., Götz, M., & Olejnik, I. (2023). Industry 4.0 technologies adoption: barriers and their impact on Polish companies’ innovation performance. European Planning Studies, 31(5), 1029-1049. https://doi.org/10.1080/09654313.2022.2068347
Kee, D. M. H., Cordova, M., & Khin, S. (2025). The key enablers of SMEs readiness in Industry 4.0: a case of Malaysia. International Journal of Emerging Markets, 20(3), 1042-1062. https://doi.org/10.1108/IJOEM-08-2021-1291
Khan, T., & Emon, M. M. H. (2025). Supply chain performance in the age of Industry 4.0: evidence from manufacturing sector. Brazilian Journal of Operations & Production Management, 22(1), 10-14488. https://doi.org/10.14488/BJOPM.2434.2025
Kliestik, T., Nagy, M., & Valaskova, K. (2023). Global value chains and industry 4.0 in the context of lean workplaces for enhancing company performance and its comprehension via the digital readiness and expertise of workforce in the V4 nations. Mathematics, 11(3), 601. https://doi.org/10.3390/math11030601
Kumar, L., & Sharma, R. K. (2025). Adapting to Industry 4.0: evaluating SMEs preparedness through a comprehensive digital readiness assessment maturity model by validating stakeholders’ perceptions. Business Process Management Journal. https://doi.org/10.1108/BPMJ-07-2024-0546
Maganga, D. P., & Taifa, I. W. R. (2023). The readiness of manufacturing industries to transit to Quality 4.0. International Journal of Quality & Reliability Management, 40(7), 1729-1752. https://doi.org/10.1108/IJQRM-05-2022-0148
Mansour, H., Aminudin, E., & Mansour, T. (2023). Implementing industry 4.0 in the construction industry-strategic readiness perspective. International journal of construction management, 23(9), 1457-1470. https://doi.org/10.1080/15623599.2021.1975351
Marrucci, A., Rialti, R., & Balzano, M. (2025). Exploring paths underlying Industry 4.0 implementation in manufacturing SMEs: a fuzzy-set qualitative comparative analysis. Management Decision, 63(6), 1936-1959. https://doi.org/10.1108/MD-05-2022-0644
Mittal, A., Kumar, V., Verma, P., & Singh, A. (2024). Evaluation of organizational variables of quality 4.0 in digital transformation: the study of an Indian manufacturing company. The TQM Journal, 36(1), 178-207. https://doi.org/10.1108/TQM-07-2022-0236
Pozzi, R., Rossi, T., & Secchi, R. (2023). Industry 4.0 technologies: critical success factors for implementation and improvements in manufacturing companies. Production Planning & Control, 34(2), 139-158. https://doi.org/10.1080/09537287.2021.1891481
Ribeiro, D. B., Coutinho, A. d. R., Satyro, W. C., Campos, F. C. d., Lima, C. R. C., Contador, J. C., & Gonçalves, R. F. (2024). The DAWN readiness model to assess the level of use of Industry 4.0 technologies in the construction industry in Brazil. Construction Innovation, 24(2), 515-536. https://doi.org/10.1108/CI-05-2022-0114
Tortorella, G., Prashar, A., Vassolo, R., Cawley Vergara, A. M., Godinho Filho, M., & Samson, D. (2024). Boosting the impact of knowledge management on innovation performance through industry 4.0 adoption. Knowledge Management Research & Practice, 22(1), 32-48. https://doi.org/10.1080/14778238.2022.2108737
Ul Zia, N., Burita, L., & Yang, Y. (2023). Inter-organizational social capital of firms in developing economies and industry 4.0 readiness: the role of innovative capability and absorptive capacity. Review of Managerial Science, 17(2), 661-682. https://doi.org/10.1007/s11846-022-00539-3
Vo, H. T., Nguyen, P. V., Nguyen, S. T. N., Vrontis, D., & Bianco, R. (2025). Unlocking digital transformation in Industry 4.0: exploring organizational readiness, innovation and firm performance in Vietnam. European Journal of Innovation Management, 28(5), 1943-1964. https://doi.org/10.1108/EJIM-03-2024-0273
Wankhede, V. A., & Vinodh, S. (2023). Benchmarking Industry 4.0 readiness evaluation using fuzzy approaches. Benchmarking: An International Journal, 30(1), 281-306. https://doi.org/10.1108/BIJ-08-2021-0505
Wu, C.-H., Chou, C.-W., Chien, C.-F., & Lin, Y.-S. (2024). Digital transformation in manufacturing industries: Effects of firm size, product innovation, and production type. Technological forecasting and social change, 207, 123624. https://doi.org/10.1016/j.techfore.2024.123624
Zamora Iribarren, M., Garay-Rondero, C. L., Lemus-Aguilar, I., & Peimbert-García, R. E. (2024). A review of industry 4.0 assessment instruments for digital transformation. Applied Sciences, 14(5), 1693. https://doi.org/10.3390/app14051693
Zhang, Y., Ma, X., Pang, J., Xing, H., & Wang, J. (2023). The impact of digital transformation of manufacturing on corporate performance—The mediating effect of business model innovation and the moderating effect of innovation capability. Research in International Business and Finance, 64, 101890. https://doi.org/10.1016/j.ribaf.2023.101890
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Reports in Mechanical Engineering
This work is licensed under a Creative Commons Attribution 4.0 International License.