Dynamic capabilities and institutional theories for Industry 4.0 and digital supply chain

This study explores the firm’s orientation in adopting Industry 4.0 and digital supply chain. Institutional theory and dynamic capabilities view theory are used to explain the theoretical framework. Further, it is tested, if any institutional pressure moderates the orientation relationship to Industry 4.0 adoption intention and digital supply chain. We collected the data from 256 respondents working in the Indian manufacturing firms to test the theoretical framework. The analysis of data indicates that in terms of institutional pressures, only coercive pressure moderates the relationship of exploration and exploitation orientation to the intentions of adopting Industry 4.0 and digital supply chain. The regulatory bodies and accreditation agencies demand the firms to be part of the digital economy and adopt advance systems to attain the sustainable goals under Industry 4.0 framework and components of digital supply chain. Practicing managers and firms can adopt findings of the study, to follow the adoption of Industry 4.0 in digital supply chain economy.