Industry 4.0 Adoption as a Catalyst for Innovation and International Performance: Organizational Globalization Motive as Moderator

Abstract

Globalization motivates organizations to adopt modern technologies in order to improve their efficiency. These technologies may impact not only exploration innovation (EXO) but also exploitative innovation (EXI) capabilities, while enhancing organizations’ international performance (IP). Previous studies have mainly focused on examining the impact of technology on sustainability and firm performance. However, these studies have not investigated how adopting these technologies can impact a firm’s innovation capabilities and IP. Bridging this gap, the present study investigates the impact of Industry 4.0 adoption (IA) on EXO, EXI and IP. It also explores the moderating impact of organizational globalization motive (OGM). The data were collected from 217 respondents through a structured questionnaire and analysed using PLS-SEM 3.0 software. The results revealed a positive and significant relationship between IA and EXO, EXI and IP. Additionally, a considerable moderating impact of OGMs has been identified on EXO and EXI. The results will help practitioners in comprehending the significance of IA for their organizations’ IP, especially from a globalization point of view. It also theoretically contributes by advancing the resource-based view and innovation ambidexterity theories in the domain of Industry 4.0.