DOI: 10.1108/scm-08-2025-0826 ISSN: 1359-8546

Dynamic capabilities as a catalyst: enhancing supply chain integration and sustainability through industry 4.0 technologies

Sajjida Reza, Raja Usman Khalid, Stefan Seuring

Purpose

This study aims to examine how Industry 4.0 technologies influence supply chain integration (SCI) and sustainability performance through the enabling role of dynamic capabilities. It addresses how digital tools are embedded into organizational routines to support integration and sustainable outcomes in an emerging economy context.

Design/methodology/approach

A qualitative case study methodology was used, involving semi-structured interviews with senior managers across manufacturing firms. Resultantly, seven themes were extracted by capturing emerging patterns inherent within interviews.

Findings

The study finds that Industry 4.0 tools enhance SCI when embedded within dynamic routines that enable sensing, seizing and transforming. These capabilities support data-driven decision-making, stakeholder alignment, and process adaptability, improving cost efficiency, environmental performance and social accountability.

Research limitations/implications

The study is limited to a single-country context. Future research could explore cross-country comparisons or longitudinal designs to examine the evolution of integration capabilities.

Practical implications

Managers should embed Industry 4.0 tools within adaptive and collaborative routines to drive sustainable performance. Investment in capability development, stakeholder engagement platforms and iterative planning mechanisms is essential for effective digital transformation.

Originality/value

The study reconceptualizes integration as a behavioral and context-sensitive process shaped by dynamic capabilities. It offers empirical insight into how firms in resource-constrained settings adapt digital tools to meet sustainability objectives through integrated routines.

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