The influence of Industry 4.0 resources on logistics capabilities to optimize remanufacturing and business performance

Purpose This study aims to demonstrate the influence of Industry 4.0 (I4.0) adoption on improving logistics capabilities to achieve remanufacturing operations and business logistics performance. Design/methodology/approach This research uses a deductive survey-based research approach. A structured questionnaire was used to collect data from managerial-level employees associated with logistics functions from 121 manufacturing firms. The partial least square method was used to conduct structural equation modeling to test the hypothesis empirically. Findings The analysis revealed that using I4.0 improves the ability to achieve higher levels of logistics capabilities (i.e. instrumented and intelligent logistics). Moreover, I4.0 integration with instrumented and intelligent logistics capabilities positively impacts business logistics optimization. On the other hand, intelligent logistics directly and positively impacts remanufacturing operational performance, whereas instrumented logistics does not reflect any significant influence on remanufacturing performance. Originality/value This study is one of the limited studies on the focus area and is an effort to fulfill an identified gap in applying innovative logistics capabilities using I4.0 technologies.