The role of industry 4.0 and ambidexterity on the SCM-SME performance link: Australia evidence

Purpose This paper aims to investigate the relationships amongst supply chain management (SCM) implementation, Industry 4.0 technologies, organisational ambidexterity and SMEs’ performance in Australia. It further examines whether Industry 4.0 technologies and organisational ambidexterity have mediating effects on such relationships. Design/methodology/approach Research data were collected through a cross-sectional survey of a sample of 204 SMEs from different industries in Australia. The overall model fit and hypotheses were tested through confirmatory factor analysis (CFA) and structural equation modelling (SEM). Findings The statistical results reveal that successful SCM implementation, Industry 4.0 technologies and organisational ambidexterity approach through exploiting existing competencies and exploring new opportunities improve SMEs' performance in Australia. In addition, Industry 4.0 technologies and organisational ambidexterity are found to mediate the relationship between SCM implementation and SMEs’ performance. Originality/value The coexisting impacts of SCM implementation, Industry 4.0 technologies and organisational ambidexterity on SMEs’ performance, and how Industry 4.0 technologies and organisational ambidexterity mediate and affect the relationship of SCM implementation and SMEs’ performance have not been addressed previously in Australia. This study, thus, addresses these research gaps, which are expected to be beneficial to managerial practices to support SMEs in their strategic planning and performance enhancement goals.