Analyzing top management commitment, Industry 4.0 technologies and sustainable manufacturing practices through institutional theory and practice-based view

Purpose The present study develops a theoretical framework based on the institutional theory and practice-based view. This study analyzes the role of top management commitment (TMC) in explaining the impact of institutional pressures (IP) on sustainable manufacturing practices (SMP). It also aims to explain the impact of Industry 4.0 technologies (I4T) and SMP on sustainable organizational performance (SOP). Design/methodology/approach This paper develops and evaluates the theoretical framework using covariance-based structural equation modeling (SEM) based on the data collected from 291 respondents representing 234 manufacturing companies. Findings The findings reveal the mediating effect of TMC between IP and SMP, and the mediating effect of SMP between I4T and SOP. TMC positively impacts the adoption of both I4T and SMP. Findings also discovered that there is a serial mediation of TMC and I4T between IP and SMP. Further, results show that I4T-enabled SMP positively affects SOP. Originality/value The current study highlights the importance of looking beyond mere compliance with external forces. It posits that sustainability concerns can be addressed proactively through top management’s strategic adoption of Industry 4.0 technologies and SMP. Further, this study demonstrates how companies can achieve better sustainable performance by adopting “imitable, transferable and commonly available practices”.