Exploring the role of Industry 4.0 capabilities in managing supply base complexity and enhancing supply chain agility

Purpose Grounded in organizational information-processing theory, this study aims to explore the interrelationship between Industry 4.0 (I4.0) capabilities, supply base complexity, and supply chain agility. Design/methodology/approach Data were collected from 338 Spanish focal companies. Analysis was conducted using cluster analysis and analysis of variance. Findings Results reveal that I4.0 exploration, I4.0 exploitation, and horizontal complexity are positively associated with supply chain agility, while delivery complexity is negatively associated. However, when horizontal complexity is low or delivery complexity is high, companies with greater I4.0 exploration and exploitation capabilities achieve significantly higher supply chain agility than those with lower I4.0 exploration and exploitation capability levels. Practical implications Managers can enhance supply chain agility by leveraging I4.0 capabilities, particularly in environments with low horizontal complexity or high delivery complexity. Originality/value The findings advance our understanding of how supply base complexity interacts with I4.0 capabilities to influence supply chain agility and highlight complexity's role as a double-edged sword.