From quality management to sustainable advantage: the role of industry 4.0 in education

Purpose This study aims to evaluate the role of digital capabilities, Industry 4.0 readiness and total quality management (TQM) practices in influencing sustainable competitive performance (SCP) in Pakistan’s higher-education institutions (HEIs). Design/methodology/approach A quantitative research method was applied, and quantitative data were collected from 326 employees working in Pakistan’s HEIs. Statistical analysis was run to assess the characteristics of the variables. Finally, PLS-SEM was implemented to test the synthesised hypotheses. Findings The findings obtained from this research showed that quality information, employee training and management commitment have a significant positive relationship on SCP. In contrast, teamwork was found to have an insignificant association with SCP. However, Industry 4.0 readiness supported the indirect relationships among these variables. At the same time, digital capabilities also showed a significant mediating effect in the association between quality information and performance. Moreover, an insignificant relationship was observed between employee training and digital capabilities. Practical implications This study encourages the HEIs to foster a digital culture to ensure an effective alignment between employee training and leadership support in association with technology. This may contribute to enhanced sustainable competitive performance. Administrators and policymakers can also yield important insights and plan digital transformation initiatives. Originality/value This study uniquely integrates TQM, digital capabilities and Industry 4.0 readiness within the context of HEIs. It provides novel insights regarding the digital transformation and sustainable performance in HEIs of Pakistan.