Industry 4.0 technologies adoption and competitive advantage: Mediating roles of circular economy and sustainable manufacturing in emerging economies

In the rapidly evolving landscape of modern industry, digital transformation is a primary driver of change, and firms must face the dual challenge of enhancing competitiveness and promoting sustainability. This study addresses this critical intersection by examining the impact of industrial digital transformation through Industry 4.0 technologies on competitive advantage, with circular economy and sustainable manufacturing as mediating factors, within Thailand's electrical and electronics industry. Employing a quantitative survey approach, data were collected from 240 production managers and covariance-based structural equation modeling (CB-SEM) was used for analysis. The findings reveal that Industry 4.0 technologies adoption has a significant direct effect on competitive advantage. Additionally, the study demonstrates a strong and significant positive indirect effect, demonstrating that, within an emerging economy context, circular economy and sustainable manufacturing are key mediating variables in the relationship between Industry 4.0 technologies and competitive advantage, extending the traditional static Resource-Based View (RBV) by revealing how the dynamic capabilities of the circular economy and sustainable manufacturing transform a firm's technology resources into a competitive advantage within the context of Thailand's Eastern Economic Corridor (EEC). The findings offer a unique contribution distinct from prior research in developed countries, as developing countries face more limited resources and have environmental pressures, their competitive advantage creation mechanisms are unique to those in developed countries. This study provides valuable managerial implications, emphasizing the strategic importance of integrating these principles to promote long-term, sustainable competitive advantage.