Quality 4.0 capabilities and sustainable performance: the mediating roles of digital transformation and organizational ambidexterity

Purpose Public sector organizations are facing rising pressure to deliver efficient, transparent and citizen-centered services while meeting sustainability expectations. Although Total Quality Management (TQM) offers a proven philosophy for continuous improvement, it often lacks the digital mechanisms required for data-driven governance. In parallel, Quality 4.0 introduces advanced technologies (e.g. analytics, automation, AI and IoT) that can modernize quality practices, yet evidence remains limited on how these capabilities translate into sustainable performance in public service settings. Addressing this gap, this study examines how Quality 4.0 capabilities drive sustainable performance in public sector organizations through two key transformation pathways: digital transformation and organizational ambidexterity, grounded in the Resource-Based View (RBV) and Dynamic Capability View (DCV). Design/methodology/approach Survey data were collected from 190 managers and section heads in UAE public sector organizations undergoing digital initiatives between October and December 2025 using a Google Form questionnaire. All constructs were measured using five-point Likert-scale items adapted from validated studies. The proposed model was tested using Partial Least Squares Structural Equation Modeling (PLS-SEM) in SmartPLS 4, assessing both direct and mediation effects through bootstrapping procedures. Findings The results show that Quality 4.0 capabilities strongly enable digital transformation (ß = 0.449, p < 0.001) and organizational ambidexterity (ß = 0.371, p < 0.001) in public sector organizations. Mediation analysis confirms that digital transformation significantly mediates the relationship between Quality 4.0 capabilities and sustainable performance (indirect ß = 0.120, p < 0.001). Likewise, organizational ambidexterity exerts a significant mediation effect (indirect ß = 0.190, p < 0.001), indicating that sustainability gains are strengthened when public organizations balance exploitation (process reliability and efficiency) with exploration (innovation and service redesign). Originality/value This research provides empirical evidence from the UAE public sector for a dual-mediation model linking Quality 4.0 capabilities to sustainable performance via digital transformation and organizational ambidexterity, extending RBV/DCV explanations of how digital-quality integration generates public value and sustainability outcomes in government contexts.