Industry 4.0 technologies and firm innovation performance: dual mediators’ exploration in emerging market

Business management nowadays heavily relies on Industry 4.0 (I4.0) incremental enablers for more efficient operations by initiatives known as circular economy practices (CEP) and green supply chain innovation (GSCI). I4.0 technologies play a crucial role in driving innovation performance. This study aims to explore both the direct contribution of I4.0 technologies to firm innovation performance (FIP) and the indirect one through CEP and GSCI as mediators. An empirically based approach has been employed. Covariance-based structural equation modeling (CB-SEM) was adopted to analyze data from Vietnamese firms. Based on 263 valid responses, the findings interestingly revealed a negligible direct effect but highlighted the indirect roles of I4.0 technologies in improving. Also, CEP and GSCI not only individually act as mediators facilitating the linkage between I4.0 technologies and FIP, but they also simultaneously generate a serial mediation effect. This study is among pioneering efforts to investigate the interplay of I4.0 technologies, CEP, GSCI, and FIP in an emerging context like Vietnam. The results shed light on the essence of integrating technological advancement and sustainable orientations in business management towards innovation and competitive performance.