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Antecedents of Industry 4.0 capabilities and technological innovation: a dynamic capabilities perspective

Ayman wael AL-Khatib (Department of Business Administration, Luminus Technical University College, Amman, Jordan)
Ahmed Shuhaiber (College of Technological Innovation, Zayed University, Dubai, United Arab Emirates)
Ibrahim Mashal (Applied Science Private University, Amman, Jordan)
Manaf Al-Okaily (School of Business, Jadara University, Irbid, Jordan)

European Business Review

ISSN: 0955-534X

Article publication date: 7 December 2023

Issue publication date: 30 May 2024

666

Abstract

Purpose

This paper aims to empirically examine the impact of dynamic capabilities on Industry 4.0 capabilities in small and medium enterprises (SMEs) in Jordan. It also aims to examine the potential impact of industry 4.0 capabilities on technological innovation.

Design/methodology/approach

Data were collected from 210 respondents who work and own SMEs in Jordan. SmartPLS software based on the partial least squares-structural equation modeling approach was used to test hypotheses.

Findings

The findings reveal the positive effects of the three components of dynamic capabilities, including sensing, seizing and reconfiguring, on Industry 4.0 capabilities. They also confirm the positive effect of Industry 4.0 capabilities on technological innovation.

Originality/value

This study provides valuable practical implications and enriches the literature on the determinants of Industry 4.0 capabilities and its role in developing the dynamic capabilities of SMEs, such as technological innovation.

Keywords

Acknowledgements

Since submission of this article, the following author(s) have updated their affiliations: Ayman wael AL-Khatib is at the Department of Business Administration, Luminus Technical University College, Amman, Jordan and School of Management, Universiti Sains Malaysia, George Town, Malaysia and Ibrahim Mashal is at the Applied Science Private University, Amman, Jordan and Faculty of Science and Information Technology, Al-Zaytoonah University of Jordan, Amman, Jordan.

Citation

AL-Khatib, A.w., Shuhaiber, A., Mashal, I. and Al-Okaily, M. (2024), "Antecedents of Industry 4.0 capabilities and technological innovation: a dynamic capabilities perspective", European Business Review, Vol. 36 No. 4, pp. 566-587. https://doi.org/10.1108/EBR-05-2023-0158

Publisher

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Emerald Publishing Limited

Copyright © 2023, Emerald Publishing Limited

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