ABSTRACT

This chapter aims at investigating the moderating role of customers' and suppliers' involvement in the association between Industry 4.0 (I4.0) technologies adoption and performance improvement. We conducted a survey with 147 Brazilian manufacturing companies to capture the improvement of four performance indicators, along with the implementation level of customers' and suppliers' involvement practices, and 10 digital technologies related to I4.0. The data was analyzed using exploratory factor analysis via principal component analysis and ordinary least square regression analysis. Our findings indicate that the effect of I4.0 technologies related to product development and service innovation on performance improvement is significantly enhanced when companies actively involve their customers. In turn, I4.0 technologies that focus on manufacturing processes have their impact on performance improvement reduced when customers are extensively engaged. Surprisingly, the involvement of suppliers does not seem to moderate the impacts of I4.0. Determining the effect of the concurrent adoption of I4.0 technologies with practices that aim to involve customers and suppliers in manufacturing companies provides a deeper comprehension of the benefits and challenges that the fourth industrial revolution faces to entail greater performance achievements.