Adoption of fourth industrial revolution technologies towards achieving environmental, social and governance agenda for firm competitiveness

Awal, Iddrisu Mohammed (2025) Adoption of fourth industrial revolution technologies towards achieving environmental, social and governance agenda for firm competitiveness. PhD thesis, UTAR.

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Abstract

A report by the Malaysia Digital Economy Corporation (MDEC) reveals that 74% of businesses struggle with digital adoption and management, leading to over 30,000 business closures since the COVID-19 pandemic. Despite the government’s IR4.0 policy, challenges such as a lack of innovation culture, sustainability practices, skilled talent, and resources persist. This study examines the impact of TOE (technological, organizational, and environmental) factors on IR4.0 adoption and how it influences firms’ competitiveness and ESG practices. It also explores the moderating role of organizational culture in fostering digital transformation for industrial sustainability in Malaysia. Using a mixed-method approach, the study collected quantitative data from 268 respondents across five Malaysian states (Selangor, Kuala Lumpur, Perak, Johor, and Penang) and analyzed it using Partial Least Square-Structural Equation Modelling (PLS-SEM). Additionally, qualitative insights were gathered from 14 semi-structured interviews with representatives from 14 manufacturing and service firms. Findings indicate that technological and environmental factors positively influence IR4.0 adoption technologies, while organizational factors show no significant effect. Although IR4.0 adoption technologies enhance competitiveness, they do not directly impact ESG practices due to slow adoption rates and a lack of innovative culture. Thematic analysis reveals key adoption drivers, including productivity gains and waste reduction, alongside barriers such as high costs, resistance to change, and limited expertise. While IR4.0 technologies contribute to ESG by reducing waste and emissions, broader organizational commitment is essential for meaningful ESG outcomes. The study extends the theoretical model, offering nuanced insights into IR4.0 adoption. It reveals that technological factors can hinder competitiveness, while organizational culture enhances it, and IR4.0 adoption alone does not guarantee ESG practices. Practical implications include the need for strategic planning, workforce training, and cultural alignment to leverage IR4.0 for longterm growth. Institutional changes, enhanced digital infrastructure, and targeted training programs are crucial for advancing Malaysia’s digital transformation and sustainable industrial growth. Keywords: Digitalization; Digital Technologies; Industrial Revolution 4.0 (IR4.0); Technology Adoption; Sustainable Development. Subject Area: HD28-70 Management. Industrial management

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