How energy efficiency, smart factory, and mass personalization affect companies in industry 4.0

Abstract

The concept of industry 4.0 has significant potentials to enhance organizational performance so as to cope with industrial change and to ensure market competitiveness in the world coordinated by industrial and scientific organizations using technical, economic, and sociopolitical parameters. The objectives of this research are to investigate the effects of energy efficiency improvement, smart factory, and mass personalization on organizational performance; describe the causality between the independent and the response variables; develop a new model and build theories based on Partial Least Squares Structural Equation Model (PLS-SEM); and generate specific propositions for industrial practitioners to improve their organizational performance. The study validated and assessed the proposed model using discriminant validity, reliability of measures, item loadings, and convergent validity based on the data gathered from employees of various industrial organizations. This study found that energy efficiency improvement, smart factory, and mass personalization were key driving factors on organizational performance in industry 4.0.