The Impact of the Fourth Industrial Revolution on Business Performance and Sustainability: A Literature Review ()
1. Introduction
The Fourth Industrial Revolution, often referred to as Industry 4.0 or the Industrial Internet, is redefining the way manufacturing companies operate. Thus, it integrates cutting-edge technologies such as the Internet of Things, artificial intelligence, and also data analysis to improve various operations. Indeed, these terms are fairly new; it was first launched in Germany in 2011 and represents the current production paradigm, which combines information and communication technologies with digital manufacturing technologies (Hyoung Seok Kang, 2016; Trentesaux, 2016) , presents that Industry 4.0 has been defined as a means that allows the creation of intelligent factories and products so that components, machines and digital devices can communicate with each other in order to self-manage production lines and provide high performance in terms of product design, production and logistics systems. (Shrouf, 2014) shows that the application of Industry 4.0 technologies can achieve several benefits such as real-time monitoring and control of important production parameters such as production status, energy consumption, material flows, customer orders and supplier data. In addition, these technologies facilitate customer relationships and communication through connectivity between customers and products; therefore, organizations are able to develop products that meet the needs of real customers (Benkarouba & Benbouzian, 2022) . Indeed, the ultimate goal of Industry 4.0 is to produce and generate smart and connected factories, where systems and products communicate with each other autonomously to optimize and improve production processes and performance. Beyond simply improving operational efficiency, Industry 4.0 has profound twists and turns on the sustainability and performance of manufacturing companies. However, in this article, we will look at the impact of Industry 4.0 on these two crucial aspects of the industry. We will explore how this technological revolution promotes a more efficient use of resources, a reduction in environmental impact, and an improvement in overall sustainability. In addition, we will analyze how Industry 4.0 increases productivity and strengthens the quality, flexibility and responsiveness of companies, thus contributing to increased performance. However, the main objectives of this study are multiple and aim to provide an in-depth understanding of the impact of the Fourth Industrial Revolution on business performance and sustainability. First, this research aims to examine the transformations brought about by this revolution, with a particular focus on the key technologies that characterize it, such as artificial intelligence, the Internet of Things, robotics, and blockchain. Second, it seeks to analyze the implications of these technological shifts on business performance, exploring how digital transformation, technological innovation, and change management impact their operating models. Third, the study focuses on the dimensions of sustainability, both from an economic and environmental perspective, in order to understand how businesses can thrive while integrating responsible practices. Finally, the goal is to identify the challenges companies face when implementing Industry 4.0, including upfront investment, data security management, and ongoing employee training. Finally, this article highlights the opportunities that Industry 4.0 presents for companies that want to remain competitive in a changing world while opting for a more sustainable and efficient future. In short, these objectives bring together an understanding of the strategic and operational challenges that companies face in this era of technological transformation. This work is divided into two main parts: the first will focus on the literature review on the impact of the fourth industrial revolution on business performance and sustainability and will begin with an in-depth exploration of the transformations induced by the fourth industrial revolution in the global economic fabric. We will take a detailed look at the key technologies that characterize this revolution, such as artificial intelligence, the Internet of Things, robotics and blockchain, and evaluate how these advances are redefining business models and the second part on the conclusion that synthesizes the main findings and paves the way for perspectives. We will highlight the main contributions of this study, highlighting the practical implications for policymakers and practitioners. We will discuss strategic courses of action that companies can consider to optimize their performance while integrating sustainable practices in the era of the Fourth Industrial Revolution. Finally, we will identify potential gaps in the current understanding of this ever-evolving field and propose directions for future research to remain at the forefront of analyzing issues related to this major technological transformation.
2. Literature Review
Today, the Sustainable Performance and Industry 4.0 technologies (I4T) are popular topics among academics and practitioners in recent years. Organizations have shifted from traditional operational methods to managing sustainable operations to improve sustainable performance. Various factors affecting sustainable operations have been identified in the relevant literature. They can be categorized into six a priori dimensions: senior management support, regulation, financial expectations, competitive advantage, stakeholder demands, and technology (Bansal & Roth, 2000) . Technological, organizational and environmental dimensions are needed to effectively manage sustainable operating practices necessary for the economy, social and environmental sustainability (Alraja et al., 2022; Yavuz et al., 2023; Tornatzky and Fleischer, 1990) show that the technology-organization-environment framework is widely used in the adoption of technology at the firm level. Indeed, (Kumar & Krishnamoorthy, 2020) present that the technological vision is divided into three parts for the implementation of technological innovations: technological infrastructure, technological culture, and technological capabilities. The organizational vision includes the size of the firm, the organizational structure, internal resources, technological skills, senior management support, and the allocation of financial resources (Kuan & Chau, 2001) . Stakeholder demands, competitive pressures, and regulations explain the environmental vision (Pan & Jang, 2008; Aboelmaged, 2018) and (Chege & Wang, 2020; Yavuz et al., 2023) .
(Alraja et al., 2022) noted that technology-organization-environment factors represent crucial inputs for green practices leading to sustainable performance. However, research by (Shee et al., 2021) has shown that the use of information and communication technologies and the capacity of information technology have a positive effect on smart logistics. In addition, (Dadhich & Hiran, 2022) also reported that economic, social, technological, and organizational factors were positively related to organizational performance via the environmental sustainability of firms (Chege & Wang, 2020; Alraja et al., 2022; Aboelmaged, 2018; Hanna et al., 2021; Shee et al., 2021; Yavuz et al., 2023; Karmaker et al., 2022; Contini et al., 2023) .
(Al-Ashmori et al., 2022) show that there are different models that explain the acceptance and implementation of innovative applications, such as the Technology Readiness Index, the Planned Behavior Theory, the Task Fit Technology Model, the Unified Technology Acceptance and Use Theory, the Technology Acceptance Model. Indeed, (Verma et al., 2022) show that the technological dimension coincides with the results of industrial revolutions in terms of operational practices. The current industrial revolution is known as Industry 4.0, I4T thus enables mass customization by increasing flexibility, facilitates individualized products by shortening time-to-market, increases productivity by reducing resource consumption, and improves quality, efficiency (Satyro et al., 2022) and sustainable performance (Gupta et al., 2021; Kamble et al., 2020, 2021) made a compelling case that economic, social, and environmental sustainability with I4T-trained smart manufacturing systems creates a competitive advantage for organizations to have effective MS. (El Baz et al., 2022) showed the importance of management support, effective governance, and waste reduction as key drivers of Industry 4.0 initiatives focused on sustainability. In contrast, (Verma et al., 2022) presented that the most significant barriers to Industry 4.0 in sustainability were organizational factors, followed by environmental, technological, economic, social, and institutional factors. In short, not only I4T, but also technological, organizational and environmental factors must be evaluated together in terms of sustainable performance. Indeed, (Satyro et al., 2022) presented that the use of Industry 4.0 offers flexibility in the production process and therefore individual mass production, reducing lead times, increasing efficiency, decreasing resource consumption and improving quality. Nevertheless, (Verma et al., 2022) noted that I4Ts play a very important role in the development of production digitalization and there are also significant challenges related to the technological and organizational levels as well as the management perspective. Indeed, according to the technology-organization-environment model, organizational barriers represent the need for high levels of investment and adaptive changes at the organizational and process level, as well as the lack of skilled labor, digital strategy, and a clear understanding of the benefits of IoT (Internet of Things). However, these environmental barriers result from the lack of standardization efforts, communication and information technology infrastructure, regulatory framework, and legal and contractual safeguards. Technology barriers highlight the lack of knowledge management and data literacy systems, seamless integration and interoperability capabilities, and out-of-the-box solutions, as well as the need for adaptive implementation of modernization and consideration of security, safety, and privacy issues (Senna et al., 2022; Verma et al., 2022; Yavuz et al., 2023) . However, (Verma et al., 2022) found that I4Ts can only become sustainable when they positively affect various components such as technological, economic, organizational, and management levels. Today, the core technologies of Industry 4.0 are modern technological innovations such as IoT, Industrial IoT, cyber-physical systems, cloud computing, industrial robotics, big data, data analytics, Artificial Intelligence, Augmented Reality, Digital Twin technology, simulation, additive manufacturing., cybersecurity, virtual reality, semantic technologies, blockchain, the internet of people, the internet of services, the internet of everything and the internet of data, which have been developed over the past decades but have been commercially available in the last decade (Ghobakhloo et al., 2021, Verma et al., 2022, Yavuz et al., 2023) . Show that augmented reality, cyber-physical systems, big data analytics, additive manufacturing, IoT, autonomous robots, and cloud computing technologies are approached as I4Ts in terms of sustainability, given the structure of technology development zones in Turkey. (Yavuz et al., 2023) show that a performance perspective is needed for all stakeholders along the value chain in order to achieve their strategic objectives. Unlike the traditional performance perspective, the vision of sustainable performance includes economic, social and environmental indicators. Indeed, economic performance is extremely important to create an ecosystem for business process operations and meet stakeholder expectations (Gupta et al., 2020; (Habidin et al., 2015) also present the importance of economic sustainability in the success of an organization and the measurement factors related to sustainable economic performance such as reduced material purchase costs, energy consumption costs, waste treatment fees and fines for environmental accidents. The literature (Abid et al., 2022) shows several dimensions of sustainability such as the social dimension which includes different indicators such as employment opportunities (employment), equality, poverty and human quality of life, average travel time, political stability, health and well-being (health-adjusted life expectancy), legal aspects, and social capital. Thus, (Habidin et al., 2015) identified measurement factors related to social sustainable performance as increased responsibility for human rights and safety and employees’ personal desire to do what is right. (Chiou et al., 2011) point out that organizations tend to adopt environmentally friendly practices (e.g., consuming fewer natural resources, disposing of less waste) in their decision-making and day-to-day operations due to changes in environmental policies, legal regulations, and pressure from employees, customers, competitors, and other stakeholders to minimize the negative impact of operations on the environment. (Habidin et al., 2015) elaborated on the details of environmentally sustainable performance such as the reduction of waste, air emissions, solid waste, consumption of toxic materials, and frequency of environmental accidents. (Yavuz et al., 2023; Karmaker et al., 2022) . (Contini et al., 2023) report that the integration of sustainability and digitalization is highlighted as a crucial aspect to achieve sustainable production and development. Several researchers like (Ghobakhloo et al., 2021) suggest that Industry 5.0, the newest industrial paradigm, has the potential to transcend the profit-driven productivity of Industry 4.0 and promote the Sustainable Development Goals, including the human-centered approach, socio-environmental sustainability, and resilience. Thus, the concept of sustainability is increasingly associated with the industrial sector (Demir & Cicibas, 2017; Ghobakhloo et al., 2022; Porter & Kramer, 2019) also point out that many companies focus exclusively on creating value and optimizing short-term financial performance, ignoring the most critical customer needs and the broader determinants of long-term success. Porter’s key idea is that investing in sustainable planning (environmental, social, and economic) in businesses can generate a short-term economic return. Its main objectives are to enable companies to create a competitive advantage and play a leading role in bringing business and society closer together. This is because, according to strategy theory, for a company to be successful, it must create a unique value proposition that meets the requirements of a specific group of customers (Contini et al., 2023) . In addition, the organization gains a competitive advantage by configuring its value chain, which encompasses all the activities involved in the generation, production, distribution, sale and support of its goods or services. This value chain configuration allows the company to differentiate itself from its competitors and create value for its customers, thereby increasing its chances of success in the market (Porter & Kramer, 2019) . Porter’s “shared value principle” suggests that firms should link business success to social progress by creating economic value for society (Porter & Kramer, 2019, Contini et al., 2023) . By implementing this concept, companies can recognise social damages or weaknesses (pollution, unsafe working environment, waste of resources, workplace accidents, etc.), which can often create internal costs such as wasted energy or raw materials, costly accidents, and the need for remedial training to compensate for teaching shortcomings. Porter argues that a company’s success and performance depend on three tools that companies must integrate into their strategic plan: digitalization, sustainability, and the circular economy, which are defined as the levers of competitive advantage and value creation (Porter & Kramer, 2019; Contini et al., 2023) . However, with these factors and the spread of COVID-19, investments in digitalization and sustainability have recently increased. The COVID-19 pandemic has highlighted the need to invest sustainably in companies, as investors increasingly recognize the impact of environmental, social, and governance (ESG) factors on corporate performance and long-term value creation (Contini et al., 2023) . Thus, for example, (Contini et al., 2023) show that the COVID-19 pandemic had a considerable impact on ceramics companies in 2020, resulting in an estimated loss of revenue of around ?50 million. The health crisis has significantly affected the sector, leading to a substantial drop in sales of around −20%. However, in 2021, the industry saw a strong increase in turnover, from ?.6 million to around ?.5 million, an increase of +35.97%. This growth has helped to recover from the decline caused by the pandemic and has contributed significantly to growth. Sustainable investments have played a crucial role in overcoming the crisis, as companies have understood that technological innovation, product evolution and environmentally sustainable practices, with pollution levels below legal limits, can be combined to succeed (Contini et al., 2023) . As a result, there has been a significant shift towards sustainable investing, with funds outperforming traditional funds in many cases. In Europe, the Green Deal Investment Plan finances public and private investments to support the transition to a climate-neutral, sustainable and circular economy (Contini et al., 2023) . In particular, the European Green Deal is a set of strategic initiatives that aim to set the EU on the path to a green transition, with the ultimate goal of achieving climate neutrality by 2050. In Italy, the PNRR (Piano Nazionale di Ripresa e Resilienza) aims to promote economic recovery and resilience after the pandemic. The plan includes various investments to implement digital innovation and sustainability tools, such as energy efficiency, renewable energy, circular economy, sustainable mobility and nature-based solutions (Contini et al., 2023) . Therefore, the NRRP can be considered as part of the investments in industrial sustainability, as it includes various measures to promote sustainable development and reduce environmental and social risks. With this type of financing, it is possible to incentivize and implement sustainable operations to create shared value and good performance (Contini et al., 2023) . Whereas, to start the discussion on the opportunities, challenges and benefits of Industry 4.0’s impact on sustainability and performance requires a holistic understanding of this industrial revolution. Between the promises of increased efficiency, enhanced sustainability, and the complex challenges related to investments and data security, a complex web of opportunities and frontiers is emerging to be pushed back. Indeed, at the heart of the benefits offered by Industry 4.0 is an unprecedented optimization of resources. Advanced automation, coupled with real-time data analytics, promises to eliminate inefficiencies, reduce wasted resources and increase productivity. Similarly, environmental sustainability finds a new ally in predictive maintenance and logistics optimization, working to reduce the ecological footprint of manufacturing operations. Mass customization, made possible by increased flexibility, not only offers products that are more tailored to consumer needs but also an agile response to market fluctuations (Porter & Kramer, 2019; Contini et al., 2023) . However, in this revolution, the opportunities extend beyond operational gains. The adoption of Industry 4.0 offers companies a path to increased competitiveness, rooted in technological innovation and the ability to respond quickly to market demands. Economic growth is taking shape in the wake of this transformation, with the creation of jobs in areas such as data management, advanced engineering and specialized maintenance. On the social level, this transition also represents an opportunity to strengthen the environmental responsibility of companies, placing sustainability at the heart of their concerns. However, during these promising opportunities, challenges emerge with force. The significant upfront investments required to integrate these technologies can be a major hurdle, especially for small and medium-sized enterprises. Data security is becoming a critical concern in an interconnected world, requiring robust measures to protect sensitive information. The cultural and organizational changes required for the adoption of these technologies may be met with internal resistance, highlighting the need for skillful human capital management. In summary, Industry 4.0 offers benefits that go beyond operational efficiency, shaping a sustainable, agile and competitive manufacturing landscape. However, to fully realize these benefits, companies must address significant challenges, which require thoughtful strategy, wise investments, and agile change management. The industrial future belongs to those who can successfully navigate through this era of transformation, turning challenges into opportunities and elevating their operations to new heights of sustainability and performance (Porter & Kramer, 2019; Contini et al., 2023) . Within this industrial revolution, limits are emerging, imposing contours on this optimistic vision. The complexity of systems associated with the integration of advanced technologies can lead to operational challenges, especially for small businesses. The large investments required for the transition to Industry 4.0 can be a hindrance, creating a disparity between large and small companies. In addition, data security is becoming a double-edged sword, as increased connectivity exposes businesses to cyber risks that require sophisticated protection strategies. The potential impact on employment represents another limitation, as advanced automation could lead to the substitution of some human tasks, raising questions about the changing workforce and the need for reskilling schemes. Cultural and organizational challenges related to resistance to change can hinder the adoption of Industry 4.0, requiring skillful management to ease the transition. Finally, the incompatibility of legacy systems can be a barrier, especially for companies with older infrastructures, requiring additional investment for successful integration. So, while Industry 4.0 offers considerable potential, it is essential to recognize and overcome these limitations to fully realize the promised benefits, ensuring a balanced and sustainable transition to this new manufacturing era.
3. Conclusions
In conclusion, the study of the impact of Industry 4.0 on the sustainability and performance of companies reveals significant changes in the industrial landscape. The potential benefits, such as resource optimization, enhanced environmental sustainability, increased productivity and deployed flexibility, promise a more efficient and competitive significant industrial evolution.
However, the integration of Industry 4.0 concept offers opportunities to disseminate knowledge, and it allows companies to be more connected with customers and ensure the sustainability of production and good performance, In addition, digital solutions enable circular business models through automated monitoring, control and optimizations of resources and material flows (Benkarouba & Benbouzian, 2022) . Several studies show that digital technologies, especially those related to the concept of Industry 4.0, have been identified as important enablers of circular economy business models as they allow companies to share data within their supply chains and identify and track products and materials, improving their ability to retain value (Benkarouba & Benbouzian, 2022) . Nevertheless, this transition is not without its challenges. Substantial investments required, data security concerns, cultural shifts, and human resource management challenges are the hurdles that businesses must overcome.
Despite these obstacles, the opportunities associated with this industry revolution cannot be ignored. Companies that are beginning to overcome these hurdles are better positioned to grow in an ever-changing economic environment. By embracing the principles of sustainability, operational efficiency and innovation, Industry 4.0 promises a more resilient and competitive industrial sector in line with the sustainability needs of the 21st century. The success of this transition will depend on companies’ ability to meaningfully integrate these technologies, invest in employee training, and implement adaptive strategies to reveal and overcome future challenges. Finally, Industry 4.0 is much more than just a technological development; it’s an opportunity to redefine the way we design, produce and imagine the future of manufacturing (Demir & Cicibas, 2017; Ghobakhloo et al., 2022; Porter & Kramer, 2019; Contini et al., 2023) .
Finally, this study is of crucial importance in the current context of the Fourth Industrial Revolution, offering a holistic perspective on the impact of this transformation on business performance and sustainability. Understanding the implications of these technological changes is essential for policymakers, researchers, and practitioners, as it helps guide business strategies, maximize the benefits offered by new technologies, and address the challenges inherent in this period of transition. Indeed, the main contributions of this article lie in its in-depth analysis of aspects related to operational performance, economic and environmental sustainability, as well as the management of the strategic and ethical challenges associated with the fourth industrial revolution. By synthesizing existing knowledge, this research aims to provide practical guidance for companies looking to navigate this complex environment. However, it is important to note that this literature review has some limitations, including the dependence on available sources and the speed at which the technology is evolving. As a result, the research may not cover the entirety of recent developments, highlighting the need for a constant update of the understanding of this dynamic field. Despite these limitations, this study provides a solid basis for further reflection and future research on the impacts of the Fourth Industrial Revolution on businesses and their sustainability.
At the end of this study and as a recommendation for companies to optimize their performance while integrating sustainable practices in the era of the Fourth Industrial Revolution, companies can adopt crucial strategic courses of action. In the first place, a holistic integration of technologies, carefully assessing specific needs and gradually implementing relevant solutions, allows for a more efficient transformation. At the same time, investing in training and skills development ensures a workforce that is adaptable to technological change. Integrating sustainability strategies, such as the adoption of renewable energy sources and the promotion of an ethical supply chain, is a priority to strengthen the brand image and meet the growing expectations of stakeholders. Proactive risk management, including cybersecurity and ethical concerns, is also essential to ensure business continuity. Finally, collaboration and strategic partnerships with others in the sector foster continuous innovation. However, shortcomings persist, including the lack of universal standards, limited understanding of ethical implications, and difficulty in measuring accurate environmental impact. Perspectives for this topic include ongoing research on socio-economic impacts, the development of appropriate regulations, the promotion of inclusive innovation, and the exploration of new sustainable business opportunities. In short, companies are called upon to take a proactive strategic approach and help shape a future where performance and sustainability align in the dynamic context of the Fourth Industrial Revolution.