Role of Industry 4.0 Tools in Organizational Performance of the IT Sector

Abstract

In the contemporary period, numerous businesses undergo significant adjustments, such as evaluating critical components of their corporate operations and relying on technology to keep operations running while conforming to an ever-changing set of norms and new tactics. The present study aims to explore the relationship between Industry 4.0 (I4.0) tools and their impact on organizational performance, in addition to finding evidence supporting the moderating role of remote working and organizational agility in enhancing organizational performance. The study employed the quantitative research method and 377 questionnaires related to the I4.0 tools (Internet of Things (IoT), Big Data (B.D), Cloud Computing (CC) and Artificial Intelligence (AI)), remote work, organizational performance, and organizational agility, distributed online to the senior or executive-level individuals in IT firms. After data screening, the correlation, linear, and multiple regression analyses were carried out on 310 responses, and the results showed that I4.0 tools, remote work and organizational agility are positively impacted the organizational performance. These results supported the moderating role of organizational agility and remote working for increasing organizational performance through I4.0 tools. Moreover, the results indicated that the Internet of Things and Big Data significantly improve organizational performance. However, in presence of remote work and organizational agility as moderators, AI and Cloud Computing may significantly improve the performance of IT firms. The study also concluded that I4.0 tools are “better practices” for boosting organizational performance; hence, the findings benefit the firms working in the IT sector. This work contributes to existing literature knowledge, particularly in terms of maintaining the current condition and avoiding future work disturbance. This study is innovative as it investigates the relationship between Industry 4.0 tools and organizational performance in Pakistan's IT sector, with a focus on remote work and organizational agility, providing insights for IT organizations.