Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG)

Alkaraan, Fadi, Albitar, Khaldoon, Hussainey, Khaled and Venkatesh, V G (2022) Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG). Technological Forecasting and Social Change, 175 . -.. ISSN 0040-1625

Full content URL: https://doi.org/10.1016/j.techfore.2021.121423

Documents
Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG)
Authors' Accepted Manuscript

Request a copy
[img] PDF
TFSC-Manuscript (Fadi et al, 2022) FV.pdf - Whole Document
Restricted to Repository staff only until 7 June 2023.
Available under License Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International.

613kB
Item Type:Article
Item Status:Live Archive

Abstract

Abstract
Despite the importance of corporate transformation toward Industry 4.0 (CTTI4.0), almost no research exists on how companies communicate CTTI4.0 information in their annual reports and how this affects financial performance. To fill this gap, this paper uses computer-aided textual analysis to explore the current practices of CTTI4.0 in the UK context. It also uses quantitative analysis to examine the impact of CTTI4.0 information on financial performance. The analysis shows that strategic investment decision-making (SIDM) practices for CTTI4.0 have accelerated over the period, and these practices vary in industry sectors. Furthermore, it finds that CTTI4.0 disclosure has a positive impact on financial performance. In addition, it finds that environmental, social, and governance (ESG) practices moderate the relationship between CTTI4.0 disclosure and financial performance. This indicates that firms with better ESG performance tend to be more engaged in CTTI4.0 disclosure and better financial performance simultaneously. Our findings offer insights to decision-makers and regulatory bodies regarding the current practices of CTTI4.0 and its potential economic impact.

Keywords: Business model, transformation, Industry 4.0, financial performance, ESG, strategic investment, decision-making, circular economy, UK, companies

Keywords:Business model, transformation, Industry 4.0, financial performance, ESG, strategic investment, decision-making, circular economy, UK, companies
Subjects:N Business and Administrative studies > N320 Investment and Insurance
N Business and Administrative studies > N400 Accounting
N Business and Administrative studies > N321 Investment
N Business and Administrative studies > N100 Business studies
N Business and Administrative studies > N211 Strategic Management
Divisions:Lincoln International Business School
ID Code:47471
Deposited On:14 Feb 2022 09:54

Repository Staff Only: item control page