Driving Success through Digital Transformation: Influence of Industry 4.0 on Lean, Agile, Resilient, Green Supply Chain Practices in Pharmaceutical Sector of Karachi, Pakistan

Abstract

The present study seeks to examine the impacts of Industry 4.0 (I4.0) tools Blockchain, Internet of Things (IoT), Machine Learning (ML), and Data Analytics (DA) on lean, agile, resilient, and green (LARG) supply chain practices and consequently operational performance measures, which are cost and customer service performance, in the pharmaceutical industry in Karachi, Pakistan. A quantitative study methodology was employed to collect data on 207 valid responses collected under the purposive sampling technique using a structured survey to be administered to senior operational and supply chain employees at leading pharmaceutical firms in Karachi. Both direct and indirect effects were analyzed using PLS-SEM or the partial least squares structural equation modeling. The results imply that the operation of LARG supply chain with the use of I4.0 technologies is significantly enhanced by blockchain and data analytics. LARG methods greatly affect both the cost performance and the customer service performance. The mediation analysis shows that the relationship between I4.0 tools and performance outcome falls under the LARG paradigms partially, which indicates that the performance benefits of digital transformation are achieved through changes in operational processes. These findings go in line with the theoretical assertion that digital change transforms the pharmaceutical supply chains to be competitive, flexible, resilient, and sustainable. The current study provides one of the earliest empirical studies relating I4.0 tools to dual performance results and LARG supply chain practices that are involved in the pharmaceutical industry of Pakistan. It develops theory by integrating the LARG and the digital transformation paradigm into one. It also contributes to practice by giving industry-specific data of an upcoming economy that is regulated and is likely to be disrupted.