Industry 4.0-Driven Green Supply Chains: An Economic Analysis for Sustainable Performance in Developing Countries

Abstract

Abstract The rapid integration of Industry 4.0 technologies is profoundly transforming global supply chains, impacting sustainability, economic efficiency, and competitiveness. This study economically analyzes the adoption of Industry 4.0-driven green supply chain management (GSCM) practices specifically within developing economies. Leveraging established economic theories, including transaction cost economics, resource-based view, and institutional theory, alongside empirical data and case studies, the authors assess how digital transformation enhances supply chain sustainability and economic performance. The authors employ a panel data regression model to examine the relationship between Industry 4.0 technologies (Internet of Things, blockchain, artificial intelligence, and additive manufacturing) and key sustainability metrics, including carbon footprint reduction, cost efficiency, and resilience. By leveraging case studies from developing nations, the authors highlight how digital adoption influences supply chain productivity and long-term economic gains while aligning with the United Nations Sustainable Development Goals (UNSDGs) 2030. The authors’ findings provide policy recommendations for governments and firms to optimize digital infrastructure investments, mitigate adoption barriers, and enhance regulatory frameworks for sustainable economic growth. This chapter contributes to the literature by bridging economic analysis with the practical application of Industry 4.0 technologies for supply chain sustainability in developing economies. It offers novel insights into how these nations can achieve economic and environmental resilience amid evolving global trade dynamics, particularly in the post-COVID-19 era.