The interplay among paradoxical leadership, industry 4.0 technologies, organisational ambidexterity, strategic flexibility and corporate sustainable performance in manufacturing SMEs of Malaysia

In: European business review, Band 36, Heft 5, S. 639-669

Abstract

Purpose
Manufacturing firms must embrace smart technologies and develop complex leadership approaches to achieve sustainability. Using the dynamic capability theory, this paper aims to examine the influence of the adoption of industry 4.0 technologies (AT) and paradoxical leadership (PL) on corporate sustainable performance (CSP) of manufacturing small-medium enterprises (SMEs) in Malaysia. Moreover, organisational ambidexterity (OA) is a mediator and strategic flexibility (SF) is a moderator in the study.


Design/methodology/approach
The study is a cross-sectional, quantitative study design that collected 395 usable responses through a simple random sampling technique and a close-ended structured questionnaire. Structural equation modelling (SEM) procedures were followed to analyse the data.


Findings
The statistical outcome implies that the AT significantly influence CSP and OA and mediate with CSP in the presence of OA. Moreover, PL shows a significant impact on OA, is insignificant on CSP and mediates with OA and CSP. The authors found a significant association between OA and CSP; however, SF did not provide evidence of a moderate effect.


Research limitations/implications
The findings of this study clarify the role that organisational capabilities (OA, AT, PL and SF) play in fostering sustainability. The authors suggest incorporating SMEs from different geographies in other sectors by applying diverse methodologies and relevant constructs.


Practical implications
The result injects new perspectives into policy, managerial and individual levels. Installing OA, AT, PL and SF makes SMEs sustainable.


Originality/value
The empirical validation of the influence of OA and AT on CSP and the interaction of PL and SF enriches the organisational and entrepreneurial literature.