Intelligent transformation of the manufacturing industry for Industry 4.0: Seizing financial benefits from supply chain relationship capital through enterprise green management

Prior research and practices of Industry 4.0 mostly centered on the intelligent transformation of the manufacturing industry from a technical perspective. However, it remains unclear how social and environmental factors can improve companies' performance in their digital transformation under Industry 4.0. Our research addresses this gap by exploring how companies undergoing digital transformation can leverage their relationship capital and green management initiatives to improve their financial performance, benefiting the entire supply chain. Specifically, we developed a conceptual model that captures the relationship between supply chain relationship capital, enterprise green management, and financial performance and used structural equation modeling and SPSS PROCESS to empirically test the hypotheses with data collected from 308 Chinese manufacturing companies. The findings indicate that for companies in the digital transformation of Industry 4.0, supply chain relationship capital positively affects enterprise green management, which subsequently enhances financial performance. Meanwhile, supply chain relationship capital also indirectly improves companies’ financial performance by leveraging their green management initiatives. Our findings contribute to the literature by enriching the implications of relational capital in supply chains and strengthening the viability of green management. We also provide practical guidance for companies to effectively implement green management programs and exploit their relationship capital.