Examining the Impact of Dynamic Capabilities and Industry4.0 Technologies in Pharmaceutical Manufacturing Firms: A Sustainable Supply Chain Performance Framework

ABSTRACT The contemporary challenges and risks including the climate change, social inequalities, trade tariffs and war situations have posed disruptive impacts on the global supply chain operations, thus reshaping the way modern firms survive, operate and compete at a global business landscape. Hence, integrating sustainable and robust supply chain models has become a strategic organizational necessity and basis for long‐term survival and growth. This study empirically examines the role of dynamic capabilities and Industry4.0 technologies in boosting supply chain resilience and driving sustainable economic, environmental and social performance. Drawing upon the dynamic capability theory (DCT) and organizational information processing theory (OIPT) and by examining the interplay between Industry4.0 technologies, Resilience and Sustainable Performance, this study suggests an empirically‐validated “sustainable supply chain performance framework” for the pharmaceutical manufacturing firms of Pakistan. In this regard, a quantitative survey‐based approach was employed to collect data from 485 managers working in the pharmaceutical manufacturing firms of Pakistan. The data analysis was conducted using the Smart‐PLS based SEM technique. Theoretically speaking, the results highlight that Industry4.0 technologies act as catalyst for achieving sustainable supply chain performance (SSCP) under the mediating effect of supply chain resilience (SCR) and moderating effect of supply chain dynamic capabilities (SCDC). From the practical perspective, the results highlight that leveraging digital innovation capabilities enhances the adaptability, operational agility and long‐term sustainability of the pharmaceutical firms. The results also imply that Industry4.0, when effectively integrated with resilience and firm dynamic capabilities, can drive smart, competitive and future‐ready supply chains. From the viewpoint of its contribution to UN SDGs, this study significantly contributes to the SDGs related to technological innovation, industrial growth and resilient infrastructure. Overall, by offering a “SSCP Framework”, this study bridges the gap between technological progress and environmental responsibility, providing valuable insights for the supply chain leaders, practitioners and policymakers in the pharmaceutical firms striving to build more resilient, inclusive and sustainable supply chains.