The Strategic Role of Energy Efficiency and Industry 4.0 Interventions in Manufacturing

Abstract

Energy efficiency measures and Industry 4.0 investments are prominent drivers of business competitiveness and sustainability, working toward sustainable development goals and decarbonization commitments. We analyzed data from a survey of 239 Italian manufacturing firms conducted in 2021. The survey was designed to identify drivers of energy efficiency measures and Industry 4.0 measures, as well as barriers to their implementation. We also examined interventions on key business variables such as business model sustainability, corporate social responsibility, business economics, public image, reputation, and market positioning. Energy efficiency intervention drivers are correlated with sustainable corporate social responsibility and cost reduction, whereas Industry 4.0 intervention drivers are associated with production optimization variables. Prominent barriers to energy efficiency interventions relate to economic feasibility, regulatory uncertainty, and financial issues. Similarly, key barriers to Industry 4.0 interventions are economic feasibility, enabling infrastructures, and regulatory uncertainty. The implication of energy efficiency measures and Industry 4.0 investments are discussed to pave the way for complementarity, overlap, and contrasting effects of measures. The paper has business implications given that it benefits decision-makers to reduce the risk of strategic drift and increases the probability of meeting sustainable development goals and decarbonization targets of Sustainable Development Goal 11.

Modeling drivers and barriers of climate change mitigation strategies in Indian iron and steel industry: a TISM-based approach

“…, 2020). Other factors like culture, ethics, capacity and complexity in terms of standards of peers, social norms, network dynamics and management paradigms have effect on institutional effectiveness (Beccarello and Di Foggia, 2023). Environmental awareness (D6): Green behavior among managers is significantly influenced, both directly and indirectly by environmental education and awareness.…”

“…Political pressure (B7): Governments should identify the fundamental barriers to technology and find solutions to improve performance. Political and regulatory aspects of fiscal nature act as barriers to industry's energy efficiency (Beccarello and Di Foggia, 2023). Political pressure also governs environmental governance of decarbonization processes (Copley, 2022).…”

“…Institutional effectiveness (D5): Factors like motivation, participation and quality of activities benchmarks institutional effectiveness (Ahmad et al, 2020). Other factors like culture, ethics, capacity and complexity in terms of standards of peers, social norms, network dynamics and management paradigms have effect on institutional effectiveness (Beccarello and Di Foggia, 2023).…”

“…, 2020). Other factors like culture, ethics, capacity and complexity in terms of standards of peers, social norms, network dynamics and management paradigms have effect on institutional effectiveness (Beccarello and Di Foggia, 2023).…”