THE EFFECT OF INDUSTRY 4.0 ON RAPPROCHMENT OF DYNAMIC CAPABILITIES: A LITERATURE REVIEW

Abstract

: This research paper reviews the available literature about interaction between dynamic capabilities and Industry 4.0. The objective is to to understand how Industry 4.0 technologies, like cyber-physical systems, Internet of Things (IoT), and advanced analytics, are impacting the dynamic capabilities within organizations. This review finds that digitalization enhances agility, innovation, and responsiveness of organizations and, allowing them to keep pace with rapidly changing market dynamics. It also highlights that leadership, organizational culture, and strategic alignment are crucial for fully harnessing these advantages. While most of the studies focus on the manufacturing sector, there is evidence that these findings are also relevant across various industries. There are still gaps in research, particularly in services and agriculture sector. Challenges such as limited resources, the need for organizational change, and technology integration stresses upon the importance of balanced strategies that extend beyond just technical implementation. By bringing together recent studies, this review emphasizes the promise of Industry 4.0 in building resilience and gaining a competitive edge. This review is also pointing out areas for future research, such as sector diversity, cultural shifts, and long-term sustainability.