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Boosting environmental management: The mediating role of Industry 4.0 between environmental assets and economic and social firm performance

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  • Joan Torrent‐Sellens
  • Pilar Ficapal‐Cusí
  • Mihaela Enache‐Zegheru
Abstract
The adoption of new innovative ecosystems linked to Industry 4.0 (I4.0) in industrial firms has created new opportunities for performance. In this study, we investigate whether I4.0 can reinforce environmental asset management in achieving firm economic and social performance. We intend to contrast the existence of I4.0‐based reward mechanisms for being green. Using a panel of 1028 Spanish industrial firms in 2009–2016 period and a partial least squares structural equation modelling econometric methodology, the research has obtained two main results. First, the management of environmental assets generates positive effects on the economic and social performance of the industrial firm. Second, research findings confirm the mediating role of I4.0, which ends up reinforcing the relationship between environmental assets and the economic and social firm performance. The results obtained highlight the importance of complementary relationships between digital and environmental transformation to promote firm performance. Implications for firm strategy and business models are also discussed.

Suggested Citation

  • Joan Torrent‐Sellens & Pilar Ficapal‐Cusí & Mihaela Enache‐Zegheru, 2023. "Boosting environmental management: The mediating role of Industry 4.0 between environmental assets and economic and social firm performance," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 753-768, January.
    • Handle: RePEc:bla:bstrat:v:32:y:2023:i:1:p:753-768
    DOI: 10.1002/bse.3173
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