Abstract
Despite the importance of corporate transformation toward Industry 4.0 (CTTI4.0), almost no research exists on how companies communicate CTTI4.0 information in their annual reports and how this affects financial performance. To fill this gap, this paper uses computer-aided textual analysis to explore the current practices of CTTI4.0 in the UK context. It also uses quantitative analysis to examine the impact of CTTI4.0 information on financial performance. The analysis shows that strategic investment decision-making (SIDM) practices for CTTI4.0 have accelerated over the period, and these practices vary in industry sectors. Furthermore, it finds that CTTI4.0 disclosure has a positive impact on financial performance. In addition, it finds that environmental, social, and governance (ESG) practices moderate the relationship between CTTI4.0 disclosure and financial performance. This indicates that firms with better ESG performance tend to be more engaged in CTTI4.0 disclosure and better financial performance simultaneously. Our findings offer insights to decision-makers and regulatory bodies regarding the current practices of CTTI4.0 and its potential economic impact.
| Original language | English |
|---|---|
| Article number | 121423 |
| Number of pages | 13 |
| Journal | Technological Forecasting and Social Change |
| Volume | 175 |
| Early online date | 7 Dec 2021 |
| DOIs | |
| Publication status | Published - 1 Feb 2022 |
Keywords
- business model
- transformation
- Industry 4.0
- financial performance
- ESG
- strategic investment
- decision-making
- circular economy
- UK
- companies
Access to Document
- Corporate transformation AAM
The embargo end date of 2050 is a temporary measure until we know the publication date. Once we know the publication date the full text of this article will be able to view shortly afterwards.