Digital technology adoption, firm and sustainable performances in Mexican automotive and aerospace SMEs: myth or reality?

Purpose Digital technologies of Industry 4.0 (I4.0) have not only revolutionized traditional industrial activities but have also demonstrated their potential to improve firm performance and sustainable performance, particularly in small- and medium-sized enterprises in developing countries. However, the technological progress of I4.0 in the past two decades has not been the same in small- and medium-sized manufacturing companies, and although the benefits that this brings have been demonstrated in the literature, the results so far are insufficient and not very clear. Therefore, this study aims to fill this gap by exploring the importance of the relationship between the digital technologies of I4.0, firm and sustainable performances. Design/methodology/approach The research is conducted through an extensive literature review where a research model consisting of 3 measurement scales, 15 items and 2 hypotheses. A self-administered questionnaire was distributed to a sample of 307 small- and medium-sized manufacturing firms in Mexico, analyzing and validating the data set through the Partial Least Squares Structural Equation Modeling statistical technique, using the SmartPLS 4.0 software. Findings The results obtained suggest that the adoption of digital technologies of I4.0 has significant positive effects, both at the level of a firm’s performance and at the level of sustainable performance of small- and medium-sized manufacturing firms in the automotive and aerospace industries. Practical implications The findings of this study have important implications for executives, policymakers, business practitioners and public administration, because it contributes to the development of sustainable and environmental activities of other companies, including small- and medium-sized manufacturing firms that make up the supply chain suppliers, which are the ones that generate a higher level of pollution from the automotive and aerospace industry, particularly in emerging economies. Originality/value This paper fills a research gap by expanding the limited body of knowledge that relates digital technologies of I4.0, firm performance and sustainable performance, which is why this research aims to achieve its main objective to fill this existing gap in the literature and explore the relationship between I4.0, firm performance and sustainable performance.