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Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG)

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Standard Standard

Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG). / Alkaraan, Fadi ; Albitar, Khaldoon; Hussainey, Khaled et al.
In: Technological Forecasting and Social Change, Vol. 175, 121423, 01.02.2022.

Research output: Contribution to journal › Article › peer-review

HarvardHarvard

Alkaraan, F, Albitar, K, Hussainey, K & Venkatesh , VG 2022, 'Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG)', Technological Forecasting and Social Change, vol. 175, 121423. https://doi.org/10.1016/j.techfore.2021.121423

APA

Alkaraan, F., Albitar, K., Hussainey, K., & Venkatesh , V. G. (2022). Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG). Technological Forecasting and Social Change, 175, Article 121423. https://doi.org/10.1016/j.techfore.2021.121423

CBE

Alkaraan F, Albitar K, Hussainey K, Venkatesh VG. 2022. Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG). Technological Forecasting and Social Change. 175:Article 121423. https://doi.org/10.1016/j.techfore.2021.121423

MLA

Alkaraan, Fadi et al. "Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG)". Technological Forecasting and Social Change. 2022. 175. https://doi.org/10.1016/j.techfore.2021.121423

VancouverVancouver

Alkaraan F, Albitar K, Hussainey K, Venkatesh VG. Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG). Technological Forecasting and Social Change. 2022 Feb 1;175:121423. Epub 2021 Dec 7. doi: 10.1016/j.techfore.2021.121423

Author

Alkaraan, Fadi ; Albitar, Khaldoon ; Hussainey, Khaled et al. / Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG). In: Technological Forecasting and Social Change. 2022 ; Vol. 175.

RIS

TY - JOUR

T1 - Corporate transformation toward Industry 4.0 and financial performance: The influence of environmental, social, and governance (ESG)

AU - Alkaraan, Fadi

AU - Albitar, Khaldoon

AU - Hussainey, Khaled

AU - Venkatesh , V.G.

PY - 2022/2/1

Y1 - 2022/2/1

N2 - 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.

AB - 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.

U2 - 10.1016/j.techfore.2021.121423

DO - 10.1016/j.techfore.2021.121423

M3 - Article

VL - 175

JO - Technological Forecasting and Social Change

JF - Technological Forecasting and Social Change

SN - 0040-1625

M1 - 121423

ER -