Integrating I4.0 and Sustainability in the Supply Chains of MSMEs: A Practical Guide based on a Multiple Case Study

Abstract

Purpose – This study develops empirically grounded guidance to support the integration of Industry 4.0 and sustainability (S-I4.0) within the supply chains of micro, small, and medium-sized enterprises (MSMEs), an often-overlooked segment in digital transformation literature. Design/methodology/approach – This study employs a multiple-case approach to conduct empirical research with six enterprises, three micro/small and three medium-sized, using the analytical lenses of Practice-Based View (PBV) and Dynamic Capabilities Theory (DCT). Findings – The study presents a ten-step, PDCA-based guide for MSMEs to implement S-I4.0, integrating PBV and DCT theories to enhance firms’ ability to sense and respond to external changes, enabling sustainable digital transformation across different enterprise sizes. Research limitations/implications – While offering valuable insights, this research relies on a narrow indicator set and a limited case scope, which may limit generalizability and highlight the value of broader, mixed-method approaches for future studies on MSMEs. Practical implications – The framework equips MSME practitioners with a structured and actionable roadmap for implementing S-I4.0, aligning technological innovation with sustainability goals. By addressing the specific challenges faced by MSMEs, it provides context-sensitive, evidence-based guidance to support their transition toward more sustainable and digitally integrated supply chains. Social implications – The study equips policymakers and stakeholders to support MSMEs, vital to national economies, by addressing structural challenges and enabling inclusive, sustainable digital transformation, especially in emerging economies where resource constraints and institutional gaps persist. Originality/value – This study presents an original, empirically validated framework tailored to the distinct characteristics of micro and small enterprises and medium enterprises, addressing a critical gap in theory-driven, practical guidance for MSMEs integrating S-I4.0 into their supply chains.