THE RELATIONSHIP BETWEEN STRATEGIC FLEXIBILITY, THE FOURTH INDUSTRIAL REVOLUTION AND CORPORATE SUSTAINABLE PERFORMANCE

Abstract

Enjoying the benefits of industry 4.0 which includes technologies like the internet of things, artificial

intelligence, and big data is changing the course of business processes and enabling sustainability

in business performance. When included with strategic flexibility– the capability to expedite

changes in the business environment – industrial revolution 4.0 helps companies improve economic,

environmental, and social aspects. The present paper reviews the current body of knowledge about

the role of Industry 4.0 in shaping corporate sustainability strategies, placing great emphasis on

strategic flexibility. They explain, through case studies of such companies as Siemens, how the

application of the above technologies and strategies enhances the effective use of resources, cuts

operational expenses and lessens harm to the environment. Yet, such awe-inspiring advantages are

still restrained due to the exorbitant expenses associated with implementation, lack of necessary

resources and skills, and organizational inertia. The article emphasizes that in developing a deep

integration between 4th industrial revolution and strategic flexibility, the organizations will be able

to attain the desired competitive advantage and sustainability over time, if some barriers will be

removed.