Abstract
The textile industry is one of the fastest growing industries which expressively contributes to the economic growth of Malaysia. However, in recent years, the situation has changed and demonstrates a downward trend. The imports are growing faster compared to the exports, consequently resulting in a low contribution to the gross domestic product (GDP). To address the issue, this study aims to investigate the role of Industry 4.0 on the performance of firms engaged in the production and services of the Malaysian textile industry. To achieve the objective, this study adopted a cross-sectional research design. A survey was carried out to collect data from employees of textile firms. Results of the study found that Industry 4.0 positively contributed to the effectiveness of the production and services of the textile industry. Production and services have a positive role in the performance of textile firms. The current study provides an interesting insight into the future direction of research for studies on organisational performance, which can be extended to different manufacturing-based industries. In addition, it provides the rationale for the adoption and implementation of smart technologies in these industries. It has been found that cyber-physical systems (CPS), interoperability, a smart city and a smart product have a positive effect on production and services. Additionally, it is not possible without the effective implementation of technology. Thus, the current study provides valuable insights into the improvement of the textile industry’s performance.