Impact of Industry 4.0 Capabilities on Supply Chain Performance in Developing Economies: Evidence from Sri Lanka’s Apparel Industry

The apparel industry in developing economies faces significant challenges in digital transformation due to infrastructural limitations, skill gaps, and regulatory constraints. These barriers have hindered the full realization of the benefits offered by Industry 4.0 technologies. Drawing on capability-based theory, this study investigates how three key Industry 4.0 technological capabilities—Internet of Things (IoT), Big Data Analytics (BDA), and Cloud Computing (CC)—influence supply chain performance (SCP). Cross-sectional data from 57 apparel manufacturers in Sri Lanka were analysed using multiple regression analysis. The findings reveal that IoT and CC significantly enhance SCP, while BDA demonstrates a positive but statistically insignificant effect. This study contributes to the literature by providing sector-specific empirical evidence on the impact of Industry 4.0 capabilities in developing economies and extends capability-based theory within contexts characterized by structural and institutional challenges. Managerially, the study offers insights into how firms can leverage I4.0 technologies to strengthen SCP, even in resource-constrained settings. Limitations include the focus on a single industry and reliance on fundamental statistical techniques.