The findings show that sustainable human resource management promotes Industry 4.0-enabled dynamic marketing capabilities (IDMC); IDMC and SHRM both support implementation of circular product design strategies.
Kirti Nayal, Operations and Supply Chain Management, Indian Institute of Management (IIM), Mumbai Vihar Lake, Powai, Mumbai, Maharashtra 400087, India.
Rakesh D. Raut, Operations and Supply Chain Management, Indian Institute of Management (IIM), Mumbai Vihar Lake, Powai, Mumbai, Maharashtra 400087, India.
Sachin Kumar Mangla, Full Professor and Director, Research Center for Digital Circular Economy for Sustainable Development Goals (DCE-SDG), Jindal Global Business School, O.P. Jindal Global University, Haryana, India; Plymouth Business School, University of Plymouth, UK.
Mukesh Kumar, Department of Mechanical Engineering, National Institute of Technology Patna, India 800005.
David Tuček, Faculty of Management and Economics, Tomas Bata University in Zlín, Mostní 5139, 760 00 Zlín, Czech Republic.
Beata Gavurova, Center for Applied Economic Research, Faculty of Management and Economics, Tomas Bata University in Zlin, Mostni 5139, 760 01 Zlin, Czech Republic.
Business-to-business (B2B) firms are striving to sustain market growth and share in dynamic marketing environment with an increasing need to protect natural resources in era of sustainability and industry 4.0. Although many firms have adapted industry 4.0 technologies, circular economy and sustainability practices in their business activities, but to sustain market growth is still a challenge.
They need dynamic capabilities to face the current dynamic market instead of just resources and their capabilities. This study empirically examines whether Industry 4.0-enabled dynamic marketing capabilities and sustainable human resource management (SHRM) can enable firms to implement circular product design strategies and further improve market performance.
The proposed framework is based on a dynamic capability view (DCV) and tested by structural equation modeling using survey data from 424 Indian B2B manufacturing firms. The findings show that SHRM promotes Industry 4.0-enabled dynamic marketing capabilities (IDMC); IDMC and SHRM both support implementation of circular product design strategies. Circular product design is supposed to facilitate IDMC to expand market performance. But, IDMC alone is also enough to significantly enhance market performance, despite the combined positive effect of circular product design and SHRM on market performance.
These findings contribute to better understanding on what type of dynamic capabilities of organizational resources should be developed and utilized to improve market performance. The study helps firms to develop dynamic marketing capabilities such as circular product design strategies, SHRM and IDMC for helping them in improving market performance while also growing sustainably.
Published in: Industrial Marketing Management
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