A study of sustainability risks from industry 4.0 perspective: taxonomy and future research avenues

Abstract

Purpose A large number of organisations are moving towards adopting Industry 4.0 (I4.0), and simultaneously, the emphasis on attaining sustainability development goals is also increasing. Hence, it is imperative to understand the interplay between I4.0 and sustainability. However, the literature addressing the same is still in infancy. Accordingly, the purpose of this study is to fill this gap in the literature by exploring the potential sustainability impacts of I4.0 on the organisations and society in terms of sustainability risks. Design/methodology/approach To gain an understanding of sustainability aspects in the I4.0 context, relevant literature is gathered using Scopus and Web-of-Science database. An in-depth review of 51 research papers is performed to determine the sustainability risks associated with I4.0. Findings From the study, a total of 16 sustainability risks are identified, and I4.0 sustainability risk taxonomy is developed. The proposed taxonomy extends the sustainability implications of I4.0 beyond the triple bottom line umbrella and includes the organisational perspective as well. Furthermore, the study provides future research avenues to scholars by positing five potential research questions under different risk management stages. Research limitations/implications The study provides an understanding of sustainability risks associated with the adoption of I4.0. The findings will help practitioners streamline their production and operation processes by finding out possible solution to the sustainability risks of their smart factories in advance. The present research will act as a stepping stone towards I4.0 sustainability. The proposed research questions will assist the future researchers in extending the field of I4.0. Originality/value To the best of the authors’ knowledge, this is one of the first studies to address the topic of sustainability risks in the context of I4.0.

The sustainability onion: a panoramic view of a parent concept, its paths, and progeny

“…145 Consequently, the sixth (core most) layer was also named sustainability risks. Sustainability risk 146,147 can be explained as an unforeseen environmental or social event or condition that, if it happens, can negatively affect the rm's nancial position. 145 This assertion is in line with the theory of risks and return.…”