Unlocking Industry 4.0’s potential in enhancing operational performance of the manufacturing sector with the mediating role of employee training

The application of Industry 4.0 technologies specifically the internet of things (IoT) and big data (BD) have changed the global industrial system. Many emerging economies are increasingly investing in Industry 4.0 technologies but these economies have not achieved the expected benefits due to insufficient digital infrastructure, financial liquidity and manpower inadequacy. This study reveals the impact of BD and IoT on operational performance (OP) in manufacturing context, with the mediating role of employee training (ET). Drawing upon the resource-based view (RBV) theory, the research examines how the strategic incorporation of technological abilities and human capital leads to improve productivity, quality, flexibility, and cost efficiency in manufacturing sector. A quantitative method was used to analyze survey data collected from 320 managers and executives representing manufacturing firms engaged in Industry 4.0 implementation. To analyze the relationship among variables statistical analyses were performed using SPSS 26 and Smart PLS 4. The findings indicate that BD and IoT have a positive and significant impact on OP, while ET further strengthens these effects by establishing the connection between technological aspects and performance outcomes. The results underscore the importance of ongoing employee training and digital innovation endeavors. This study recommends valuable information for practitioners and policymakers to enhance sustainable competitiveness through advanced technology and human resource abilities. Empirically, this research is among the first to study the impact of Industry 4.0 adoption with employee training in developing economies, providing valuable insights for both researchers and practitioners.