The emergence of the Fourth Industrial Revolution: Mediating effect of hyper-connectivity on the relationship of digitalization with competitive advantage

• Main Authors: Moraga, Melvin Vitug, Avante, Joshua Miguel R., Ibay, Patricia Marie M, Kung, Joe Eric B., Salud, Paolo Gonzalo T.
• Format: text
• Published: Animo Repository 2022
• Subjects: Industry 4.0; Technological innovations; Business; Technology and Innovation
• Online Access: https://animorepository.dlsu.edu.ph/faculty_research/10934
• Institution: De La Salle University

The offshoot of the fourth industrial revolution which blends the physical, digital, and biological worlds resulted in a paradigm change on industrial organizations inside them as well as on society. With the increasing pressure of global and domestic competition, the use of multiple platforms in interacting with suppliers and serving customers, it is argued that the impact of digitalization and a hyper-connected workplace on the firm’s competitive advantage in the industry would yield positive correlation results. Using a survey of 204 managers and key informant interviews represented by the Filipino-owned firm’s chief executive officer along with a few experts, this paper studies whether hyper-connectivity in the workplace mediates the impact of digitalization on competitive advantage. Mediational analysis by Baron and Kenny’s four-step model was primarily utilized to identify mediational hypothesis. The result confirmed a full mediating effect of hyper-connectivity between the relationship of digitalization and competitive advantage. The paper concludes with the key recommendations including among others maintaining the use of a data base management system in the firm’s daily operations as it facilitates the checking of inventory, sales, feedback and the like; integrate more technology in key processes such as the use of monitoring systems to safeguard food safety and ensure equipment are operating in good working condition.