The Effects of Smart Factory Critical Success Factors on Sustainability: The Mediating Role of Information Management, Operating Agility

Abstract

This study examined how smart factory critical success factors affected sustainability and investigated the mediating role of absorptive capacity in this relationship. Based on the resource-based view and dynamic capability perspective, this study developed a structural model in which technical factors and innovation capability influenced sustainability through information management and operating agility. Data were collected from employees and managers of manufacturing firms that had introduced or were operating smart factory systems. The collected data were analyzed using structural equation modeling, and the mediating effects were verified through bootstrapping with 5,000 resamples and 95% confidence intervals. The findings revealed that technical factors had a significant positive effect on sustainability, whereas innovation capability did not have a significant direct effect on sustainability. However, both technical factors and innovation capability significantly affected information management and operating agility, and these two dimensions of absorptive capacity positively influenced sustainability. In particular, innovation capability showed a stronger indirect effect through absorptive capacity than a direct effect on sustainability. This study extended the smart factory literature by integrating critical success factors, absorptive capacity, and sustainability into a single analytical framework. The results suggested that firms should not only invest in digital technologies and innovation resources but also strengthen internal information management and operational responsiveness to convert smart factory capabilities into sustainable outcomes. The findings had practical implications for manufacturing firms and policymakers seeking effective strategies for implementing smart factories.