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Purpose

During the era of Industry 4.0, organizations must increasingly rely on their ability to transform data and information into actionable knowledge. Grounded in the knowledge-based view and absorptive capacity theory, this study aims to examine how realized absorptive capacity – specifically, the transformation and exploitation dimensions – affects the development of technical knowledge and business/marketing knowledge required for the adoption of Industry 4.0 technologies in sustainable global distribution contexts.

Design/methodology/approach

Survey data were collected in 2024 from marketing, operations and business development professionals in firms operating in global markets in Canada and the USA. After applying the qualification criteria, the final sample consisted of 131 respondents. Measurement items were adapted from established scales in previous research. The proposed model was tested using partial least squares structural equation modeling with SmartPLS.

Findings

The results indicate that both dimensions of realized absorptive capacity significantly influence the development of organizational knowledge capabilities. Transformation strongly drives exploitation, and both constructs positively affect technical knowledge and business/marketing knowledge. The effect sizes are medium to large, suggesting that realized absorptive capacity plays a substantial role in developing the knowledge required to implement Industry 4.0 technologies.

Research limitations/implications

The study is based on cross-sectional survey data and self-reported responses from a single informant per firm, which may limit causal interpretation and introduce potential bias. In addition, the sample size and industry composition may constrain generalizability. Future research could use longitudinal designs, multi-informant data and broader industry samples to examine how absorptive capacity evolves over time and influences organizational performance and sustainability outcomes.

Practical implications

The findings suggest that Industry 4.0 adoption should be viewed as a knowledge-driven transformation rather than purely a technological investment. Managers should, therefore, invest in employee expertise, cross-functional collaboration and knowledge-sharing systems that enable organizations to transform and exploit technological insights. Strengthening realized absorptive capacity can help firms convert digital information into capabilities that support innovation and operational efficiency in global distribution systems.

Social implications

By enabling firms to integrate and apply digital knowledge effectively, realized absorptive capacity can support more efficient and sustainable global distribution systems. Improved use of Industry 4.0 technologies may enhance demand forecasting, logistics optimization and resource utilization, thereby reducing waste and supporting environmentally responsible supply-chain practices.

Originality/value

This study contributes to Industry 4.0 research by linking realized absorptive capacity to two critical knowledge domains – technical knowledge and business/marketing knowledge. The proposed model provides new insights into how firms convert knowledge processes into capabilities that support digital transformation in global distribution contexts.

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