Table 7 Structural model (direct...

Table 7

Structural model (direct effects) and hypotheses testing

Research question	Hypothesis	Hypothesis code	Direct effects	Regression coefficient	Mean	Standard deviation	T Statistics	p Value	Supported (Y); rejected (N)
RQ1: How are the layers of production capabilities interlinked?	H1: Production dynamic capabilities directly and positively influence production ordinary capabilities	H1	Production dynamic capabilities → Production ordinary capabilities	0.666	0.666	0.073	9.085	0.000***	Y	Supported
	H2: The level of deployment of lean methods influences the level of deployment of Industry 4.0	H2	Lean → Industry 4.0	0.312	0.316	0.113	2.759	0.006***	Y	Supported
	H3: Production capabilities positively influence shop floor production routines	H3a	Production dynamic capabilities → lean	−0.018	−0.021	0.147	0.122	0.903	N	Partially supported
		H3b	Production dynamic capabilities → Industry 4.0	0.317	0.328	0.110	2.883	0.004***	Y
		H3c	Production ordinary capabilities → lean	0.578	0.577	0.125	4.611	0.000***	Y
		H3d	Production ordinary capabilities → Industry 4.0	−0.003	−0.010	0.167	0.016	0.987	N
RQ2: How do they contribute to different dimensions of firm performance?	H4: Operational performance improvement contributes to better business performance	H4	Cost → business performance	0.226	0.232	0.119	1.907	0.057*	Y	Partially supported
			Differentiation → business performance	0.130	0.138	0.128	1.017	0.309	N
			Differentiation → cost	0.310	0.316	0.149	2.080	0.038**	Y
	H5: Operational performance improvement is influenced by each layer of capabilities	H5a	Production dynamic capabilities → cost	−0.173	−0.169	0.138	1.260	0.208	N	Not supported
		H5a	Production dynamic capabilities → differentiation	0.093	0.093	0.205	0.455	0.649	N
		H5b	Production ordinary capabilities → cost	0.249	0.244	0.178	1.399	0.162	N
		H5b	Production ordinary capabilities → differentiation	0.335	0.324	0.201	1.669	0.095*	Y
		H5c	Lean → cost	0.070	0.071	0.156	0.451	0.652	N
		H5c	Lean → differentiation	0.057	0.066	0.169	0.334	0.738	N
		H5d	Industry 4.0 → cost	−0.034	−0.020	0.122	0.281	0.779	N
		H5d	Industry 4.0 → differentiation	−0.147	−0.147	0.145	1.014	0.311	N
	H6: Business performance is influenced only by functional-level capabilities	H6a	Production dynamic capabilities → business performance	0.460	0.458	0.129	3.573	0.000***	Y	Partially supported
		H6b	Production ordinary capabilities → business performance	−0.376	−0.377	0.174	2.163	0.031**	N	Partially supported

Research question	Hypothesis	Hypothesis code	Direct effects	Regression coefficient	Mean	Standard deviation	T Statistics	p Value	Supported (Y); rejected (N)
RQ1: How are the layers of production capabilities interlinked?	H1: Production dynamic capabilities directly and positively influence production ordinary capabilities	H1	Production dynamic capabilities → Production ordinary capabilities	0.666	0.666	0.073	9.085	0.000***	Y	Supported
	H2: The level of deployment of lean methods influences the level of deployment of Industry 4.0	H2	Lean → Industry 4.0	0.312	0.316	0.113	2.759	0.006***	Y	Supported
	H3: Production capabilities positively influence shop floor production routines	H3a	Production dynamic capabilities → lean	−0.018	−0.021	0.147	0.122	0.903	N	Partially supported
		H3b	Production dynamic capabilities → Industry 4.0	0.317	0.328	0.110	2.883	0.004***	Y
		H3c	Production ordinary capabilities → lean	0.578	0.577	0.125	4.611	0.000***	Y
		H3d	Production ordinary capabilities → Industry 4.0	−0.003	−0.010	0.167	0.016	0.987	N
RQ2: How do they contribute to different dimensions of firm performance?	H4: Operational performance improvement contributes to better business performance	H4	Cost → business performance	0.226	0.232	0.119	1.907	0.057*	Y	Partially supported
			Differentiation → business performance	0.130	0.138	0.128	1.017	0.309	N
			Differentiation → cost	0.310	0.316	0.149	2.080	0.038**	Y
	H5: Operational performance improvement is influenced by each layer of capabilities	H5a	Production dynamic capabilities → cost	−0.173	−0.169	0.138	1.260	0.208	N	Not supported
		H5a	Production dynamic capabilities → differentiation	0.093	0.093	0.205	0.455	0.649	N
		H5b	Production ordinary capabilities → cost	0.249	0.244	0.178	1.399	0.162	N
		H5b	Production ordinary capabilities → differentiation	0.335	0.324	0.201	1.669	0.095*	Y
		H5c	Lean → cost	0.070	0.071	0.156	0.451	0.652	N
		H5c	Lean → differentiation	0.057	0.066	0.169	0.334	0.738	N
		H5d	Industry 4.0 → cost	−0.034	−0.020	0.122	0.281	0.779	N
		H5d	Industry 4.0 → differentiation	−0.147	−0.147	0.145	1.014	0.311	N
	H6: Business performance is influenced only by functional-level capabilities	H6a	Production dynamic capabilities → business performance	0.460	0.458	0.129	3.573	0.000***	Y	Partially supported
		H6b	Production ordinary capabilities → business performance	−0.376	−0.377	0.174	2.163	0.031**	N	Partially supported

Note(s): *p ≤ 0.10; **p ≤ 0.05; ***p ≤ 0.01

A hypothesis is supported if all the sub-hypotheses are supported; a hypothesis is partially supported (not supported) if more (less) sub-hypotheses are supported than rejected, or their numbers are equals

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