Industry 4.0 Manufacturing Practices and Operational Performance: The Mediating Roles of Production Systems Integration and Supply Chain Agility

Based on a holistic structural model framework, this study examines how Industry 4.0 manufacturing applications impact production system integration, supply chain agility, and operational performance. It has become increasingly important for businesses in recent years to focus on digital transformation and smart manufacturing technologies. In light of this, this study examines the effects of Industry 4.0 applications on the operational capabilities of businesses and their impact on performance. Using Partial Least Squares Structural Equation Modeling (PLS-SEM) as a means of data analysis, the study also evaluated the predictive power of the research model using PLSpredict. A total of 300 manufacturers participated in the research, and the data obtained from 300 of them was analyzed and found to have a strong and significant effect on the integration of production systems. In addition, it was found that production system integration improves supply chain agility, and supply chain agility impacts operational performance positively and significantly. Industry 4.0 applications largely impact operational performance through production system integration and supply chain agility, according to mediation results. Based on the results of PLSpredict, the research model is not only explanatory but also predictive. As a result, the research shows that Industry 4.0 production applications enhance business performance by increasing innovation capacity and supply chain agility, while also serving as a technological transformation tool for businesses. Beyond its operational implications, the study also suggests that Industry 4.0-enabled integration and agility may support more resilient and sustainability-oriented manufacturing sys-tems. As such, the research contributes to both theoretical and managerial literature on digital production technologies and operations management.