Purpose: The research examines the mediation role of digital transformation in the adoption of green manufacturing practices and introduction of sustainable performance in micro, small, and medium enterprises (MSMEs) manufacturing in Tamil Nadu in India. There are more than 3.5 million registered MSMEs in Tamil Nadu (textiles, automotive parts, leather products and precision engineering) with a total contribution of about 8% to the Gross State Domestic Product (GSDP) of the state and more than 25 million employments. Although with this industrial role, the opportunities of Industry 4.0 technologies to boost MSME competitiveness and environmental performance in the same direction have not been properly investigated in the context of the regional emerging-economy.
Methodology: A PRISMA-based systematic literature review (SLR) was undertaken in four large databases (Scopus, Web of Science, ScienceDirect, and Google Scholar) that included peer-reviewed articles to support the years 2015 to 2024. After screening had taken place according to a four-step process, a final corpus of 33 studies underwent thematic analysis.
Findings: The following three mutually reinforcing themes were found: (1) Industry 4.0 technologies as the sources of manufacturing transformation; (2) digital technologies as structural enablers of green manufacturing, through real-time monitoring, predictive optimisation and integration of the cycle economy; and (3) sustainable outcomes in performance measured by the triple-bottom-line (TBL) framework. An imagined framework of Digital-Green Transformation (DGT) and five propositions of research that can be tested is created. The main challenges to adoption are financial constraints, the complexity of technology and lack of digital skills.
Originality / Value: The paper is the first attempt at combining Industry 4.0, green manufacturing, and TBL performance in the context of a particular institutional and industrial setting, i.e., in Tamil Nadu manufacturing MSMEs. The research propositions and DGT framework promote the context-heavy viewpoint of sustainability transition theory in emerging economy manufacturing and furnish contextually appropriate policy production straight to regional policy makers, managers of MSME, and furnish technology suppliers. The results of the study are explicitly mapped to the UN Sustainable Development Goals 8, 9, 12, 13, and 17.