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Purpose This paper aims to empirically examine the impact of dynamic capabilities on Industry 4.0 capabilities in small and medium enterprises (SMEs) in Jordan. It also aims to examine the potential impact of industry 4.0 capabilities on technological innovation. Design/methodology/approach Data were collected from 210 respondents who work and own SMEs in Jordan. SmartPLS software based on the partial least squares-structural equation modeling approach was used to test hypotheses. Findings The findings reveal the positive effects of the three components of dynamic capabilities, including sensing, seizing and reconfiguring, on Industry 4.0 capabilities. They also confirm the positive effect of Industry 4.0 capabilities on technological innovation. Originality/value This study provides valuable practical implications and enriches the literature on the determinants of Industry 4.0 capabilities and its role in developing the dynamic capabilities of SMEs, such as technological innovation.
Al‐Khatib et al. (2023) studied this question.