The Impact of Industry 4.0 Practices on Sustainable Performance in Jordan’s Retail Sector: The Moderating Role of Environmental Dynamism

<i>Background</i>: The retail sector in Jordan is adopting Industry 4.0 (I4.0) technologies to enhance efficiency and sustainability. Nevertheless, there is a lack of empirical evidence to inform retail managers regarding the impact of I4.0 adoption on environmental, economic, and social sustainability, particularly in dynamic contexts. Therefore, this study aims to investigate the impact of Industry 4.0 on the three types of sustainable performance, with the moderating effect of environmental dynamism. <i>Methods</i>: This quantitative study collected data using a cross-sectional survey of 100 retail professionals from large companies that was analyzed using structural equation modeling (SEM) to test the hypotheses. <i>Results</i>: I4.0 practices improved retail environmental, economic, and social sustainability. Additionally, environmental dynamism moderated the relationship between I4.0 and environmental sustainability, suggesting that dynamic environments may reduce the effectiveness of I4.0 technologies in driving environmental performance. Economic and social sustainability had no significant moderating effects. <i>Conclusions</i>: This study examines the sustainability benefits of I4.0 adoption in an unexplored developing economy. It emphasizes the strategic importance of digital transformation for retail sustainability and provides practical recommendations for dynamic markets. The findings support I4.0 technologies role in sustainable growth and lay the groundwork for digital transformation research in emerging markets.