IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v25y2023i12d10.1007_s10668-022-02670-3.html
   My bibliography  Save this article

The influence of artificial intelligence adoption on circular economy practices in manufacturing industries

Author

Listed:
  • Mohammad Hossein Ronaghi

    (Shiraz University)

Abstract

Considering the increase in the stakeholders’ supervision and the change of production processes, sustainable development plays a crucial role in the survival of businesses. In order to achieve sustainable development, the circular economy (CE) seeks to manage the flow of materials and energy to closed-loop systems. Circular economy has led to the formation of sustainable business models. Artificial intelligence (AI) capabilities change work activities, data flows, and organizational processes. The purpose of this study is to identify the impact of adoption of AI on circular economy practices in the organization. The research questions include: What are the factors affecting the adoption of AI in manufacturing companies? What effect does the adoption of AI have on the CE practices in the organization? In the first phase, research constructs are identified and a conceptual model is developed based on previous studies. In the second phase, the research model is evaluated among 97 manufacturing companies in the Middle East. Structural equation model and Smart PLS software have been used for data analysis. The findings show that the technology characteristics, organizational capabilities and external task environment have an effect on adoption of AI, and adoption of AI has a positive effect on circular economy practices. Based on the results, AI technology can be a solution to change the production process and reduce the destructive effects of industry on the environment. Managers of manufacturing companies can use the capabilities of machine learning, intelligence and neural networks to manage resources and optimize product production.

Suggested Citation

  • Mohammad Hossein Ronaghi, 2023. "The influence of artificial intelligence adoption on circular economy practices in manufacturing industries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(12), pages 14355-14380, December.
    • Handle: RePEc:spr:endesu:v:25:y:2023:i:12:d:10.1007_s10668-022-02670-3
    DOI: 10.1007/s10668-022-02670-3
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-022-02670-3
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10668-022-02670-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:25:y:2023:i:12:d:10.1007_s10668-022-02670-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.