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Supply chain firm performance in circular economy and digital era to achieve sustainable development goals

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  • Kirti Nayal
  • Shashank Kumar
  • Rakesh D. Raut
  • Maciel M. Queiroz
  • Pragati Priyadarshinee
  • Balkrishna E. Narkhede

Abstract

Digitalization of the supply chain (SC) has received plenty of attention from practitioners and researchers in recent years to address the challenges of the business environment and assist firms in achieving a circular SC. Implementing circularity in business operations is a practice of achieving sustainability which is of utmost significance for achieving sustainable development goals established by the United Nations. This study empirically examines the relation among flexibility, AI–IoT adoption, and SC firm performance under the circular economy (CE) environment based on resource orchestration theory (ROT), an integrated version of the extended‐resource‐based view, and dynamic capability theory (DCT). Data were collected from Indian manufacturing firms through a questionnaire‐based survey and examined using “structural equation modeling (SEM).” The study results show that information flexibility and organizational flexibility have the highest impact on AI–IoT adoption. Organizational flexibility shows full mediation with AI–IoT, which would influence the SC firm performance directly. The analysis also indicates that CE will affect the relation between organizational flexibility and AI–IoT adoption. These findings pave the way for cross‐country analysis, formation of practical strategies, and policies related to AI–IoT and CE implementations.

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  • Kirti Nayal & Shashank Kumar & Rakesh D. Raut & Maciel M. Queiroz & Pragati Priyadarshinee & Balkrishna E. Narkhede, 2022. "Supply chain firm performance in circular economy and digital era to achieve sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1058-1073, March.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:3:p:1058-1073
    DOI: 10.1002/bse.2935
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    3. Govindan, Kannan, 2023. "How digitalization transforms the traditional circular economy to a smart circular economy for achieving SDGs and net zero," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    4. Ritika Mahajan & Satish Kumar & Weng Marc Lim & Monica Sareen, 2024. "The role of business and management in driving the sustainable development goals (SDGs): Current insights and future directions from a systematic review," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4493-4529, July.
    5. Fazal Ur Rehman & Basheer M. Al-Ghazali & Adel Ghaleb Haddad & Ehab Abdullatif Qahwash & M. Sadiq Sohail, 2023. "Exploring the Reverse Relationship between Circular Economy Innovation and Digital Sustainability—The Dual Mediation of Government Incentives," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    6. Qingyu Zhang & Aman Ullah & Sana Ashraf & Muhammad Abdullah, 2024. "Synergistic Impact of Internet of Things and Big-Data-Driven Supply Chain on Sustainable Firm Performance," Sustainability, MDPI, vol. 16(13), pages 1-20, July.
    7. Fadhlur Rahim Azmi & Mastura Roni & Megawati Sa’at, 2024. "Circular Supply Chain Management in Developing Countries: Challenges, Opportunities and Pathways to Sustainability," Information Management and Business Review, AMH International, vol. 16(1), pages 105-115.
    8. Ruchi Mishra & Rajesh Kr Singh & Nripendra P. Rana, 2024. "Digital orientation, digital eco‐innovation and circular economy in the context of sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2752-2770, May.
    9. Imadeddine Oubrahim & Naoufal Sefiani & Ari Happonen, 2023. "The Influence of Digital Transformation and Supply Chain Integration on Overall Sustainable Supply Chain Performance: An Empirical Analysis from Manufacturing Companies in Morocco," Energies, MDPI, vol. 16(2), pages 1-24, January.

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