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Dynamic capabilities for circular manufacturing supply chains—Exploring the role of Industry 4.0 and resilience

Author

Listed:
  • Arpita Chari
  • Denis Niedenzu
  • Mélanie Despeisse
  • Carla Gonçalves Machado
  • João Domingues Azevedo
  • Rui Boavida‐Dias
  • Björn Johansson

Abstract

An organisation's sustainability performance is influenced by its capabilities (skills, resources and competences) which in turn affects the performance of its entire supply chain. However, recent research has not sufficiently explored the convergence of dynamic capabilities, circular economy, resilience and Industry 4.0 concepts for manufacturing supply chains. Therefore, this study aims to identify how dynamic capabilities theory can enable circular and resilient supply chains. A qualitative research process was deployed in three stages: literature review, European project and nine expert interviews. Key investigative variables were used to identify capabilities used in manufacturing, and five research propositions were developed to address the gaps found in literature. The empirical data helped reveal challenges to circular economy implementation and validate the literature findings. The main contributions include a dynamic capabilities model, a causal relationship model and five research propositions for circular economy implementation.

Suggested Citation

  • Arpita Chari & Denis Niedenzu & Mélanie Despeisse & Carla Gonçalves Machado & João Domingues Azevedo & Rui Boavida‐Dias & Björn Johansson, 2022. "Dynamic capabilities for circular manufacturing supply chains—Exploring the role of Industry 4.0 and resilience," Business Strategy and the Environment, Wiley Blackwell, vol. 31(5), pages 2500-2517, July.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:5:p:2500-2517
    DOI: 10.1002/bse.3040
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    7. Zhijuan Zong & Yu Guan, 2025. "AI-Driven Intelligent Data Analytics and Predictive Analysis in Industry 4.0: Transforming Knowledge, Innovation, and Efficiency," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 864-903, March.
    8. Ana Beatriz Lopes de Sousa Jabbour & H. Latan & C.J. Chiappetta Jabbour & B.M.R.P. Seles, 2023. "Does Applying a Circular Business Model Lead to Organizational Resilience? Mediating Effects of Industry 4.0 and Customers Integration," Post-Print hal-04276026, HAL.
    9. Srikant Gupta & Rajesh Kumar Singh & Chintan Amrit, 2025. "Integrating Industry 4.0 with Circular Economy Approach for Sustainable and Flexible Manufacturing Systems," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 26(1), pages 115-145, March.
    10. Isla Maria Cavalcante Nogueira Araújo & Cláudia Fabiana Gohr & Luciano Costa Santos, 2026. "Exploring the Integration Between Industry 4.0 Technologies and Circular Economy practices: a Systematic Literature Review and ISM/MICMAC Approach," Circular Economy and Sustainability, Springer, vol. 6(2), pages 1-32, April.
    11. Ashish Dwivedi & Claudio Sassanelli & Dindayal Agrawal & Md. Abdul Moktadir & Idiano D'Adamo, 2023. "Drivers to mitigate climate change in context of manufacturing industry: An emerging economy study," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4467-4484, November.
    12. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    13. Ahmet Çalık, 2025. "A novel resilient supplier and order allocation model with Pythagorean fuzzy sets based on Industry 4.0 initiatives," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(9), pages 22367-22395, September.
    14. Liu, Yanping & Farooque, Muhammad & Lee, Chang-Hun & Gong, Yu & Zhang, Abraham, 2023. "Antecedents of circular manufacturing and its effect on environmental and financial performance: A practice-based view," International Journal of Production Economics, Elsevier, vol. 260(C).
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    16. Junaid, Muhammad & Zhang, Qingyu & Cao, Mei & Luqman, Adeel, 2023. "Nexus between technology enabled supply chain dynamic capabilities, integration, resilience, and sustainable performance: An empirical examination of healthcare organizations," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    17. Padhi, Sidhartha S. & Mukherjee, Soumyatanu & Edwin Cheng, T.C., 2024. "Optimal investment decision for industry 4.0 under uncertainties of capability and competence building for managing supply chain risks," International Journal of Production Economics, Elsevier, vol. 267(C).
    18. Haoyang Wu & Jing Liu & Biming Liang, 2025. "AI-Driven Supply Chain Transformation in Industry 5.0: Enhancing Resilience and Sustainability," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3826-3868, March.
    19. Massari, Giovanni Francesco & Nacchiero, Raffaele & Giannoccaro, Ilaria, 2025. "Transformative supply chains: the enabling role of digital technologies," International Journal of Production Economics, Elsevier, vol. 283(C).
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    21. Alessandra Neri & Marta Negri & Enrico Cagno & Vikas Kumar & Jose Arturo Garza‐Reyes, 2023. "What digital‐enabled dynamic capabilities support the circular economy? A multiple case study approach," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 5083-5101, November.
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    23. Jianming Kang & Meiling Wu & Liu Liu, 2025. "Enhancing the Resilience of Resource-Based Cities: A Dual Analysis of the Driving Mechanisms and Spatial Effects of the Digital Economy," Sustainability, MDPI, vol. 17(21), pages 1-28, October.

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