Regenerative supply chains for high-value-added food manufacturing

This paper proposes a transformation model that translates circular economy principles into regenerative supply chains (RSC) and evaluates their subsequent impact on high-value-added food manufacturing (HVF). Grounded in the Natural Resource-Based View (NRBV), the study is positioned at the nexus of technological adoption, supply chain transformation, and broader sustainability imperatives. It specifically examines how strategic technological decisions reshape business and ecological systems. Empirical data were collected from 235 senior managers across the Malaysian food and beverage supply chain and analysed using partial least squares structural equation modelling (PLS-SEM). To ensure methodological rigour, the analysis was complemented by a Gaussian copula endogeneity approach and Necessary Condition Analysis (NCA). As the sample comprises firms with established advanced technologies and high-value-added systems, the findings reflect the optimisation strategies of technologically mature organisations rather than baseline adoption pathways. The results demonstrate that circular product design (CPD) directly enhances both RSC and HVF outcomes. By contrast, circular procurement (CPC) and cleaner production (CPR) enhance HVF performance through the full mediation of RSC. These findings establish RSC as a critical intermediary and a non-negotiable prerequisite for achieving high-value manufacturing and competitive advantage. Furthermore, the study explores how AI-enabled supply chain capabilities and inter-organisational cooperation amplify the CPD–RSC–HVF pathway, bridging circular practices with technology-driven societal transformation. The model integrates waste-to-value technologies, reverse logistics, and digital traceability to demonstrate how RSC transform resource-intensive food systems into restorative, resilient ecosystems.