IDEAS home Printed from https://ideas.repec.org/p/zbw/esprep/341047.html

How Industry 4.0 Technologies (Smart Manufacturing, and Data Processing Technologies) Impact Circular Economy: The Mediatory Role of SC Integration, SC Collaboration and SC Visibility

Author

Listed:
  • Ahmed, Owais
  • Siddiqui, Danish Ahmed

Abstract

This study explores how the influence of Industry 4.0 technologies affects circular economy (CE) adoption. Drawing on the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), the study develops a conceptual model incorporating smart manufacturing technologies, data processing capabilities, and IT infrastructure as drivers of digital transformation. We contend that Industry 4.0 technologies such as Smart Manufacturing, and Data Processing technologies, increase Supply Chain integration (SCI), which will in turn enhance Supply chain collaboration, and visibility leading to a Circular Economy (CE). We also infer that the effect of Industry 4.0 technologies on SCI is moderated by IT Advancement in a way that high levels of advancement will make these relationships more pronounced. Using data collected from 343 professionals across diverse industries in Pakistan, the model is tested through Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal that smart manufacturing and data processing technologies significantly enhance SCI, which in turn positively affects collaboration, visibility, and circularity. IT advancement strengthens the relationship between digital technologies and SCI. The study contributes to the theoretical understanding of digital transformation and sustainability and offers practical guidance for firms aiming to build resilient and environmentally responsible supply chains.

Suggested Citation

  • Ahmed, Owais & Siddiqui, Danish Ahmed, 2026. "How Industry 4.0 Technologies (Smart Manufacturing, and Data Processing Technologies) Impact Circular Economy: The Mediatory Role of SC Integration, SC Collaboration and SC Visibility," EconStor Preprints 341047, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:341047
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/341047/1/Thesis-Owais-Ahmed.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schniederjans, Dara G. & Curado, Carla & Khalajhedayati, Mehrnaz, 2020. "Supply chain digitisation trends: An integration of knowledge management," International Journal of Production Economics, Elsevier, vol. 220(C).
    2. Ataseven, Cigdem & Nair, Anand, 2017. "Assessment of supply chain integration and performance relationships: A meta-analytic investigation of the literature," International Journal of Production Economics, Elsevier, vol. 185(C), pages 252-265.
    3. Genovese, Andrea & Acquaye, Adolf A. & Figueroa, Alejandro & Koh, S.C. Lenny, 2017. "Sustainable supply chain management and the transition towards a circular economy: Evidence and some applications," Omega, Elsevier, vol. 66(PB), pages 344-357.
    4. Kirchherr, Julian & Piscicelli, Laura & Bour, Ruben & Kostense-Smit, Erica & Muller, Jennifer & Huibrechtse-Truijens, Anne & Hekkert, Marko, 2018. "Barriers to the Circular Economy: Evidence From the European Union (EU)," Ecological Economics, Elsevier, vol. 150(C), pages 264-272.
    5. David J. Teece & Gary Pisano & Amy Shuen, 1997. "Dynamic capabilities and strategic management," Strategic Management Journal, Wiley Blackwell, vol. 18(7), pages 509-533, August.
    6. Dmitry Ivanov & Alexandre Dolgui & Boris Sokolov, 2019. "The impact of digital technology and Industry 4.0 on the ripple effect and supply chain risk analytics," International Journal of Production Research, Taylor & Francis Journals, vol. 57(3), pages 829-846, February.
    7. De Marchi, Valentina, 2012. "Environmental innovation and R&D cooperation: Empirical evidence from Spanish manufacturing firms," Research Policy, Elsevier, vol. 41(3), pages 614-623.
    8. Vasja Roblek & Maja Meško & Alojz Krapež, 2016. "A Complex View of Industry 4.0," SAGE Open, , vol. 6(2), pages 21582440166, June.
    9. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    10. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    11. Prajogo, Daniel & Olhager, Jan, 2012. "Supply chain integration and performance: The effects of long-term relationships, information technology and sharing, and logistics integration," International Journal of Production Economics, Elsevier, vol. 135(1), pages 514-522.
    12. Vachon, Stephan & Klassen, Robert D., 2008. "Environmental management and manufacturing performance: The role of collaboration in the supply chain," International Journal of Production Economics, Elsevier, vol. 111(2), pages 299-315, February.
    13. Constance E. Helfat & Margaret A. Peteraf, 2003. "The dynamic resource‐based view: capability lifecycles," Strategic Management Journal, Wiley Blackwell, vol. 24(10), pages 997-1010, October.
    14. Opresnik, David & Taisch, Marco, 2015. "The value of Big Data in servitization," International Journal of Production Economics, Elsevier, vol. 165(C), pages 174-184.
    15. Weller, Christian & Kleer, Robin & Piller, Frank T., 2015. "Economic implications of 3D printing: Market structure models in light of additive manufacturing revisited," International Journal of Production Economics, Elsevier, vol. 164(C), pages 43-56.
    16. Kesidou, Effie & Demirel, Pelin, 2012. "On the drivers of eco-innovations: Empirical evidence from the UK," Research Policy, Elsevier, vol. 41(5), pages 862-870.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eleonora Di Maria & Valentina De Marchi & Ambra Galeazzo, 2022. "Industry 4.0 technologies and circular economy: The mediating role of supply chain integration," Business Strategy and the Environment, Wiley Blackwell, vol. 31(2), pages 619-632, February.
    2. Chamari Pamoshika Jayarathna & Duzgun Agdas & Les Dawes, 2023. "Exploring sustainable logistics practices toward a circular economy: A value creation perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 704-720, January.
    3. Adrián Rabadán & Ángela Triguero & Ángela Gonzalez-Moreno, 2020. "Cooperation as the Secret Ingredient in the Recipe to Foster Internal Technological Eco-Innovation in the Agri-Food Industry," IJERPH, MDPI, vol. 17(7), pages 1-19, April.
    4. Zhao, Nanyang & Hong, Jiangtao & Lau, Kwok Hung, 2023. "Impact of supply chain digitalization on supply chain resilience and performance: A multi-mediation model," International Journal of Production Economics, Elsevier, vol. 259(C).
    5. Belhadi, Amine & Kamble, Sachin S. & Chiappetta Jabbour, Charbel Jose & Mani, Venkatesh & Khan, Syed Abdul Rehman & Touriki, Fatima Ezahra, 2022. "A self-assessment tool for evaluating the integration of circular economy and industry 4.0 principles in closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 245(C).
    6. Na Li & Xiaohong Wang & Shaopeng Zhang, 2023. "Effects of digitization on enterprise growth performance: Mediating role of strategic change and moderating role of dynamic capability," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(2), pages 1040-1053, March.
    7. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    8. Caroline Danièle Mothe & Thuc Uyen Nguyen-Thi, 2017. "Persistent openness and environmental innovation: An empirical analysis of French manufacturing firms," Post-Print hal-01609129, HAL.
    9. Samadhiya, Ashutosh & Yadav, Sanjeev & Kumar, Anil & Majumdar, Abhijit & Luthra, Sunil & Garza-Reyes, Jose Arturo & Upadhyay, Arvind, 2023. "The influence of artificial intelligence techniques on disruption management: Does supply chain dynamism matter?," Technology in Society, Elsevier, vol. 75(C).
    10. Graziela Darla Araujo Galvão & Steve Evans & Paulo Sergio Scoleze Ferrer & Marly Monteiro de Carvalho, 2022. "Circular business model: Breaking down barriers towards sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1504-1524, May.
    11. Fosso Wamba, Samuel & Queiroz, Maciel M. & Trinchera, Laura, 2024. "The role of artificial intelligence-enabled dynamic capability on environmental performance: The mediation effect of a data-driven culture in France and the USA," International Journal of Production Economics, Elsevier, vol. 268(C).
    12. Li, Ying & Dai, Jing & Cui, Li, 2020. "The impact of digital technologies on economic and environmental performance in the context of industry 4.0: A moderated mediation model," International Journal of Production Economics, Elsevier, vol. 229(C).
    13. Kirti Nayal & Rakesh D. Raut & Balkrishna E. Narkhede & Pragati Priyadarshinee & Gajanan B. Panchal & Vidyadhar V. Gedam, 2023. "Antecedents for blockchain technology-enabled sustainable agriculture supply chain," Annals of Operations Research, Springer, vol. 327(1), pages 293-337, August.
    14. Concepción Garcés-Ayerbe & Pilar Rivera-Torres & Inés Suárez-Perales & Dante I. Leyva-de la Hiz, 2019. "Is It Possible to Change from a Linear to a Circular Economy? An Overview of Opportunities and Barriers for European Small and Medium-Sized Enterprise Companies," IJERPH, MDPI, vol. 16(5), pages 1-15, March.
    15. Chembessi Chedrak & Gohoungodji Paulin & Juste Rajaonson, 2023. "“A fine wine, better with age”: Circular economy historical roots and influential publications: A bibliometric analysis using Reference Publication Year Spectroscopy (RPYS)," Journal of Industrial Ecology, Yale University, vol. 27(6), pages 1593-1612, December.
    16. Georgios Lanaras-Mamounis & Anastasios Kipritsis & Thomas A. Tsalis & Konstantinos Ι. Vatalis & Ioannis E. Nikolaou, 2022. "A Framework for Assessing the Contribution of Firms to Circular Economy: a Triple-Level Approach," Circular Economy and Sustainability, Springer, vol. 2(3), pages 883-902, September.
    17. Doussoulin, Jean Pierre & Bittencourt, Mariana, 2022. "How effective is the construction sector in promoting the circular economy in Brazil and France? : A waste input-output analysis," Structural Change and Economic Dynamics, Elsevier, vol. 60(C), pages 47-58.
    18. Marzucchi, Alberto & Montresor, Sandro, 2017. "Forms of knowledge and eco-innovation modes: Evidence from Spanish manufacturing firms," Ecological Economics, Elsevier, vol. 131(C), pages 208-221.
    19. Seyedesmaeil Mousavi & Bart Bossink & Mario van Vliet, 2019. "Microfoundations of companies' dynamic capabilities for environmentally sustainable innovation: Case study insights from high‐tech innovation in science‐based companies," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 366-387, February.
    20. Sanni, Maruf, 2018. "Drivers of eco-innovation in the manufacturing sector of Nigeria," Technological Forecasting and Social Change, Elsevier, vol. 131(C), pages 303-314.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;
    ;

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    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:zbw:esprep:341047. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    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.