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

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  • 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.

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  • 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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    References listed on IDEAS

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    Cited by:

    1. Ingvild Reine Assmann & Francesco Rosati & Sandra Naomi Morioka, 2023. "Determinants of circular business model adoption—A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6008-6028, December.
    2. 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.
    3. 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).
    4. 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).
    5. 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.
    6. 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).
    7. 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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