IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i8p7855-7886.html
   My bibliography  Save this article

Unveiling barriers to the integration of blockchain‐based circular economy and Industry 5.0 in manufacturing industries: A strategic prioritization approach

Author

Listed:
  • Devika Kannan
  • Alireza Shamekhi Amiri
  • Mayssam Tarighi Shaayesteh
  • Arash Khalili Nasr
  • Hassan Mina

Abstract

Although Industry 4.0 plays the role of a catalyst in the transition from a linear economy to a circular economy (CE), some sustainability goals are neglected by prioritizing machines over humans. Industry 5.0 insists on combining technology with human values to achieve sustainable development goals. Therefore, the integration of CE and Industry 5.0 leads to sustainable synergy in various industries, especially in manufacturing industries. However, their integration is always associated with challenges and barriers. This study identifies a set of these barriers in the electric vehicle battery production industry from the financial, technical, supply chain, cultural, and regulatory and processes perspectives through a deep literature review. The fuzzy weighted influence non‐linear gauge system method is used to analyze the relationship between identified barriers and their prioritization. Finally, we leverage the knowledge of four experts from an electric vehicle battery manufacturing company in Southeast Asia to validate the proposed approach and to rank the barriers. The results demonstrate that immature technology providers are the biggest obstacle in the integration of blockchain‐based CE and Industry 5.0 in the electric vehicle battery manufacturing industry.

Suggested Citation

  • Devika Kannan & Alireza Shamekhi Amiri & Mayssam Tarighi Shaayesteh & Arash Khalili Nasr & Hassan Mina, 2024. "Unveiling barriers to the integration of blockchain‐based circular economy and Industry 5.0 in manufacturing industries: A strategic prioritization approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7855-7886, December.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:8:p:7855-7886
    DOI: 10.1002/bse.3886
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3886
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3886?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nallapaneni Manoj Kumar & Shauhrat S. Chopra, 2022. "Leveraging Blockchain and Smart Contract Technologies to Overcome Circular Economy Implementation Challenges," Sustainability, MDPI, vol. 14(15), pages 1-18, August.
    2. Truong Van Nguyen & Hiep Cong Pham & Minh Nhat Nguyen & Li Zhou & Mohammadreza Akbari, 2023. "Data-driven review of blockchain applications in supply chain management: key research themes and future directions," International Journal of Production Research, Taylor & Francis Journals, vol. 61(23), pages 8213-8235, December.
    3. Singh, Rajesh Kumar & Kumar, Anil & Garza-Reyes, Jose Arturo & de Sá, Marcelo M., 2020. "Managing operations for circular economy in the mining sector: An analysis of barriers intensity," Resources Policy, Elsevier, vol. 69(C).
    4. Dimitris Mourtzis & John Angelopoulos & Nikos Panopoulos, 2022. "A Literature Review of the Challenges and Opportunities of the Transition from Industry 4.0 to Society 5.0," Energies, MDPI, vol. 15(17), pages 1-29, August.
    5. Anish Kumar & Sachin Kumar Mangla & Pradeep Kumar, 2022. "Barriers for adoption of Industry 4.0 in sustainable food supply chain: a circular economy perspective," International Journal of Productivity and Performance Management, Emerald Group Publishing Limited, vol. 73(2), pages 385-411, February.
    6. Ying Peng & Xu Chen & Xiaojun Wang, 2023. "Enhancing supply chain flows through blockchain: a comprehensive literature review," International Journal of Production Research, Taylor & Francis Journals, vol. 61(13), pages 4503-4524, July.
    7. Kannan Govindan & Mia Hasanagic, 2018. "A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 278-311, January.
    8. Chaudhuri, Atanu & Subramanian, Nachiappan & Dora, Manoj, 2022. "Circular economy and digital capabilities of SMEs for providing value to customers: Combined resource-based view and ambidexterity perspective," Journal of Business Research, Elsevier, vol. 142(C), pages 32-44.
    9. V.V. Gedam & R.D. Raut & Ana Beatriz Lopes de Sousa Jabbour & A.N. Tanksale & B.E. Narkhede, 2021. "Circular Economy Practices in a Developing Economy: Barriers to Be Defeated," Post-Print hal-04275963, HAL.
    10. Kannan Govindan & Arash Khalili Nasr & Mohammad Saeed Heidary & Saeede Nosrati-Abarghooee & Hassan Mina, 2023. "Prioritizing adoption barriers of platforms based on blockchain technology from balanced scorecard perspectives in healthcare industry: a structural approach," International Journal of Production Research, Taylor & Francis Journals, vol. 61(11), pages 3512-3526, June.
    11. Bressanelli, Gianmarco & Visintin, Filippo & Saccani, Nicola, 2022. "Circular Economy and the evolution of industrial districts: a supply chain perspective," International Journal of Production Economics, Elsevier, vol. 243(C).
    12. Castagnoli, Rebecca & Büchi, Giacomo & Coeurderoy, Régis & Cugno, Monica, 2022. "Evolution of industry 4.0 and international business: A systematic literature review and a research agenda," European Management Journal, Elsevier, vol. 40(4), pages 572-589.
    13. Kris Hartley & Jasper Roosendaal & Julian Kirchherr, 2022. "Barriers to the circular economy: The case of the Dutch technical and interior textiles industries," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 477-490, April.
    14. 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.
    15. Yildizbasi, Abdullah, 2021. "Blockchain and renewable energy: Integration challenges in circular economy era," Renewable Energy, Elsevier, vol. 176(C), pages 183-197.
    16. Sindhwani, Rahul & Afridi, Shayan & Kumar, Anil & Banaitis, Audrius & Luthra, Sunil & Singh, Punj Lata, 2022. "Can industry 5.0 revolutionize the wave of resilience and social value creation? A multi-criteria framework to analyze enablers," Technology in Society, Elsevier, vol. 68(C).
    17. Govindan, Kannan, 2024. "Unlocking the potential of quality as a core marketing strategy in remanufactured circular products: A machine learning enabled multi-theoretical perspective," International Journal of Production Economics, Elsevier, vol. 269(C).
    18. T. C. Edwin Cheng & Sachin S. Kamble & Amine Belhadi & Nelson Oly Ndubisi & Kee-hung Lai & Manoj Govind Kharat, 2022. "Linkages between big data analytics, circular economy, sustainable supply chain flexibility, and sustainable performance in manufacturing firms," International Journal of Production Research, Taylor & Francis Journals, vol. 60(22), pages 6908-6922, November.
    19. Hamed Nayernia & Hanna Bahemia & Savvas Papagiannidis, 2022. "A systematic review of the implementation of industry 4.0 from the organisational perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 60(14), pages 4365-4396, July.
    20. Govindan, Kannan & Salehian, Farhad & Kian, Hadi & Hosseini, Seyed Teimoor & Mina, Hassan, 2023. "A location-inventory-routing problem to design a circular closed-loop supply chain network with carbon tax policy for achieving circular economy: An augmented epsilon-constraint approach," International Journal of Production Economics, Elsevier, vol. 257(C).
    21. Xu, Song & Govindan, Kannan & Wang, Wanru & Yang, Wenting, 2024. "Supply chain management under cap-and-trade regulation: A literature review and research opportunities," International Journal of Production Economics, Elsevier, vol. 271(C).
    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. Arijit Bhattacharya & Shefali Srivastava & Abhijit Majumdar, 2024. "Circular supply chains in manufacturing—Quo vadis? Accomplishments, challenges and future opportunities," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4397-4423, July.
    2. Swati Kasana & Meena Chavan & Darshana Sedera & Zhiming Cheng & Max Ganzin, 2024. "Unlocking circular start‐ups: A model of barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 33(3), pages 2546-2577, March.
    3. Kannan Govindan & Arash Khalili Nasr & Farzane Karimi & Hassan Mina, 2022. "Circular economy adoption barriers: An extended fuzzy best–worst method using fuzzy DEMATEL and Supermatrix structure," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1566-1586, May.
    4. Osei, Vivian & Bai, Chunguang & Asante-Darko, Disraeli & Quayson, Matthew, 2023. "Evaluating the barriers and drivers of adopting circular economy for improving sustainability in the mining industry," Resources Policy, Elsevier, vol. 86(PB).
    5. Govindan, Kannan & Demartini, Melissa & Formentini, Marco & Taticchi, Paolo & Tonelli, Flavio, 2024. "Unravelling and mapping the theoretical foundations of sustainable supply chains: A literature review and research agenda," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 189(C).
    6. Moritz Böhmecke‐Schwafert & Marie Wehinger & Robin Teigland, 2022. "Blockchain for the circular economy: Theorizing blockchain's role in the transition to a circular economy through an empirical investigation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3786-3801, December.
    7. Harshad Sonar & Nikhil Ghag & Yashomandira Kharde & Shriya Ghosh, 2023. "Analysis of barriers affecting circular economy adoption in food supply chain: A strategic perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5273-5288, December.
    8. Damini Sundar & Kaliyan Mathiyazhagan & Vernika Agarwal & Mukund Janardhanan & Andrea Appolloni, 2023. "From linear to a circular economy in the e‐waste management sector: Experience from the transition barriers in the United Kingdom," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4282-4298, November.
    9. Rohit Agrawal & Vishal A. Wankhede & Anil Kumar & Sunil Luthra, 2021. "Analysing the roadblocks of circular economy adoption in the automobile sector: Reducing waste and environmental perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 1051-1066, February.
    10. 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.
    11. Patricia van Loon & Luk N. Van Wassenhove & Ales Mihelic, 2022. "Designing a circular business strategy: 7 years of evolution at a large washing machine manufacturer," Business Strategy and the Environment, Wiley Blackwell, vol. 31(3), pages 1030-1041, March.
    12. Abderahman Rejeb & Karim Rejeb & Suhaiza Zailani & Yasanur Kayikci & John G. Keogh, 2023. "Examining Knowledge Diffusion in the Circular Economy Domain: a Main Path Analysis," Circular Economy and Sustainability, Springer, vol. 3(1), pages 125-166, March.
    13. Davies, Jennifer & Sharifi, Hossein & Lyons, Andrew & Forster, Rick & Elsayed, Omar Khaled Shokry Mohamed, 2024. "Non-fungible tokens: The missing ingredient for sustainable supply chains in the metaverse age?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    14. Jose García‐Quevedo & Elisenda Jové‐Llopis & Ester Martínez‐Ros, 2020. "Barriers to the circular economy in European small and medium‐sized firms," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2450-2464, September.
    15. Jeff Mangers & Meysam Minoufekr & Peter Plapper & Sri Kolla, 2021. "An Innovative Strategy Allowing a Holistic System Change towards Circular Economy within Supply-Chains," Energies, MDPI, vol. 14(14), pages 1-17, July.
    16. 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.
    17. Arezoo Ghazanfari, 2023. "An Analysis of Circular Economy Literature at the Macro Level, with a Particular Focus on Energy Markets," Energies, MDPI, vol. 16(4), pages 1-24, February.
    18. Antonella Zucchella & Pietro Previtali & Roger Strange, 2022. "Proactive and reactive views in the transition towards circular business models. A grounded study in the plastic packaging industry," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1073-1102, September.
    19. Gianmarco Bressanelli & Federico Adrodegari & Daniela C. A. Pigosso & Vinit Parida, 2022. "Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    20. Abderahman Rejeb & Karim Rejeb & John G. Keogh & Suhaiza Zailani, 2022. "Barriers to Blockchain Adoption in the Circular Economy: A Fuzzy Delphi and Best-Worst Approach," Sustainability, MDPI, vol. 14(6), pages 1-23, March.

    More about this item

    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:bla:bstrat:v:33:y:2024:i:8:p:7855-7886. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    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.