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‘Better together’: Evidence on the joint adoption of circular economy and industry 4.0 technologies

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  • Lopes de Sousa Jabbour, Ana Beatriz
  • Chiappetta Jabbour, Charbel Jose
  • Choi, Tsan-Ming
  • Latan, Hengky

Abstract

The circular economy (CE) and Industry 4.0 are both vital new perspectives in production economics and operations management. However, it remains largely unclear whether or not there are complementary effects on performance which can be achieved by adopting them together. This paper bridges this gap through an empirical study. Drawing upon the resource-based view and complementarity theory, original quantitative primary data is collected through a survey of supply chain managers working for companies operating in Brazil. The individual and joint effects on sustainability of adopting CE and Industry 4.0 technologies (including economic, environmental, and social measures) and firms’ operational performance are examined. Our original findings indicate that there is indeed a synergistic effect on performance resulting from joint adoption of CE and Industry 4.0 technologies; in addition, the isolated adoption of Industry 4.0 technologies does not affect social performance. However, through the joint adoption of CE and Industry 4.0 technologies, a positive influence on social performance is identified. This paper contributes to the literature by (i) confirming a potential synergistic effect between CE and Industry 4.0 technologies, as well as revealing their importance to business operations and social performance, and (ii) extending the contributions of previous conceptual and exploratory studies on the nexus of CE and Industry 4.0.

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  • Lopes de Sousa Jabbour, Ana Beatriz & Chiappetta Jabbour, Charbel Jose & Choi, Tsan-Ming & Latan, Hengky, 2022. "‘Better together’: Evidence on the joint adoption of circular economy and industry 4.0 technologies," International Journal of Production Economics, Elsevier, vol. 252(C).
    • Handle: RePEc:eee:proeco:v:252:y:2022:i:c:s0925527322001700
    DOI: 10.1016/j.ijpe.2022.108581
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    2. Saoussane Srhir & Anicia Jaegler & Jairo R. Montoya‐Torres, 2023. "Uncovering Industry 4.0 technology attributes in sustainable supply chain 4.0: A systematic literature review," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4143-4166, November.
    3. Saumyaranjan Sahoo & Arvind Upadhyay & Anil Kumar, 2023. "Circular economy practices and environmental performance: Analysing the role of big data analytics capability and responsible research and innovation," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6029-6046, December.
    4. Alessandra Neri & Marta Negri & Enrico Cagno & Simone Franzò & Vikas Kumar & Tommaso Lampertico & Carlo Andrea Bassani, 2023. "The role of digital technologies in supporting the implementation of circular economy practices by industrial small and medium enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4693-4718, November.
    5. 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.
    6. Liu, Fuzhen & He, Chaocheng & Lai, Kee-hung, 2024. "Market reaction to responsible production practices adoption: The role of firm size and financial slack," International Journal of Production Economics, Elsevier, vol. 272(C).
    7. Walter Cardoso Satyro & Jose Celso Contador & Sonia Francisca de Paula Monken & Anderson Ferreira de Lima & Gilberto Gomes Soares Junior & Jansen Anderson Gomes & João Victor Silva Neves & José Robert, 2023. "Industry 4.0 Implementation Projects: The Cleaner Production Strategy—A Literature Review," Sustainability, MDPI, vol. 15(3), pages 1-18, January.
    8. Calabrese, Armando & Costa, Roberta & Tiburzi, Luigi & Brem, Alexander, 2023. "Merging two revolutions: A human-artificial intelligence method to study how sustainability and Industry 4.0 are intertwined," Technological Forecasting and Social Change, Elsevier, vol. 188(C).

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