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Integrated Impact of Circular Economy, Industry 4.0, and Lean Manufacturing on Sustainability Performance of Manufacturing Firms

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  • Ahmed M. Ghaithan

    (Construction Engineering and Management Department, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia
    Interdisciplinary Research Center of Smart Mobility and Logistics, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia)

  • Yasser Alshammakhi

    (Construction Engineering and Management Department, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia)

  • Awsan Mohammed

    (Construction Engineering and Management Department, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia
    Interdisciplinary Research Center of Smart Mobility and Logistics, King Fahd University of Petroleum and Minerals, Dhahran 31261, Saudi Arabia)

  • Khwaja Mateen Mazher

    (Construction Engineering and Management Department, King Fahd University of Petroleum & Minerals, Dhahran 31261, Saudi Arabia)

Abstract

In today’s business environment, contributions made by the manufacturing sector to the economy and social development is evident. With a focus on long-term development, the manufacturing sector has adopted advanced operating strategies, such as lean manufacturing, industry 4.0, and green practices in an integrated manner. The integrated impact of circular economy, industry 4.0, and lean manufacturing on sustainability performance has not been adequately addressed and investigated. Therefore, the aim of this study is to investigate the integrated impact of circular economy, industry 4.0, and lean manufacturing on the sustainability performance of organizations in Saudi Arabia. Data were collected through a questionnaire-based survey as a primary data instrument. A total of 486 organizations have responded to the survey within the timeframe. Moreover, the structural equation modeling method is utilized for data analysis through SmartPLS tool for the developed hypotheses of the research. The findings highlight the positive impact of circular economy on the sustainability of the organizations. Furthermore, the results indicate that industry 4.0 and lean manufacturing have positive mediating impacts as enablers for the successful implementation of circular economy toward the sustainable performance of organizations in Saudi Arabia. The study finding confirms that lean manufacturing is a substantial mediating variable that is essential for the successful implementation of industry 4.0 technologies. Moreover, the study indicates the recognition and acknowledgment of companies on circular economy principles, industry 4.0 technologies, and lean manufacturing tools to achieve the desired sustainability.

Suggested Citation

  • Ahmed M. Ghaithan & Yasser Alshammakhi & Awsan Mohammed & Khwaja Mateen Mazher, 2023. "Integrated Impact of Circular Economy, Industry 4.0, and Lean Manufacturing on Sustainability Performance of Manufacturing Firms," IJERPH, MDPI, vol. 20(6), pages 1-19, March.
    • Handle: RePEc:gam:jijerp:v:20:y:2023:i:6:p:5119-:d:1096959
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    References listed on IDEAS

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    Cited by:

    1. Yazeed Alsuhaibany, 2025. "Digital Innovation and Circular Economy: A Nexus for Sustainable Oil and Gas Sector Transformation in Saudi Arabia," Sustainability, MDPI, vol. 17(3), pages 1-18, February.
    2. Dounia Skalli & Abdelkabir Charkaoui & Anass Cherrafi & Jose Arturo Garza‐Reyes & Jiju Antony & Alireza Shokri, 2024. "Analyzing the integrated effect of circular economy, Lean Six Sigma, and Industry 4.0 on sustainable manufacturing performance from a practice‐based view perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 33(2), pages 1208-1226, February.
    3. Anastasia Vasileiou & Eleni Sfakianaki & Georgios Tsekouropoulos, 2024. "Exploring Sustainability and Efficiency Improvements in Healthcare: A Qualitative Study," Sustainability, MDPI, vol. 16(19), pages 1-34, September.
    4. Alejandro M. Martín-Gómez & Alejandro Agote-Garrido & Juan Ramón Lama-Ruiz, 2024. "A Framework for Sustainable Manufacturing: Integrating Industry 4.0 Technologies with Industry 5.0 Values," Sustainability, MDPI, vol. 16(4), pages 1-18, February.
    5. Sławomir Zapłata & Magdalena Muradin & Patryk Feliczek & Joanna Katarzyna Banach & Kacper Sieciński, 2024. "Organizational Resilience Opacity in the Prism of Circular Strategy—Metal Industry Manufacturing Practice," Sustainability, MDPI, vol. 16(23), pages 1-20, November.
    6. Mohammed Ibrahim Buhaya & Abdelmoneim Bahyeldin Mohamed Metwally, 2024. "The Interplay Between Digital Technologies and Sustainable Performance: Does Lean Manufacturing Matter?," Sustainability, MDPI, vol. 16(22), pages 1-23, November.

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