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Technological Revolution and Circular Economy Practices: A Mechanism of Green Economy

Author

Listed:
  • Syed Abdul Rehman Khan

    (School of Management and Engineering, Xuzhou University of Technology, Xuzhou 221006, China)

  • Muhammad Umar

    (Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Kuala Terengganu 21030, Malaysia)

  • Alam Asadov

    (College of Business Administration, Prince Sultan University, Rafha Street, Riyadh 11586, Saudi Arabia)

  • Muhammad Tanveer

    (Prince Sultan University, Rafha Street, Riyadh 11586, Saudi Arabia)

  • Zhang Yu

    (School of Economics and Management, Chang’an University, Xi’an 710064, China
    Department of Business Administration, ILMA University, Karachi 75190, Pakistan)

Abstract

Rising environmental concerns, Industry 4.0 technologies, and circular economy (CE) practices are the prevailing business considerations of the current time, and they are transforming business models. Keeping in view the importance of these considerations, this work looks into the role of Industry 4.0 technologies in adoption of CE practices and the impact of CE practices on firms’ performance. The current study collected data from 213 automotive firms located in Eastern European countries including Poland, Romania, and Ukraine. Using Covariance-Based Structural Equation Modelling (CB-SEM), the current study provides some important findings. Firstly, Industry 4.0 technologies significantly enhance circular economy practices. Secondly, circular economy practices are found to be positively related with environmental and operational performance. Lastly, higher economic and operational performance boost organizational performance. Hence, the current study provides deeper understanding regarding performance implications of Industry 4.0 technologies and offers insights about ways of promoting sustainable performance in the current age of digitization.

Suggested Citation

  • Syed Abdul Rehman Khan & Muhammad Umar & Alam Asadov & Muhammad Tanveer & Zhang Yu, 2022. "Technological Revolution and Circular Economy Practices: A Mechanism of Green Economy," Sustainability, MDPI, vol. 14(8), pages 1-14, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:8:p:4524-:d:790991
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    References listed on IDEAS

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    4. Khan, Syed Abdul Rehman & Zia-Ul-Haq, Hafiz Muhammad & Ponce, Pablo & Janjua, Laeeq, 2023. "Re-investigating the impact of non-renewable and renewable energy on environmental quality: A roadmap towards sustainable development," Resources Policy, Elsevier, vol. 81(C).
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    6. Ioannidis, Filippos & Kosmidou, Kyriaki & Papanastasiou, Dimitra, 2023. "Public awareness of renewable energy sources and Circular Economy in Greece," Renewable Energy, Elsevier, vol. 206(C), pages 1086-1096.
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    8. Abdullah Kaid Al‐Swidi & Joseph F. Hair & Mohammed A. Al‐Hakimi, 2023. "Sustainable development‐oriented regulatory and competitive pressures to shift toward a circular economy: The role of environmental orientation and Industry 4.0 technologies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4782-4797, November.
    9. Tatiana N. Litvinova & Nodira B. Abdusalomova & Tatiana A. Dugina & Igor V. Denisov, 2024. "Change Management Based on Smart Technologies for Sustainable Business Development," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 25(1), pages 17-30, September.
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    11. Konstantinos Tsimnadis & Grigorios L. Kyriakopoulos & Garyfallos Arabatzis & Stefanos Leontopoulos & Efthimios Zervas, 2023. "An Innovative and Alternative Waste Collection Recycling Program Based on Source Separation of Municipal Solid Wastes (MSW) and Operating with Mobile Green Points (MGPs)," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
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