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Enabling Industry 5.0-Driven Circular Economy Transformation: A Strategic Roadmap

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  • Chih-Hung Hsu

    (Institute of Logistics Engineering and Management, College of Transportation, FuJian University of Technology, Fuzhou 350118, China)

  • Ze-Hao Li

    (Institute of Logistics Engineering and Management, College of Transportation, FuJian University of Technology, Fuzhou 350118, China)

  • Hong-Ji Zhuo

    (Institute of Logistics Engineering and Management, College of Transportation, FuJian University of Technology, Fuzhou 350118, China)

  • Ting-Yi Zhang

    (Institute of Industrial Engineering, College of Management, FuJian University of Technology, Fuzhou 350118, China)

Abstract

Because Industry 4.0 is not a better solution to the problems of the circular economy development process, the European Union proposed Industry 5.0 as a supplement to Industry 4.0. However, presently, no relevant research exists on the promotion of a circular economy under Industry 5.0, and the limited understanding of this process is the fundamental obstacle for enterprises to pursue digitalization and sustainable operations. This study addresses this knowledge gap by developing a roadmap explaining the use of the drivers of Industry 5.0 to support and promote the transformation to a circular economy. This study first screens the literature and determines 11 drivers of Industry 5.0. Secondly, on this basis, a fuzzy explanatory structure model of these drivers promoting a circular economy is constructed. Finally, a strategic roadmap is constructed for Industry 5.0 to promote a circular economy. The results reveal that the 11 key factors driving the circular economy are complementary, among which the quantitative criteria and indicators are the most critical and are present at the bottom of the strategic map. Value chain integration and the transformation into a sustainable business model are the most complex drivers. The strategic roadmap can explain the effects of the various drivers on the transformation to a circular economy and the order required to promote this transformation. The resulting management mindset is expected to assist manufacturers, industrialists, academia, and governments in providing services, thus forming a strategic guideline driven by Industry 5.0 factors to promote the circular economy.

Suggested Citation

  • Chih-Hung Hsu & Ze-Hao Li & Hong-Ji Zhuo & Ting-Yi Zhang, 2024. "Enabling Industry 5.0-Driven Circular Economy Transformation: A Strategic Roadmap," Sustainability, MDPI, vol. 16(22), pages 1-25, November.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:22:p:9954-:d:1521288
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    References listed on IDEAS

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    1. Behl, Abhishek & Singh, Ramandeep & Pereira, Vijay & Laker, Benjamin, 2023. "Analysis of Industry 4.0 and circular economy enablers: A step towards resilient sustainable operations management," Technological Forecasting and Social Change, Elsevier, vol. 189(C).
    2. Steve Kennedy & Martina K. Linnenluecke, 2022. "Circular economy and resilience: A research agenda," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2754-2765, September.
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