Circular supply chain practices, big data implementation and firm performance: Mediating role of digital technology

Abstract

AbstractThe business practices such as supply chains have been transformed significantly due to technological advancement and digitalization. It helps enhance organizational efficiency in consumption, production, and overall operation. Additionally, big data within the supply chain management process has considerably assisted businesses in gathering accurate product information, easily tracing a product, maintaining track of distribution cycles and delivering goods as quickly as possible. The research investigates the impact of the circular supply chain (CSC) and big data implementation on firm performance, specifically in the Pakistan Manufacturing Sector. Further, it has investigated digital technologies' mediating role in the firm's performance in the Pakistan manufacturing sector. The research was conducted using quantitative data from the questionnaire survey from 400 participants (i.e., firm managers) working in the Pakistan manufacturing sector. The data were analyzed using the structural equation modeling comprising confirmatory factor analysis and path analysis using SmartPLS. Findings show a negative and significant influence of CSC practices on firm performance in the manufacturing sector of Pakistan. On the contrary, big data implementation positively and significantly impacts the firms' performance. Further, the mediating role of digital technology over firm performance through CSC practices and big data implementation was also found to be positive and significant. The research has contributed to the present state of literature in different ways. First, the research presented the mediating role of digital technologies in the relationship between CSC and big data implementation and firm performance.