Abstract
The degradation of the environment is associated with economic activity, particularly with the linear way in which the economy does not make efficient use of resources. However, the circular economy is opposed to this linear paradigm, since it makes the most of the resources in trying to achieve zero waste. In this context, this study investigates the relationship between industry 4.0 technologies, COVID-19 outbreak, environmental regulation policies and circular economy practices. A questionnaire is designed to collect information from 214 big and private manufacturing firms in Ecuador, and subsequently, through CB-SEM, the information is processed, and the study paths are validated. The results suggest that industry 4.0 technologies and environmental regulation policies are driving circular economy practices during the pandemic. The study finds no evidence favoring COVID-19 being a determining factor in the adoption of the circular economy. The results provide a policy framework for the adoption of a circular economy.
Highlights
The results shown in the previous section show the direct effects of the explanatory variables of the study on circular economy (CE), which were described in Hypotheses 1–3
I4.0 has a direct effect on the adoption of CE in manufacturing industries, from which it should be understood that those firms that have modern information systems, with state-of-the-art technology in their production processes, intelligent processing of data, among others, are easier to adopt and apply CE
The adoption of CE has taken on great importance in the current pandemic that the world is going through since it is necessary to make the most of productive resources to deplete the supply chain of the manufacturing sector
Summary
The outbreak of COVID-19 has been the cause of the current economic crisis, stemming from the global supply chain’s decline [1]. In this regard, the pandemic has shown the worst deficiencies of firms and consumers and their vulnerability to risk situations [2]. Not everything has been discouraging, since it has become clear that environmental sustainability is the way to face a situation of risk and uncertainty, which the supply chain faces [3]; the economy faces an economic system of linear production, in which a real challenge to achieve environmental sustainability is presented, since resources are not used efficiently, and too much waste is generated—that is, it is a model that is based on taking that makes waste [4]. The decision to adopt cleaner production systems in which the CE is accentuated has taken on a greater force since
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