Impact of industry 4.0 technologies on sustainable supply chain performance: The mediating role of green supply chain management practices and circular economy

Abstract

During the COVID-19 pandemic, Industry 4.0 technologies and sustainable supply chain practices gained momentum in building a modern and sustainable supply chain. The pandemic and the Russia-Ukraine war presented challenges to emerging economies, emphasizing the need for advanced technologies to ensure continuity and improve performance. While previous studies have examined the direct impact of advanced technologies on performance, the integrated effects of these technologies and sustainable practices, as well as their mediating role between Industry 4.0 and sustainable supply chain performance, remain unexplored. To address this gap, a second-order hierarchical component model was developed and tested using partial least square-based structural equation modeling. Construct dimensions and measurement items were determined through literature review and expert input from Bangladesh's readymade garment industries. A survey collected data from experts and supply chain professionals in various readymade garment industries in Bangladesh. The findings indicate that the adoption of Industry 4.0 technologies significantly and positively impacts sustainability performance. Additionally, green supply chain management and circular economy practices mediate the influence of Industry 4.0 technologies, contributing to sustainable supply chain performance. This study stands out as one of the few attempts to examine the impact of Industry 4.0 technologies on sustainable supply chain performance, specifically in the context of Bangladeshi readymade garment industries with the application of green supply chain management and circular economy practices. The valuable insights from this study will guide industrial managers and regulatory authorities in implementing advanced technologies and aligning manufacturing practices with sustainable approaches, thus promoting environmental and socio-economic performance.