Industry 4.0 technologies and circular economy synergies: Enhancing corporate sustainability through sustainable supply chain integration and flexibility

Abstract

Recently, an increasing number of firms have embraced sustainable supply chain practices to reduce negative environmental and societal impacts in their supply networks. The adoption of a circular economy framework has become popular among many businesses as a strategic approach to achieving sustainable development goals. This involves turning used products into new items with different uses, aligning with wider corporate sustainability aims. The advent of Industry 4.0 initiatives holds the potential to exert a transformative influence across entire business systems, redefining the manner in which products are conceived, manufactured, distributed, and disposed of. The present study undertakes an inquiry into the interconnections linking Industry 4.0 capabilities, green supply chain integration (GSCI), flexibility in sustainable supply chain management (SSCF), and the utilization of circular economy capabilities (CEC) within the context of corporate sustainability performance (CSP). Based on a comprehensive survey of 256 manufacturing organizations, the study highlights the importance of integrating dynamic capabilities like GSCI and SSCF within I4.0 and CE strategies. The collected data reveal the transformative influence of GSCI, SSCF, and I4.0 on enhancing CEC and promoting corporate sustainability. Given these insights, recognizing and harmonizing vital Industry 4.0 technologies with circular economy capabilities proves valuable for organizations aiming to enhance corporate sustainability through informed decisions.