Abstract
The intersection of Industry 4.0 technology (I4.0-Tech) with sustainability (SUS) remains largely unexplored, particularly due to its interactions with supply chain visibility (SCV) and circular economy practices (CEP). To fill this gap, our study empirically examines I4.0-Tech's impact on SUS through SCV and CEP. We utilized structural equation modeling to test the hypothesized relationships using data from a survey of 344 medium and large Chinese firms. The empirical findings support the indirect role of I4.0 through SCV, and CEP. I4.0-Tech enables real-time material and product tracking for SCV. Optimizing material utilization, fostering closed-loop supply chains, and allowing circular product design enhance CEP. Furthermore, our findings show a positive relationship between SCV, CEP, and SUS. This highlights the need for robust supply chain capabilities in enabling I4.0-Tech to drive SUS. This paradigm emphasizes recalibrating approaches to SCV and CEP-focused frameworks to easily include and exploit I4.0-Tech. This study contributes to the literature and gives actionable insights for managers and policymakers wanting to synergize I4.0-Tech, SCV, and CEP in industrial processes to promote sustainability goals and a sustainable future.
Original language | English |
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Pages (from-to) | 5753-5775 |
Number of pages | 23 |
Journal | Business Strategy and the Environment |
Volume | 33 |
Issue number | 6 |
Early online date | 25 Apr 2024 |
DOIs | |
Publication status | Published - Sept 2024 |
Keywords
- circular economy practices
- Industry 4.0
- supply chain visibility
- sustainability
- sustainable development
ASJC Scopus subject areas
- Business and International Management
- Geography, Planning and Development
- Strategy and Management
- Management, Monitoring, Policy and Law