Industry 4.0 technologies moderately spurred micro-level circular economy considering cleaner production, not promoting sustainable performance

Abstract

The firms from textile sector are increasingly integrating industry 4.0 technologies alongside micro-level circular economy, considering cleaner production to enhance sustainable performance. The objective of this study is to assess the extent to which industry 4.0 technologies fosters circular economy practices at the micro level, considering cleaner production, thereby bolstering sustainable performance within large textile industry located in Brazil. A systematic literature review was developed with the aim of evaluating the relationship between Industry 4.0 Technologies, Circular Economy, Cleaner Production and Performance. To this end, the current state of the art on this subject was identified, however, no exploratory studies were identified. Survey method was employed, complemented by expert analysis to refine the research instrument. Structural equation modeling was utilized for hypothesis testing, alongside Pearson correlation analysis to examine relationships between variables. Findings indicate that the adoption of industry 4.0 technologies within large textile industry located in Brazil has moderately spurred micro-level circular economy initiatives, because a lack of established mechanisms for valorizing residue and restoring the value of products and packaging after consumption. In addition, sustainable performance was not validated because the focus was only on environmental and economic performance aimed at supplying the foreign market and moderately influenced social performance. Another result showed that the cloud computing, cybersecurity systems, and additive manufacturing did not stimulate micro-level circular economy actions and performance. On the other hand, the industry 4.0 technologies that boosted micro-level circular economy and performance were cyber physical system, autonomous robots, augmented reality, big data analytics, simulation, artificial intelligence and the internet of things.