Digitalization for circular economy and operational excellence practices: A paradox theory perspective on performance improvement in manufacturing firms
{"title":"Digitalization for circular economy and operational excellence practices: A paradox theory perspective on performance improvement in manufacturing firms","authors":"Anupama Prashar, Atanu Chaudhuri","doi":"10.1002/bse.4031","DOIUrl":null,"url":null,"abstract":"<p>The present study evaluates how the joint implementation of circular economy (CE) and operational excellence (OE) practices supported by the adoption of industry 4.0 technologies (Internet of Things and Big Data Analytics) influence manufacturing firms' operational performance and environmental sustainability. Drawing from the paradox theory, it also investigates the moderating role of managing paradoxical tensions arising from these implementations. To test the hypothesized relationships, survey data are collected from 147 Indian manufacturing firms implementing CE, OE practices, and internet of things (IoT) and big data analytics (BDA)-enabled digital systems. The data are analyzed using structural equation modeling and moderated mediation analysis. Results indicate a direct significant effect of adoption of IoT and BDA-enabled digital systems on operational performance and environmental sustainability, and partial mediation by CE and OE implementations, respectively. There is a strong moderation of managing paradoxical tensions on the impact of CE and OE implementations on performance. Additionally, the conditional indirect effect of CE implementations on the environmental sustainability outcomes of the IoT and BDA adoption increases with greater effort in managing paradoxical tensions. The study answers the call for empirical research on the organizational tensions that surface due to conflicting demands of initiatives related to operational efficiency and environmental sustainability.</p>","PeriodicalId":9518,"journal":{"name":"Business Strategy and The Environment","volume":"34 1","pages":"1154-1170"},"PeriodicalIF":12.5000,"publicationDate":"2024-11-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Business Strategy and The Environment","FirstCategoryId":"91","ListUrlMain":"https://onlinelibrary.wiley.com/doi/10.1002/bse.4031","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS","Score":null,"Total":0}
引用次数: 0
Abstract
The present study evaluates how the joint implementation of circular economy (CE) and operational excellence (OE) practices supported by the adoption of industry 4.0 technologies (Internet of Things and Big Data Analytics) influence manufacturing firms' operational performance and environmental sustainability. Drawing from the paradox theory, it also investigates the moderating role of managing paradoxical tensions arising from these implementations. To test the hypothesized relationships, survey data are collected from 147 Indian manufacturing firms implementing CE, OE practices, and internet of things (IoT) and big data analytics (BDA)-enabled digital systems. The data are analyzed using structural equation modeling and moderated mediation analysis. Results indicate a direct significant effect of adoption of IoT and BDA-enabled digital systems on operational performance and environmental sustainability, and partial mediation by CE and OE implementations, respectively. There is a strong moderation of managing paradoxical tensions on the impact of CE and OE implementations on performance. Additionally, the conditional indirect effect of CE implementations on the environmental sustainability outcomes of the IoT and BDA adoption increases with greater effort in managing paradoxical tensions. The study answers the call for empirical research on the organizational tensions that surface due to conflicting demands of initiatives related to operational efficiency and environmental sustainability.
期刊介绍:
Business Strategy and the Environment (BSE) is a leading academic journal focused on business strategies for improving the natural environment. It publishes peer-reviewed research on various topics such as systems and standards, environmental performance, disclosure, eco-innovation, corporate environmental management tools, organizations and management, supply chains, circular economy, governance, green finance, industry sectors, and responses to climate change and other contemporary environmental issues. The journal aims to provide original contributions that enhance the understanding of sustainability in business. Its target audience includes academics, practitioners, business managers, and consultants. However, BSE does not accept papers on corporate social responsibility (CSR), as this topic is covered by its sibling journal Corporate Social Responsibility and Environmental Management. The journal is indexed in several databases and collections such as ABI/INFORM Collection, Agricultural & Environmental Science Database, BIOBASE, Emerald Management Reviews, GeoArchive, Environment Index, GEOBASE, INSPEC, Technology Collection, and Web of Science.