Analysing the role of Industry 4.0 technologies and circular economy practices in improving sustainable performance in Indian manufacturing organisations

Abstract

Abstract The focus of Industry 4.0 (I4) technologies is to address the issue of scarce resources and improve productivity by providing solutions to economise the use of limited resources and find other substitute raw materials. Circular economy (CE) is also identified as a solution to manage the increasing pressure of environmental regulations, price volatility in resources, and supply uncertainty. However, the relationship between I4 technologies, CE and sustainable performance (SP) is still unexplored and demands a more conceptual and empirical investigation on understanding how the I4 technologies favour the transition towards CE practices and what impact they have together on SP. Based on a survey of 238 manufacturing practitioners from India, the study investigates the mediating and moderating role of CE practices on the relationship between I4 technologies and SP. The findings reveal that developing an environment of CE is not a prerequisite for implementing I4 technologies. However, I4 technologies support developing efficient CE environment, which, leads to the achievement of sustainable organisational goals. Future research directions and implications for practitioners are provided.