Abstract:
This study explores how the influence of Industry 4.0 technologies affects circular economy (CE) adoption. Drawing on the Resource-Based View (RBV) and Dynamic Capabilities Theory (DCT), the study develops a conceptual model incorporating smart manufacturing technologies, data processing capabilities, and IT infrastructure as drivers of digital transformation. We contend that Industry 4.0 technologies such as Smart Manufacturing, and Data Processing technologies, increase Supply Chain integration (SCI), which will in turn enhance Supply chain collaboration, and visibility leading to a Circular Economy (CE). We also infer that the effect of Industry 4.0 technologies on SCI is moderated by IT Advancement in a way that high levels of advancement will make these relationships more pronounced. Using data collected from 343 professionals across diverse industries in Pakistan, the model is tested through Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal that smart manufacturing and data processing technologies significantly enhance SCI, which in turn positively affects collaboration, visibility, and circularity. IT advancement strengthens the relationship between digital technologies and SCI. The study contributes to the theoretical understanding of digital transformation and sustainability and offers practical guidance for firms aiming to build resilient and environmentally responsible supply chains.
