Relationships between industry 4.0, sustainable manufacturing and circular economy: proposal of a research framework

• Published in: International journal of organizational analysis (2005) Vol. 30; no. 4; pp. 864 - 898
• Main Authors: Bag, Surajit, Pretorius, Jan Harm Christiaan
• Format: Journal Article
• Language: English
• Published: Bingley Emerald Publishing Limited 17-06-2022; Emerald Group Publishing Limited
• Subjects: Artificial intelligence; Big Data; Circular economy; Consumption; Cooperation; Cost control; Decision making; Demand curves; Economics; Industrial development; Industrial wastes; Industry 4.0; Internet of Things; Interoperability; Life sciences; Literature reviews; Local communities; Manufacturers; Manufacturing; Manufacturing industry; Modularity; Natural resources; Preventive maintenance; Productivity; Qualitative research; Skills; Supply chain management; Sustainability; Sustainable development; Sustainable production; Technology adoption; Literature review; Sustainable manufacturing; Industry 4.0; Circular economy; Resource-based view theory
• ISSN: 1934-8835; 1758-8561
• DOI: 10.1108/IJOA-04-2020-2120

Purpose
The digital revolution has brought many challenges and opportunities for the manufacturing firms. The impact of Industry 4.0 technology adoption on sustainable manufacturing and circular economy has been under-researched. This paper aims to review the latest articles in the area of Industry 4.0, sustainable manufacturing and circular economy and further developed a research framework showing key paths.
Design/methodology/approach
Qualitative research is performed in two stages. In the first stage, a review of the extant literature is performed to identify the barriers, drivers, challenges and opportunities. In the second stage, a research framework is proposed to integrate Industry 4.0 technology (big data analytics powered artificial intelligence) adoption, sustainable manufacturing and circular economy capabilities.
Findings
This research extends the knowledge base by providing a detailed review of Industry 4.0, sustainable manufacturing, and circular economy and proposes a research framework by integrating these three contemporary concepts in the context of supply chain management. Through an exploration of this integrative research framework, the authors propose a future research agenda and seven research propositions.
Research limitations/implications
It is important to understand the interplay between institutional pressures, tangible resources and human skills for Industry 4.0 technology (big data analytics powered artificial intelligence) adoption. Industry 4.0 technology (big data analytics powered artificial intelligence) adoption can positively influence sustainable manufacturing and circular economy capabilities. Managers must also put more attention to sustainable manufacturing to develop circular economic capabilities.
Social implications
Factory workers and the local communities generally suffer from various adverse effects resulting from the traditional manufacturing process. The quality of the environment is deteriorating to such an extent that people even staying miles away from the factory are also affected due to environmental pollution that is generated from factory operations. Hence, sustainable manufacturing is the only choice left to manufacturers that can help in the transition to a circular economy. The research framework can help firms to enhance circular economy capabilities.
Originality/value
This review paper contains the most updated work on Industry 4.0, sustainable manufacturing and circular economy. It also proposes a research framework to integrate these three concepts.