Creating a sustainable future through Industry 4.0 technologies: Untying the role of circular economy practices and supply chain visibility

Abstract

AbstractThe intersection of Industry 4.0 technology (I4.0‐Tech) with sustainability (SUS) remains largely unexplored, particularly due to its interactions with supply chain visibility (SCV) and circular economy practices (CEP). To fill this gap, our study empirically examines I4.0‐Tech's impact on SUS through SCV and CEP. We utilized structural equation modeling to test the hypothesized relationships using data from a survey of 344 medium and large Chinese firms. The empirical findings support the indirect role of I4.0 through SCV, and CEP. I4.0‐Tech enables real‐time material and product tracking for SCV. Optimizing material utilization, fostering closed‐loop supply chains, and allowing circular product design enhance CEP. Furthermore, our findings show a positive relationship between SCV, CEP, and SUS. This highlights the need for robust supply chain capabilities in enabling I4.0‐Tech to drive SUS. This paradigm emphasizes recalibrating approaches to SCV and CEP‐focused frameworks to easily include and exploit I4.0‐Tech. This study contributes to the literature and gives actionable insights for managers and policymakers wanting to synergize I4.0‐Tech, SCV, and CEP in industrial processes to promote sustainability goals and a sustainable future.