Transforming Supply Chains: Powering Circular Economy with Analytics, Integration and Flexibility Using Dual Theory and Deep Learning with PLS-SEM-ANN Analysis

Abstract

The Sustainable Development Goals and circular economy are two critical aspects of the 2030 Agenda for Sustainable Development. They both seek to reduce the waste of natural resources and enhance society’s social, economic, and environmental goals. This study aims to identify, develop, test, and verify the significant antecedents that affect the adoption of supply chain analytics and its consequences for achieving the circular economy. We have divided the conceptual framework into two parts. In the first part, the relationship among data integration and scalability, organizational readiness, and policies and regulations as Technological–Organizational–Environmental factors as antecedents in adopting supply chain analytics. In the second part, the dynamic capabilities view grounded the relationship among supply chain analytics, supply chain integration, and sustainable supply chain flexibility effect directly and indirectly on the circular economy. Data have been collected using the survey method from 231 respondents from the manufacturing industry in Pakistan. Data have been analyzed using (i) partial least square structure equation modeling (ii) and artificial neural network approaches. The empirical findings proved that antecedents (data integrity and scalability, organizational readiness, and policy and regulation) and consequences (supply chain integration and sustainable supply chain flexibility) of supply chain analytics adoption would improve the circular economy performance. Additionally, artificial neural networks have supported these relationships. The adoption of supply chain analytics will enable organizations to supply chain integration. Additionally, organizations with more integration and analytics in their operations tend to have more flexibility and a circular economy. Moreover, organizations and society will obtain social, economic, and environmental benefits and reduce wastage and negative environmental impacts.