Exploring the Interlinkages Between Industry 4.0, Circular Economy, and Sustainable Performance

Abstract

In recent years, the concepts of Industry 4.0 (I4.0), the circular economy (CE), and sustainability have garnered significant attention within both academic and practical spheres. Numerous studies have been conducted to investigate these concepts individually, with a growing body of research also examining the bivariate relationships among these variables. Though a lot of studies have emerged examining the bivariate relationships, studies focusing on investigating the interlinkages between these three concepts are still very limited. Therefore, this chapter aims to examine the interlinkages between I4.0, CE, and Sustainable Performance (SP). This chapter also investigates the drivers in implementing I4.0 technologies, CE, and sustainability practices. Firm's challenges in implementing I4.0 and CE to achieve SP objectives are also discussed in this chapter. The chapter presents theoretical frameworks for understanding complex interlinkages between I4.0, CE, and SP. This chapter will be useful for both academia and industry in understanding the nexus between I4.0, CE, and SP.