Integrating digital technologies and stakeholder collaboration for circular supply chain transformation: A study of industrial sustainability

This research paper examines how Digital Technology Adoption (DTA) and Stakeholder Collaboration (SC) affect Sustainable Supply Chain Performance (SSCP) through Circular Supply Chain Practices (CSCP) and moderated by Organizational Readiness for Sustainability (ORS). Its analysis is based on a combined theoretical framework, which relies on the Resource-Based View (RBV) and the Dynamic Capabilities (DC) to explain the mutual contribution to the creation of circular and sustainable outcomes with digital resources and organizational capabilities. The data was gathered using purposive, non-probability sampling model; hence, involving 309 managerial workers working in different industries in Riyadh, Saudi Arabia. The evaluation of the empirical model was done by the means of Partial Least Squares Structural Equation Modeling (PLS-SEM) Results indicates that DTA has a significant positive influence on CSCP and SSCP, and CSP has a positive and significant impact on sustainability performance, thus supporting the mediating role of CSCP in a relationship between digital adoption and sustainable results. ORS has a positive impact on the cyclical practices and sustainability, boosts the relationship between DTA and CSCP, but reduces the impact of SC on CSCP, indicating a substitution effect that internal readiness replaces external cooperation. The findings have practical implications that include suggesting firms to increase digital initiatives with internal preparation steps, management support, and capability building, which can make it easier to find a more efficient path to a circular transformation.