From circularity to sustainability: Leveraging Industry 4.0 for circular and supply chain resilience

Ongoing environmental issues are increasingly challenging the manufacturing sector because of its environmental footprint. These issues, including carbon emissions, intensive resource consumption, large-scale waste generation, and environmental pollution, have stimulated demand for environmentally responsible supply chain practices. The implementation of these practices can be realized through the application of advanced technology, such as Industry 4.0. This study examines the role of Industry 4.0 technologies towards sustainable supply chain performance and investigates the mediating role played by circular supply chain practices and visibility. Moreover, the moderating role of strategic alliances and resilient supply chains was also analyzed. Data were collected using time-lagged research from senior managers working in manufacturing companies in China. PLS-SEM was used to analyse 371 questionnaires. The findings suggest that Industry 4.0 enhances supply chain visibility and circular supply chain practices and improves sustainable supply chain performance. Further, results also show that supply chain resilience moderates the association between circular supply chain practices, supply chain visibility, and sustainable supply chain performance. However, the moderating role of strategic alliances was found to be insignificant. These findings reveal that manufacturing organizations can achieve sustainable supply chain performance by integrating Industry 4.0 into their operations. These findings contribute significantly to Industry 4.0 and the circular economy in academic, managerial, and policy debates, resulting in sustainable supply chains. Potentially, the findings serve to drive sustainable supply chains in developing countries to better manage the digital transition of the manufacturing industry.