Industry 4.0 and circular economy practices: A new era business strategies for environmental sustainability

Amid rising environmental concerns, Industry 4.0 and blockchain technology (BCT) are transforming circular economy (CE) practices and prevailing business models. Recognize the same; this study examines the role of blockchain technology in circular CE practices and their impact on eco‐environmental p...

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Bibliographic Details
Published in:Business strategy and the environment Vol. 30; no. 8; pp. 4001 - 4014
Main Authors: Khan, Syed Abdul Rehman, Razzaq, Asif, Yu, Zhang, Miller, Sharon
Format: Journal Article
Language:English
Published: 01.12.2021
Subjects:
blockchain technology
circular economy practices
Industry 4.0
organizational performance
structural equation modeling
ISSN:0964-4733, 1099-0836
Online Access:Get full text
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Summary:Amid rising environmental concerns, Industry 4.0 and blockchain technology (BCT) are transforming circular economy (CE) practices and prevailing business models. Recognize the same; this study examines the role of blockchain technology in circular CE practices and their impact on eco‐environmental performance, which influences organizational performance. The study collects data from 404 enterprises located in Chinese and Pakistani territories, involved in cross‐border supply chain operations. Both countries' sample has great relevance due to the China Pakistan Economic Corridor (CPEC), which possesses several positive fallouts in terms of technology spillovers across firms. Using the partial least squares structural equation modeling (PLS‐SEM) modeling framework, this study provides three key findings. First, BCT significantly improves the circular economy practices (circular procurement, circular design, recycling, and remanufacturing). Second, CE practices help improve firms' environmental performance and stimulate their financial performance. Third, higher eco‐environmental performance significantly boosts organizational performance. This study sets out the foundations for participating countries/firms that simultaneously achieve financial and sustainable goals by integrating blockchain technology in circular economy practices.
Bibliography:Funding information
Beijing Key Laboratory of Urban Spatial Information Engineering, Grant/Award Number: 20210218
ISSN:0964-4733
1099-0836
DOI:10.1002/bse.2853