Abstract
Circular economy and Industry 4.0 are two of the most hotly debated topics in recent decades. They gradually attracted the attention of academics, practitioners, and policymakers from around the globe. The current research looks at the impact of Industry 4.0 on circular economy practices and blockchain technology in order to boost firm performance. The closed questionnaire was used to collect cross-sectional data of 330 respondents, and the partial least squares structural equation modeling (PLS-SEM) modeling framework was used to demonstrate the findings of the study. The results show that blockchain technology improves circular economy practices significantly in terms of green manufacturing (GM), recycling and remanufacturing (RR), and green design (GD) in India. In addition, Industry 4.0 has the potential to improve business operations as well as financial performance and environmental performance significantly. As a result, the current research work offers recommendations for businesses to achieve long-term goals by incorporating Industry 4.0 into manufacturing systems.
Similar content being viewed by others
Data availability
The data can be available on request.
References
Abbas Q, Hanif I, Taghizadeh-Hesary F, Iqbal W, Iqbal N, Abbas Q, Hanif I, Taghizadeh-Hesary F, Iqbal W, Khan DG (2021) Improving the energy and environmental efficiency for energy poverty reduction. Econ. Law, Institutions Asia Pacific 231–248. https://doi.org/10.1007/978-981-16-1107-0_11
Ahmad M, Wu Y (2022) Combined role of green productivity growth, economic globalization, and eco-innovation in achieving ecological sustainability for OECD economies. J Environ Manag 302:113980. https://doi.org/10.1016/J.JENVMAN.2021.113980
Alkhuzaim L, Zhu Q, Sarkis J (2021) Evaluating emergy analysis at the nexus of circular economy and sustainable supply chain management. Sustain Prod Consum 25:413–424. https://doi.org/10.1016/j.spc.2020.11.022
Al-Saqaf W, Seidler N (2017) Blockchain technology for social impact: opportunities and challenges ahead. J Cyber Policy 2:338–354. https://doi.org/10.1080/23738871.2017.1400084
Bag S, Pretorius JHC, Gupta S, Dwivedi YK (2021) Role of institutional pressures and resources in the adoption of big data analytics powered artificial intelligence, sustainable manufacturing practices and circular economy capabilities. Technol Forecast Soc Change 163:120420. https://doi.org/10.1016/j.techfore.2020.120420
Bayramova A, Edwards DJ, Roberts C (2021) The role of blockchain technology in augmenting supply chain resilience to cybercrime. Buildings 11. https://doi.org/10.3390/buildings11070283
Beck R, Avital M, Rossi M, Thatcher JB (2017) Blockchain technology in business and information systems research. Bus Inf Syst Eng 59:381–384. https://doi.org/10.1007/s12599-017-0505-1
Belhadi A, Kamble SS, Chiappetta Jabbour CJ, Mani V, Rehman Khan SA, Touriki FE (2021) A self-assessment tool for evaluating the integration of circular economy and industry 4.0 principles in closed-loop supply chains. Int J Prod Econ 108372. https://doi.org/10.1016/j.ijpe.2021.108372
Bera S, Sahoo S, Pal J, Dhara D (2020) Effect of copolymer chain length and additives on the catalytic efficiency of thermo-sensitive block copolymer stabilized gold nanoparticles. Colloids Surfaces A Physicochem Eng Asp 603:125122. https://doi.org/10.1016/j.colsurfa.2020.125122
Berlin MA, Muthusundari S, Anita CS, Rajalakshmi D, Rajkumar M, Dheekshitha R (2020) A HMAC algorithm based secure online transaction system using block chain technology. Mater Today Proc. https://doi.org/10.1016/j.matpr.2020.10.065
Bhattarai N, Kumar Jha R (2019) Rooftop farming: an alternative to conventional farming for urban sustainability. Malaysian J Sustain Agric 3:39–43. https://doi.org/10.26480/mjsa.01.2019.39.43
Cahill D, Baur DG, Liu ZF, Yang JW (2020) I am a blockchain too: how does the market respond to companies’ interest in blockchain? J Bank Financ 113:105740. https://doi.org/10.1016/j.jbankfin.2020.105740
Centobelli P, Cerchione R, Esposito E, Oropallo E (2021) Surfing blockchain wave, or drowning? Shaping the future of distributed ledgers and decentralized technologies. Technol Forecast Soc Change 165:120463. https://doi.org/10.1016/j.techfore.2020.120463
Cepeda Carrión G, Henseler J, Ringle CM, Roldán JL (2016) Prediction-oriented modeling in business research by means of PLS path modeling: introduction to a JBR special section. J Bus Res 69:4545–4551. https://doi.org/10.1016/J.JBUSRES.2016.03.048
Cerný M, Gogola M, Kubalák S, Ondruš J (2021) Blockchain technology as a new driver in supply chain. Transp Res Procedia 55:299–306. https://doi.org/10.1016/j.trpro.2021.06.034
Chen X, Xiao B, Xu Q, He C, Lin J (2021) Block-chain based federated learning for knowledge capital. Procedia Comput Sci 187:426–431. https://doi.org/10.1016/j.procs.2021.04.080
Chien FS, Kamran HW, Albashar G, Iqbal W (2021) Dynamic planning, conversion, and management strategy of different renewable energy sources: a sustainable solution for severe energy crises in emerging economies. Int J Hydrog Energy. https://doi.org/10.1016/j.ijhydene.2020.12.004
Cohen S (1988) Perceived stress in a probability sample of the United States. - PsycNET. Newbury Park. CA Sage 31–67
Crossan MM, Apaydin M (2018) A multi-dimensional framework of organizational innovation: a systematic review of the literature. J Manag Stud 47:1154–1191. https://doi.org/10.1111/J.1467-6486.2009.00880.X
Dalenogare LS, Benitez GB, Ayala NF, Frank AG (2018) The expected contribution of Industry 4.0 technologies for industrial performance. Int J Prod Econ 204:383–394. https://doi.org/10.1016/j.ijpe.2018.08.019
Eluubek kyzy I, Song H, Vajdi A, Wang Y, Zhou J (2021) Blockchain for consortium: A practical paradigm in agricultural supply chain system. Expert Syst Appl 184:115425. https://doi.org/10.1016/j.eswa.2021.115425
Fatima N, Li Y, Ahmad M, Jabeen G, Li X (2021) Factors influencing renewable energy generation development: a way to environmental sustainability. Environ Sci Pollut Res 28:51714–51732. https://doi.org/10.1007/s11356-021-14256-z
Fornell C, Larcker DF (1981) Structural equation models with unobservable variables and measurement error: algebra and statistics. J Mark Res 18:382. https://doi.org/10.2307/3150980
Friedman N, Ormiston J (2022) Blockchain as a sustainability-oriented innovation?: opportunities for and resistance to blockchain technology as a driver of sustainability in global food supply chains. Technol Forecast Soc Change 175:121403. https://doi.org/10.1016/j.techfore.2021.121403
Gao W, Su C (2020) Analysis on block chain financial transaction under artificial neural network of deep learning. J Comput Appl Math 380:112991. https://doi.org/10.1016/j.cam.2020.112991
Gao X, Wang S, Ahmad F, Chandio AA, Ahmad M, Xue D (2021) The nexus between misallocation of land resources and green technological innovation: a novel investigation of Chinese cities. Clean Techn Environ Policy 23:2101–2115. https://doi.org/10.1007/s10098-021-02107-x
Gefen D, Straub D, Boudreau M-C, Gefen D, Straub D (2000) Structural equation modeling and regression: guidelines for research practice. Commun Assoc Inf Syst 4:7. https://doi.org/10.17705/1CAIS.00407
Gligor DM, Davis-Sramek B, Tan A, Vitale A, Russo I, Golgeci I, Wan X (2021) Utilizing blockchain technology for supply chain transparency: a resource orchestration perspective. J Bus Logist:1–20. https://doi.org/10.1111/jbl.12287
Goodell JW, Kumar S, Lim WM, Pattnaik D (2021) Artificial intelligence and machine learning in finance: identifying foundations, themes, and research clusters from bibliometric analysis. J Behav Exp Financ 32:100577. https://doi.org/10.1016/j.jbef.2021.100577
Goseki R, Miyao S, Uchida S, Yokoyama H, Ito K, Ishizone T (2020) Surface characterization of amphiphilic block copolymers possessing polyisoprene and poly[tri(ethylene glycol) methacrylate] segments and the effect of side chain ω-function on surface energy. Polymer (Guildf) 190:122257. https://doi.org/10.1016/j.polymer.2020.122257
Gupta H, Kumar A, Wasan P (2021) Industry 4.0, cleaner production and circular economy: an integrative framework for evaluating ethical and sustainable business performance of manufacturing organizations. J Clean Prod 295:126253. https://doi.org/10.1016/j.jclepro.2021.126253
Hargroves K‘C’, Conley D, Stantic B (2021) The potential for blockchain and artificial intelligence to enhance the transport sector. J Civ Eng Archit 15:146–155. https://doi.org/10.17265/1934-7359/2021.03.003
Henseler J, Ringle CM, Sinkovics RR (2009) The use of partial least squares path modeling in international marketing. Adv Int Mark 20:277–319. https://doi.org/10.1108/S1474-7979(2009)0000020014
Huang H, Chau KY, Iqbal W, Fatima A (2021) Assessing the role of financing in sustainable business environment. Environ Sci Pollut Res:1–18. https://doi.org/10.1007/S11356-021-16118-0/TABLES/10
Huynh TLD, Hille E, Nasir MA (2020) Diversification in the age of the 4th industrial revolution: the role of artificial intelligence, green bonds and cryptocurrencies. Technol Forecast Soc Change 159. https://doi.org/10.1016/j.techfore.2020.120188
Iqbal W, Tang YM, Chau KY, Irfan M, Mohsin M (2021a) Nexus between air pollution and NCOV-2019 in China: application of negative binomial regression analysis. Process Saf Environ Prot 150:557–565. https://doi.org/10.1016/j.psep.2021.04.039
Iqbal W, Tang YM, Lijun M, Chau KY, Xuan W, Fatima A (2021b) Energy policy paradox on environmental performance: the moderating role of renewable energy patents. J Environ Manag 297:113230. https://doi.org/10.1016/j.jenvman.2021.113230
Irfan M, Ahmad M (2021) Relating consumers’ information and willingness to buy electric vehicles: does personality matter? Transp Res Part D Transp Environ 100:103049. https://doi.org/10.1016/j.trd.2021.103049
Jabeen G, Yan Q, Ahmad M, Fatima N, Qamar S (2019) Consumers’ intention-based influence factors of renewable power generation technology utilization: a structural equation modeling approach. J Clean Prod 237:117737. https://doi.org/10.1016/j.jclepro.2019.117737
Jabeen G, Yan Q, Ahmad M, Fatima N, Jabeen M, Li H, Qamar S (2020) Household-based critical influence factors of biogas generation technology utilization: a case of Punjab province of Pakistan. Renew Energy 154:650–660. https://doi.org/10.1016/j.renene.2020.03.049
Jabeen G, Ahmad M, Zhang Q (2021a) Perceived critical factors affecting consumers’ intention to purchase renewable generation technologies: rural-urban heterogeneity. Energy 218:119494. https://doi.org/10.1016/j.energy.2020.119494
Jabeen G, Ahmad M, Zhang Q (2021b) Factors influencing consumers’ willingness to buy green energy technologies in a green perceived value framework. 16:669–685. https://doi.org/10.1080/15567249.2021.1952494
Kazancoglu Y, Kazancoglu I, Sagnak M (2018) A new holistic conceptual framework for green supply chain management performance assessment based on circular economy. J Clean Prod 195:1282–1299. https://doi.org/10.1016/J.JCLEPRO.2018.06.015
Khan SAR, Razzaq A, Yu Z, Miller S (2021) Industry 4.0 and circular economy practices: a new era business strategies for environmental sustainability. Bus Strateg Environ 30:4001–4014. https://doi.org/10.1002/BSE.2853
Khanfar AAA, Iranmanesh M, Ghobakhloo M, Senali MG, Fathi M (2021) Applications of blockchain technology in sustainable manufacturing and supply chain management: a systematic review. Sustain. 13. https://doi.org/10.3390/su13147870
Khokhar M, Hou Y, Rafique MA, Iqbal W (2020) Evaluating the social sustainability criteria of supply chain management in manufacturing industries: a role of BWM in MCDM Ocena kryteriów zrównoważoności społecznej w zarządzaniu łańcuchem dostaw w przemyśle wytwórczym: rola BWM w MCDM
Khoso RA, Ali M, Iqbal W, Jamali MA (2021) Impact of transformational leadership style on employee’ job commitment and job satisfaction poverty reduction for inclusive sustainable growth in developing Asia view project energy poverty in SME sector view project impact of transformational leadership style on employee’ job commitment and job satisfaction. J Bus Econ 13:126–147. https://doi.org/10.5311/JBE.2021.26.6
Kopyto M, Lechler S, von der Gracht HA, Hartmann E (2020) Potentials of blockchain technology in supply chain management: long-term judgments of an international expert panel. Technol Forecast Soc Change 161:120330. https://doi.org/10.1016/j.techfore.2020.120330
Kouhizadeh M, Sarkis J, Zhu Q (2019) At the nexus of blockchain technology, the circular economy, and product deletion. Appl Sci 9. https://doi.org/10.3390/app9081712
Kouhizadeh M, Saberi S, Sarkis J (2021) Blockchain technology and the sustainable supply chain: theoretically exploring adoption barriers. Int J Prod Econ 231:107831. https://doi.org/10.1016/j.ijpe.2020.107831
Kshetri N (2018) 1 Blockchain’s roles in meeting key supply chain management objectives. Int J Inf Manag 39:80–89. https://doi.org/10.1016/j.ijinfomgt.2017.12.005
Kumar S, Raut RD, Nayal K, Kraus S, Yadav VS, Narkhede BE (2021) To identify industry 4.0 and circular economy adoption barriers in the agriculture supply chain by using ISM-ANP. J Clean Prod 293:126023. https://doi.org/10.1016/j.jclepro.2021.126023
Latan H, Chiappetta Jabbour CJ, de Sousa L, Jabbour AB, Wamba SF, Shahbaz M (2018) Effects of environmental strategy, environmental uncertainty and top management’s commitment on corporate environmental performance: the role of environmental management accounting. J Clean Prod 180:297–306. https://doi.org/10.1016/j.jclepro.2018.01.106
Latif Y, Shunqi G, Bashir S, Iqbal W, Ali S, Ramzan M (2021) COVID-19 and stock exchange return variation: empirical evidences from econometric estimation. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-14792-8
Lemieux VL, Mashatan A, Safavi-Naini R, Clark J (2021) A cross-pollination of ideas about distributed ledger technological innovation through a multidisciplinary and multisectoral lens: insights from the blockchain technology symposium’21. Technol Innov Manag Rev 11:58–66. https://doi.org/10.22215/timreview/1445
Leng K, Bi Y, Jing L, Fu H-C, Van Nieuwenhuyse I (2018) Research on agricultural supply chain system with double chain architecture based on blockchain technology. Futur Gener Comput Syst 86:641–649. https://doi.org/10.1016/j.future.2018.04.061
Liu H, Tang YM, Iqbal W, Raza H (2021a) Assessing the role of energy finance, green policies, and investment towards green economic recovery. Environ Sci Pollut Res 1:1–14. https://doi.org/10.1007/S11356-021-17160-8/TABLES/9
Liu Z, Tang YM, Chau KY, Chien F, Iqbal W, Sadiq M (2021b) Incorporating strategic petroleum reserve and welfare losses: a way forward for the policy development of crude oil resources in South Asia. Res Policy 74:102309. https://doi.org/10.1016/j.resourpol.2021.102309
Madueke CO, Shrestha DP, Nyktas P (2020) Integrated land cover and terrain analysis for sustainable land use planning at watershed scale: a case study of Ban Dan Na Kham Watershed of Northern Thailand. Malaysian J Sustain Agric 5:34–42. https://doi.org/10.26480/MJSA.01.2021.34.42
Masiak C, Block JH, Masiak T, Neuenkirch M, Pielen KN (2020) Initial coin offerings (ICOs): market cycles and relationship with bitcoin and ether. Small Bus Econ 55:1113–1130. https://doi.org/10.1007/s11187-019-00176-3
Meidute-Kavaliauskiene I, Yıldız B, Çiğdem Ş, Činčikaitė R (2021) An integrated impact of blockchain on supply. Logistics 5:33
Min H (2019) Blockchain technology for enhancing supply chain resilience. Bus Horiz 62:35–45. https://doi.org/10.1016/j.bushor.2018.08.012
Mori P, Prinz W, Ricci L, Weippl E (2021) Editorial for Special Issue on Block chain technology and its applications. Pervasive Mob Comput 71:101351. https://doi.org/10.1016/j.pmcj.2021.101351
Mubarik M, Raja Mohd Rasi RZ, Mubarak MF, Ashraf R (2021) Impact of blockchain technology on green supply chain practices: evidence from emerging economy. Manag Environ Qual An Int J 32:1023–1039. https://doi.org/10.1108/MEQ-11-2020-0277
Nousheen A, Yousuf Zai SA, Waseem M, Khan SA (2020) Education for sustainable development (ESD): effects of sustainability education on pre-service teachers’ attitude towards sustainable development (SD). J Clean Prod 250:119537. https://doi.org/10.1016/J.JCLEPRO.2019.119537
Pal K, Yasar A-U-H (2020) Internet of Things and blockchain technology in apparel manufacturing supply chain data management. Procedia Comput Sci 170:450–457. https://doi.org/10.1016/j.procs.2020.03.088
Park G, Shin SR, Choy M (2020) Early mover (dis)advantages and knowledge spillover effects on blockchain startups’ funding and innovation performance. J Bus Res 109:64–75. https://doi.org/10.1016/j.jbusres.2019.11.068
Paul T, Mondal S, Islam N, Rakshit S (2021) The impact of blockchain technology on the tea supply chain and its sustainable performance. Technol Forecast Soc Change 173:121163. https://doi.org/10.1016/j.techfore.2021.121163
Rehman Khan SA, Yu Z, Sarwat S, Godil DI, Amin S, Shujaat S (2021) The role of block chain technology in circular economy practices to improve organisational performance. Int J Log Res Appl. https://doi.org/10.1080/13675567.2021.1872512
Roy M, Roy A (2019) Nexus of Internet of Things (IoT) and Big Data: Roadmap for Smart Management Systems (SMgS). IEEE Eng Manag Rev 47:53–65. https://doi.org/10.1109/EMR.2019.2915961
Sakthivadivel M, Nirmala A, Sakthivadivel J, Mukhilan RR, Tennyson S (2021) Physicochemical and biological parameters of water at industrial sites of metropolitan city of Chennai, Tamil Nadu. India Water Conserv Manag 4:90–98. https://doi.org/10.26480/WCM.02.2020.90.98
Schroeder P, Anggraeni K, Weber U (2019) The relevance of circular economy practices to the sustainable development goals. J Ind Ecol 23:77–95. https://doi.org/10.1111/jiec.12732
Sezen B, Çankaya SY (2013) Effects of green manufacturing and eco-innovation on sustainability performance. Procedia Soc Behav Sci 99:154–163. https://doi.org/10.1016/J.SBSPRO.2013.10.481
Singh C, Chauhan D, Deshmukh SA, Vishnu SS, Walia R (2021) Medi-Block record: Secure data sharing using block chain technology. Informatics Med Unlocked 24:100624. https://doi.org/10.1016/j.imu.2021.100624
Truong D, Pan JY, Buaphiban T (2020) Low cost carriers in Southeast Asia: how does ticket price change the way passengers make their airline selection? J Air Transp Manag 86:101836. https://doi.org/10.1016/j.jairtraman.2020.101836
Upadhyay A, Mukhuty S, Kumar V, Kazancoglu Y (2021) Blockchain technology and the circular economy: implications for sustainability and social responsibility. J Clean Prod 293:126130. https://doi.org/10.1016/j.jclepro.2021.126130
Weaver A (2021) Tourism, big data, and a crisis of analysis. Ann Tour Res 88:103158. https://doi.org/10.1016/j.annals.2021.103158
Wu B, Liang H, Chan S (2021) Political connections, industry entry choice and performance volatility: evidence from China. 58:290–299. https://doi.org/10.1080/1540496X.2021.1904878
Xing G, Duan Z, Yan W, Baykal-Gürsoy M (2021) Evaluation of “innovation chain + supply chain” fusion driven by blockchain technology under typical scenario. Int J Prod Econ 242:108284. https://doi.org/10.1016/j.ijpe.2021.108284
Yang A, Li Y, Liu C, Li J, Zhang Y, Wang J (2019) Research on logistics supply chain of iron and steel enterprises based on block chain technology. Futur Gener Comput Syst 101:635–645. https://doi.org/10.1016/j.future.2019.07.008
Yermack D (2017) Corporate governance and blockchains. Rev Financ 21:7–31. https://doi.org/10.1093/rof/rfw074
Yi H (2021) Secure social Internet of Things based on post-quantum blockchain. IEEE Trans Netw Sci Eng. https://doi.org/10.1109/TNSE.2021.3095192
Yu B (2022) The Impact of the Internet on industrial green productivity: evidence from China. Technol Forecast Soc Change 177:121527. https://doi.org/10.1016/J.TECHFORE.2022.121527
Yu Z, Khan SAR, Umar M (2021) Circular economy practices and industry 4.0 technologies: a strategic move of automobile industry. Bus Strateg Environ. https://doi.org/10.1002/bse.2918
Yumei H, Iqbal W, Irfan M, Fatima, A (2021) The dynamics of public spending on sustainable green economy: role of technological innovation and industrial structure effects. Environ Sci Pollut Res 2021(1):1–19. https://doi.org/10.1007/S11356-021-17407-4
Zachariadis M, Hileman G, Scott SV (2019) Governance and control in distributed ledgers: understanding the challenges facing blockchain technology in financial services. Inf Organ 29:105–117. https://doi.org/10.1016/j.infoandorg.2019.03.001
Zhang D (2020) The innovation research of contract farming financing mode under the block chain technology. J Clean Prod 270:122194. https://doi.org/10.1016/j.jclepro.2020.122194
Zhang T, Li J, Jiang X (2021) Analysis of supply chain finance based on blockchain. Procedia Comput Sci 187:1–6. https://doi.org/10.1016/j.procs.2021.04.025
Zhu L, Li F (2021) Agricultural data sharing and sustainable development of ecosystem based on block chain. J Clean Prod 315:127869. https://doi.org/10.1016/j.jclepro.2021.127869
Zutshi A, Grilo A, Nodehi T (2021) The value proposition of blockchain technologies and its impact on digital platforms. Comput Ind Eng 155:107187. https://doi.org/10.1016/j.cie.2021.107187
Author information
Authors and Affiliations
Contributions
Yuk Ming Tang and Ka Yin Chau: conceptualization, supervision, methodology, writing — review and editing. Muhammad Waqas: data curation, visualization, supervision, visualization, editing; Arooj Fatima: writing — original draft, and software.
Corresponding author
Ethics declarations
Ethical approval and consent to participate
The authors declare that they have no known competing financial interests or personal relationships that seem to affect the work reported in this article. We declare that we have no human participants, human data, or human tissues.
Consent for publication
N/A
Competing interests
The authors declare no competing interests.
Additional information
Responsible Editor: Nicholas Apergis
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Tang, Y.M., Chau, K.Y., Fatima, A. et al. Industry 4.0 technology and circular economy practices: business management strategies for environmental sustainability. Environ Sci Pollut Res 29, 49752–49769 (2022). https://doi.org/10.1007/s11356-022-19081-6
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-022-19081-6