Reconciling the Literature on Industry 4.0 Technologies and Circular Economy: A Mediation–Moderation Analysis

Rajeev Ranjan Kumar, Alok Raj and Ana Beatriz Lopes de Sousa Jabbour

Business Strategy and the Environment, 2025, vol. 34, issue 7, 8946-8965

Abstract: This study advances the understanding of how I4.0 technologies and supply chain dynamic capabilities (supply chain integration and flexibility) can drive circular economy (CE) and sustainable performance. Utilizing a meta‐analysis approach, we employ meta‐structural equation modeling, subgroup analysis, and meta‐regression to provide various underlying mechanisms. The study draws on data from 84 previous empirical studies, encompassing evidence from over 30 countries. The findings indicate that supply chain integration and flexibility partially mediate the relationship between I4.0 technologies and CE practices. Further, CE practices and supply chain integration partially mediate the link between I4.0 technologies and sustainable performance. Subgroup analysis and meta‐regression reveal heterogeneity in the I4.0 technologies–CE practices relationship, considering the type of economies, digital competitiveness score, and Hofstede's cultural dimensions as moderators. The findings offer comprehensive insights for academics and practitioners on I4.0 technologies, CE practices, and sustainable performance.

Date: 2025
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