Examining the Effects of Industry 4.0 Adoption, Information Acquisition Capability, and Organizational Ambidexterity on Innovation and Circular Economy Performance

Saumyaranjan Sahoo, Ashwani Kumar, Sachin Kumar Mangla and Alessio Ishizaka

Business Strategy and the Environment, 2025, vol. 34, issue 2, 1590-1606

Abstract: Regulatory authorities are putting a lot of pressure on manufacturers to devise strategies to boost their contribution to the circular economy. The limited comprehension surrounding the complex interplay that exists between the deployment of Industry 4.0 (I4.0) strategies, the capability to acquire information, and the ability to balance exploration and exploitation activities within an organization acts as a barrier for manufacturers to attain the optimal levels of organizational performance. As a result, the purpose of the current investigation is to investigate the strategic execution of I4.0 on manufacturers' information acquisition capability in order to foster the ambidexterity required to flourish in the innovation‐driven high‐performance ecosystem for attaining circular economy performance. In this study, data from a cross‐sectional survey that included responses from a sample of 238 Indian manufacturers were assessed using structural equation modeling. According to the results, I4.0 technologies assist organizations in strengthening their exploitative and explorative capabilities, allowing them to achieve success in innovation, which is directly related to their performance in circular economy activities. Unexpectedly, the association between an organization's information acquisition capability and its innovation performance is not substantial, but it is completely mediated by both exploitative and explorative capabilities, which are characterized as organizational ambidexterity.

Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/bse.4067

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:34:y:2025:i:2:p:1590-1606

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1002/(ISSN)1099-0836

Access Statistics for this article

Business Strategy and the Environment is currently edited by Richard Welford

More articles in Business Strategy and the Environment from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().