Technological Revolution and Circular Economy Practices: A Mechanism of Green Economy

Syed Abdul Rehman Khan, Muhammad Umar, Alam Asadov, Muhammad Tanveer and Zhang Yu
Additional contact information
Syed Abdul Rehman Khan: School of Management and Engineering, Xuzhou University of Technology, Xuzhou 221006, China
Muhammad Umar: Faculty of Business, Economics and Social Development, Universiti Malaysia Terengganu, Kuala Terengganu 21030, Malaysia
Alam Asadov: College of Business Administration, Prince Sultan University, Rafha Street, Riyadh 11586, Saudi Arabia
Muhammad Tanveer: Prince Sultan University, Rafha Street, Riyadh 11586, Saudi Arabia
Zhang Yu: School of Economics and Management, Chang’an University, Xi’an 710064, China

Sustainability, 2022, vol. 14, issue 8, 1-14

Abstract: Rising environmental concerns, Industry 4.0 technologies, and circular economy (CE) practices are the prevailing business considerations of the current time, and they are transforming business models. Keeping in view the importance of these considerations, this work looks into the role of Industry 4.0 technologies in adoption of CE practices and the impact of CE practices on firms’ performance. The current study collected data from 213 automotive firms located in Eastern European countries including Poland, Romania, and Ukraine. Using Covariance-Based Structural Equation Modelling (CB-SEM), the current study provides some important findings. Firstly, Industry 4.0 technologies significantly enhance circular economy practices. Secondly, circular economy practices are found to be positively related with environmental and operational performance. Lastly, higher economic and operational performance boost organizational performance. Hence, the current study provides deeper understanding regarding performance implications of Industry 4.0 technologies and offers insights about ways of promoting sustainable performance in the current age of digitization.

Keywords: circular economy; Industry 4.0; green economy; CB-SEM; automotive industry (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/8/4524/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/8/4524/ (text/html)

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:gam:jsusta:v:14:y:2022:i:8:p:4524-:d:790991

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().