Application of Industry 4.0 tools to empower circular economy and achieving sustainability in supply chain operations

Abstract

This study considers how effective South African manufacturing enterprises have used Industry 4.0 tools and applications to achieve sustainability in supply chain operations. Organization Information Processing Theory (OIPT) suggests Industry 4.0 tools should enhance operational capabilities. South African manufacturers were surveyed and 200 responses were received. Partial least squares structural equation modelling (PLS-SEM) was used to test the conceptual model. We provide evidence that using Industry 4.0 tools to improve resource consumption rate and reduce waste and pollution is most likely to enhance sustainable supply chain operations. Both the control orientation and the flexible orientation of the production team enhance their ability to generate positive sustainable outcomes from Industry 4.0 use. The results may not be generalizable to other, less developed nations, which struggle with Industry 4.0 implementation but should generalize to other developing nations. This study has a clear implication that there are viable pathways to sustainable supply chain operations, driven by Industry 4.0 applications, through improving resource consumption and reducing waste and pollution.