Twin transformation: The role of digitalization with artificial intelligence, big data and circular supply chain in circular economy performance for sustainability

Abstract

Research background:The fourth industrial revolution has significantly changed the operational processes of industries and influenced the industrial structures of multiple countries. These scenarios have resulted in organizations embracing digital technologies in their supply chains. However, the digital supply chain literature is still in its early stages of development. Purpose of the article: This study primarily aimed to understand whether artificial intelligence (AI) and big data influence circular economy performance (CEP) through the circular supply chain (CSC), along with exploitative and explorative integration. Methods: Data were collected using a questionnaire survey. The proposed hypotheses were tested using partial least squares structural equation modeling (PLS-SEM) via Smart PLS (4.0). The empirical analysis supported most proposed hypotheses. Findings & value added: The results indicate that the CSC supports digitalization in improving CEP. Additionally, exploitative integration does not influence the moderating role between big data and the CSC, nor does explorative integration between AI and the CSC. This study enables managers to understand that enabling technologies are suitable for facilitating the accomplishment of a CSC’s goals.