An industry 4.0 adoption in the circular economy application hierarchical model: driver, enable and barrier aspects

• Published in: Industrial management + data systems Vol. 124; no. 1; pp. 386 - 415
• Main Authors: Abdul-Hamid, Asma-Qamaliah, Ali, Mohd Helmi, Osman, Lokhman Hakim, Tseng, Ming-Lang, Omar, Ahmad Raflis Che
• Format: Journal Article
• Language: English
• Published: Wembley Emerald Publishing Limited 02.01.2024; Emerald Group Publishing Limited
• Subjects: Biodiversity; Circular economy; Consumption; Criteria; Decision making; Deforestation; Delphi method; Emission standards; Empirical analysis; Industrial applications; Industry 4.0; Internet of Things; Methodology; Palm oil; Sustainability; Sustainable development; Vegetable oils; Fuzzy-based ANP; Industry 4.0; Circular economy; Resource dependency theory; Ecological modernisation theory
• ISSN: 0263-5577; 1758-5783
• DOI: 10.1108/IMDS-12-2022-0780

PurposeThis paper aims to contribute significantly to the empirical investigations on adopting Industry 4.0–circular economy in the Malaysian palm oil industry. The paper also aims to theorise and empirically assess a comprehensive model incorporating three aspects and 51 criteria.Design/methodology/approachA two-stage methodology is proposed using the fuzzy Delphi method and the fuzzy-based analytical network process. Twenty-seven criteria on adoptability of industry 4.0–circular economy were selected for the first-stage methodology, followed by identifying each criteria's intersection with the overall objectives.FindingsThe findings indicate that financial constraints, the lack of a collaborative I4.0–CE model, laws and policy, low management support and the training of dedicated employers in I4.0–CE-application are the top five criteria requiring critical attention from the POI.Practical implicationsThe overall sustainability advantages of the POI are identified and discussed in depth to establish criteria for industry 4.0–circular economy applications.Originality/valueThis study fills the previous research gap by theoretically explaining POI's industry 4.0 adoption–circular economy from the perspective of two underpinning theories. Due to the pressure towards sustainability, the industry must be ready to adopt industry 4.0–circular economy applications, and resources must be managed appropriately and effectively by sharing and integrating. Advanced industry 4.0 technologies and pragmatic practices such as a circular economy are needed to achieve optimal sustainable development while retaining commercial success.