Key resources for industry 4.0 adoption and its effect on sustainable production and circular economy: An empirical study

Developing countries like South Africa is aiming to be a nation that has fully harnessed the potential of Industry 4.0 technological innovation to grow the economy and uplift people of the country. The country has motivated manufactures to focus on smart manufacturing considering the sustainable development aspects to develop circular economy capabilities. However, manufacturers are facing various resource related challenges, which has slowed down the progress of Industry 4.0 adoption. This study aspires to develop a theoretical model linking key resources for Industry 4.0 adoption that are essential to drive technological progress; and its effect on sustainable production and circular economy capabilities. The review of literature led to the identification of thirty-five resources that are essential for the adoption of Industry 4.0. Further, exploratory factor analysis was used to group the variables under relevant factors and thereafter research team developed a theoretical model that was further tested using PLS-SEM technique. Research findings indicate that production systems, human resources, project management, management leadership, green logistics, green design, information technology, big data analytics and collaborative relationships are key resources for Industry 4.0 adoption; second, Industry 4.0 adoption have a positive relationship with sustainable production and finally, sustainable production has a positive relationship with circular economy capabilities. The study concludes with theoretical and practical implications. (C) 2020 Elsevier Ltd. All rights reserved.

Automated summary

South Africa, as a developing country, is striving to fully harness the potential of Industry 4.0 technological innovation to boost economic growth and improve the living standards of its people. However, manufacturers are facing resource-related challenges that are slowing down the adoption of Industry 4.0.