Title: The adoption of Industry 4.0 technology and the circular economy: a solution for the sustainable development of enterprises

Authors: Minh-Tri Ha; Son-Tung Mai; Tien-Khoa Tran; Truong-Son Nguyen

Addresses: School of Business, International University, VNU-HCM, Quarter 6, Linh Trung Ward, Thu Duc City, Ho Chi Minh City, 71300, Vietnam; Vietnam National University-HCMC, Linh Trung Ward, Thu Duc City, Ho Chi Minh City, 71300, Vietnam ' School of Business, International University, VNU-HCM, Quarter 6, Linh Trung Ward, Thu Duc City, Ho Chi Minh City, 71300, Vietnam; Faculty of Becamex Business School, Eastern International University, Binh Duong, 75100, Vietnam ' School of Business, International University, VNU-HCM, Quarter 6, Linh Trung Ward, Thu Duc City, Ho Chi Minh City, 71300, Vietnam; Vietnam National University-HCMC, Linh Trung Ward, Thu Duc City, Ho Chi Minh City, 71300, Vietnam ' Faculty of Becamex Business School, Eastern International University, Binh Duong, Vietnam

Abstract: The application of advanced technologies inherent in Industry 4.0 and circular economy standards can significantly increase productivity and competitiveness while promoting sustainable practices and reducing environmental impact. However, these advances often require significant investment and logistical and operational challenges for businesses unaccustomed to such models. This study confirms how the adoption of Industry 4.0 (I4) and the circular economy (CE) practice affect firm performance (FP) of enterprises in Vietnam. This quantitative research employs a questionnaire-based survey with 260 respondents who were senior employees or managers at firms in Vietnam. This paper analysed data applying partial least squares structural equation modelling (PLS-SEM). Our findings demonstrate that I4 and CE practices impact four aspects of FP: economic, environmental, operational, and social performance. Finally, this study can be a relevant resource for managers and policymakers to ensure sustainable development for organisations and even on a national scale, especially in developing countries.

Keywords: Industry 4.0; circular economy; Industry 4.0 technology; firm performance; Vietnam; PLS-SEM; partial least squares structural equation modelling.

DOI: 10.1504/JGBA.2023.138497

Journal for Global Business Advancement, 2023 Vol.16 No.2, pp.225 - 249

Received: 01 Dec 2023
Accepted: 06 Dec 2023
Published online: 08 May 2024 *

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