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Modeling and Analyzing the Impact of the Internet of Things-Based Industry 4.0 on Circular Economy Practices for Sustainable Development: Evidence From the Food Processing Industry of China

  • Sun, Xiaoli1
  • Wang, Xuan2
  • 1 Systems and Industrial Engineering Technology Research Center, Zhongyuan University of Technology, Zhengzhou , (China)
  • 2 Department of Management Science, College of Management, Shenzhen University, Shenzhen , (China)
Published Article
Frontiers in Psychology
Frontiers Media SA
Publication Date
Apr 25, 2022
DOI: 10.3389/fpsyg.2022.866361
  • Psychology
  • Original Research


The Industry 4.0 concept proposes that new cutting-edge technologies, such as the Internet of Things (IoT), will grow. The acceptance of IoT in the circular economy (CE) is still in its infancy, despite its enormous potential. In the face of growing environmental affairs, IoT based Industry 4.0 technologies are altering CE practices and existing business models, according to the World Economic Forum. This research investigates the function of IoT-based Industry 4.0 in circular CE practices, as well as their impact on economic and environmental performance, which in turn influences overall organizational performance. China-based enterprises provide information for the study, which includes data from 300 companies. Utilizing a structural equation modeling framework known as partial least squares structural equation modeling (PLS-SEM). The major findings are presented in the study: (I) the IoT significantly improves the activities of the CE; (II) the IoT significantly improves the practices of the CE; and (III) the IoT meaningfully advances the practices of CE (green manufacturing, circular design, remanufacturing, and recycling). Moreover, the findings shows that environmentally friendly business practices help enhance environmental performance of firm, while also stimulating their economic performance; and improved environmental performance has a significant positive influence on firm performance. This research lays the groundwork for contributing nations/companies to attain economic and long-term sustainability goals at the same time by incorporating IoT-based Industry 4.0 technology into CE practices.

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