Impact of Digital Technology on Circular Economy

What is it about?

Net zero goals have made a stir in corporate environment to reconsider their strategies for circular economy and industry 4.0 (I4.0). Big data analytics (BDA) capabilities and internet of things are the two potential domains that are likely to have more influence on the green innovations and net zero performance. Scholarly literature underscores that the integration of BDA and green internet of things (GIoT) holds the potential to significantly augment net-zero based green performance. Simultaneously, the emergence of data-driven lean and green practices has garnered considerable attention and adoption in real-world operational settings. Consequently, scholars in the field of operations management have directed their focus towards examining the pivotal role played by advanced information technologies, particularly BDA and the GIoT. This study adopts the dynamic capabilities view paradigm to construct the theoretical model and to explore the relationships therein. Samples are sourced from small and medium-sized enterprises (SMEs) within the high-tech manufacturing sector, employing a three-wave time-lagged design. Hypothesis testing is conducted using Mplus 7.0 software, and conclusions are subsequently derived. The study results demonstrate that BDA capabilities and GIoT significantly impact both exploratory and exploitative ambidextrous green innovation. Moreover, DLGPs amplify the effect of ambidextrous green innovation on NZGP, underscoring the critical role of merging digital and sustainable practices in enhancing environmental and operational outcomes in the manufacturing sector

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