Unveiling the interaction among circular economy, industry 4.0, and lean production: A multiple case study analysis and an empirically based framework

Abstract

Recent years have seen a growing interest among academics and practitioners in the approaches of Industry 4.0 (I40), Lean Production (LP), and Circular Economy (CE). Scientific studies have largely examined these approaches separately, or in a dual, pairwise combination. More recent research has also shown how I40 technologies and LP practices affect the implementation of CE strategies. In particular, it has been noted that I40 technologies and LP practices mutually not only enhance each other's efficacy but also have a positive impact on CE strategies. Despite this evidence, many of the existing works leave a critical gap in our knowledge about an integrated perspective among these three approaches. In other words, a more synergistic interaction among the I40 technologies, LP practices, and CE strategies is not yet well explored in the existing academic literature and needs to be developed. To address this research gap, this study leverages a multiple case study analysis of six companies operating in the manufacturing sector that operate with I40 technologies, LP practices, and CE strategies. Our results confirm that I40 technologies and LP practices foster each other and enable CE strategies. In addition, our empirical analysis adds to the existing studies that the synergistic interaction among the three approaches lies in the fact that the implementation of one approach triggers another one sequentially. In other words, the implementation of I40 technologies contributes to the activation of LP practices, which in turn enable the adoption of CE strategies. The evidence of our results has been visualized in empirically based framework that highlights for scholars and managers how manufacturing companies can optimize their transition pathway towards CE through I40 technologies and LP practices and paving thus the way for a more sustainable and effective industrial environment.