Impact of Industry 4.0 and 5.0 Technologies on Circular Economy and Sustainable Performance Using Hybrid PLS-SEM and ANN Approach

Abstract

This study examined the relationship between Industry 4.0 and 5.0 technologies along with circular economy practices; their impact on energy production, economic performance, and environmental peace; and how these factors collectively affect sustainable firm performance. This pioneering study investigates the transformative impact of Industry 4.0 and 5.0 technologies on circular economy practices and sustainable performance in food chains. The objective of this study assesses the impact of Industry 4.0 and Industry 5.0 technologies on the circular economy to find the mediating role of circular economy strategies on the sustainable performance of food chains. The circular economy has been proven to be the best alternative to overcome the scarcity of resources by introducing the idea of recycling, reusing, and remanufacturing. Based on this concept, we used diffusion of infusion theory to analyze these technologies’ impact on society and firms’ sustainable performance. The study data were collected through a survey of 388 food chains from specific areas of Pakistan using a purposive approach. A hybrid partial least squares structural equation modeling and an artificial neural network approach were used to analyze the data. Our research contributes to the existing literature by including hybrid PLS-SEM and ANN approaches in modeling complex relationships which reveals significant implications for policymakers, practitioners, and researchers, highlighting the importance of these technologies. Food chains can implement these practices to save time, costs, waste of resources, and pollution which will eventually create environmental peace, economic growth, and good food quality products.