An industry 4.0 adoption in the circular economy application hierarchical model: driver, enable and barrier aspects

Abstract

Purpose

This paper aims to contribute significantly to the empirical investigations on adopting Industry 4.0–circular economy in the Malaysian palm oil industry. The paper also aims to theorise and empirically assess a comprehensive model incorporating three aspects and 51 criteria.

Design/methodology/approach

A two-stage methodology is proposed using the fuzzy Delphi method and the fuzzy-based analytical network process. Twenty-seven criteria on adoptability of industry 4.0–circular economy were selected for the first-stage methodology, followed by identifying each criteria's intersection with the overall objectives.

Findings

The findings indicate that financial constraints, the lack of a collaborative I4.0–CE model, laws and policy, low management support and the training of dedicated employers in I4.0–CE-application are the top five criteria requiring critical attention from the POI.

Practical implications

The overall sustainability advantages of the POI are identified and discussed in depth to establish criteria for industry 4.0–circular economy applications.

Originality/value

This study fills the previous research gap by theoretically explaining POI's industry 4.0 adoption–circular economy from the perspective of two underpinning theories. Due to the pressure towards sustainability, the industry must be ready to adopt industry 4.0–circular economy applications, and resources must be managed appropriately and effectively by sharing and integrating. Advanced industry 4.0 technologies and pragmatic practices such as a circular economy are needed to achieve optimal sustainable development while retaining commercial success.

Citation

Abdul-Hamid, A.-Q., Ali, M.H., Osman, L.H., Tseng, M.-L. and Omar, A.R.C. (2024), "An industry 4.0 adoption in the circular economy application hierarchical model: driver, enable and barrier aspects", Industrial Management & Data Systems, Vol. 124 No. 1, pp. 386-415. https://doi.org/10.1108/IMDS-12-2022-0780