Industry 4.0 and Circular Economy: Examining the Role of Supply Chain Integration and Corporate Social Responsibility

ABSTRACT The advent of Industry 4.0 is profoundly reshaping supply chains, driving a transformation in traditional business models and operational paradigms. Central to this evolution are smart technologies, which streamline supply chain processes and develop collaboration to address pressing sustainability challenges. This study investigates the intricate linkages between Industry 4.0 technologies and the transition to a circular economy, emphasizing the mediating role of supply chain integration (SCI). Additionally, it explores the moderating influence of corporate social responsibility (CSR) to determine how ethical and sustainable practices enhance the effectiveness of integrated supply chain mechanisms in achieving circular economy objectives. Focusing on the Chinese steel sector, a critical contributor to national economic growth but also a significant emitter of carbon dioxide, the study contextualizes these dynamics in an industry grappling with overcapacity, high emissions, and increasing scrutiny under China's carbon neutrality commitments. Furthermore, this research employs SmartPLS 4 to analyze the proposed relationships. Findings reveal that smart manufacturing and data processing technologies significantly contribute to the circular economy transition, with SCI serving as a pivotal mediating factor. Furthermore, CSR emerges as a crucial moderator, amplifying the alignment of integrated supply chain practices with sustainability goals. The study underscores the transformative potential of Industry 4.0 technologies, SCI, and CSR in fostering circularity, offering actionable insights for policymakers and industry leaders.