Digital transformation and sustainability in the automotive industry: key enablers for Industry 4.0 and circular economy

Purpose This study identifies essential critical success factors (CSFs) for the integration of Industry 4.0 (I4.0) and Circular Economy (CE) concepts in the automotive sector, focusing on successful transitions toward sustainable manufacturing. Design/methodology/approach A comprehensive literature review and experts' opinions were used to find key CSFs, which were ranked using Fuzzy Best-Worst Method (F-BWM), a robust multi-criteria decision-making approach. Findings The study quantifies the global influence of these factors, with top CSFs being “Environmental Impact Reduction Technologies,” “Technology Interoperability ” and “Sustainability Awareness,” suggesting organizations to adopt more advanced and environmentally friendly technologies. Research limitations/implications Nevertheless, the work has limitations, as it focuses on a narrow range of CSFs and employs a singular methodology that disregards interdependence. Moreover, the study's results may not be entirely generalized across other industries. Future studies can address the limitation to an extent by adding a proper description in terms of the CSFs list and methodologies like DEMATEL or ANP, considering the interrelationship among factors or exploring across-the-industry comparisons. Practical implications The findings provide valuable insights for automotive organizations wishing to remain competitive through sustainable manufacturing practices. Originality/value This research is unique in utilizing the F-BWM approach in the automobile industry, thus bridging the gap from the literature on I4.0.