Analyzing the interplay between Lean Production and Industry 4.0 to support Circular Economy

Purpose This study aims to investigate the impact of Lean Production (LP) and Industry 4.0 (I4.0) on the adoption of Circular Economy (CE) within manufacturing firms, also considering the potential moderating effect of I4.0 on the link between LP and CE. By doing so, it addresses the limited and contrasting empirical evidence on how operational practices facilitate the adoption of CE. Design/methodology/approach This study adopted the Practice-Based View (PBV) as a theoretical lens and employed a quantitative research design. Data were collected via a survey of 151 manufacturing companies operating in Italy and analyzed using hierarchical multiple regression analysis to test the conceptual model. Findings The empirical results confirm that both LP and I4.0 are significantly and positively associated with CE adoption. I4.0 technologies have a stronger individual impact on CE adoption than LP. However, the hypothesized moderating effect of I4.0 on the LP–CE relationship is not supported. In other words, the implementation of technologies may not contribute to a positive variation in the level of CE adoption that is already achieved due to the implementation of LP practices. Hence, managers should pursue distinct CE strategies aligned with the unique capabilities of LP and I4.0, respectively. Originality/value This research contributes to the operations management and CE literature by providing empirical evidence on the role of LP and I4.0 in enabling CE adoption. It offers valuable insights for practitioners and policymakers aiming to foster CE adoption in manufacturing, dealt with the links adopting the PBV, challenging the presumed moderating effect of I4.0, and providing actionable recommendations.