Industry 4.0, cleaner production and circular economy: An integrative framework for evaluating ethical and sustainable business performance of manufacturing organizations

Abstract

Abstract Organizations are increasingly facing pressure for changing manufacturing models from traditional to sustainable which accordingly reinforces the need for assessing their performance on sustainability issues. The present study developed a framework based on concepts of circular economy, sustainable cleaner production and Industry 4.0 standards to assess sustainability performance of manufacturing companies and to guide them in prioritizing investment in potential solutions for enhancing performance on sustainability. The study involved a mix of quantitative and qualitative research methods. An exhaustive review of related literature was conducted, followed by several rounds of discussions (Delphi Method) with experts, to identify and finalize practices related to Industry 4.0, cleaner production and circular economy. Best-Worst Method (BWM) was then used to prioritize identified practices. Majority of the sustainability frameworks in extant literature were validated using the case study approach. The present research combined case study approach with multi-criteria decision making (MCDM) tools, which enhanced applicability of the proposed framework. Findings suggest that circular economy practices are most important for increasing sustainability performance in manufacturing, followed by practices of cleaner production and Industry 4.0. ‘Supply Chain Traceability/Information’, ‘Reuse and recycling infrastructure’, and ‘Natural and clean environment’, were the top three practices identified for manufacturing organizations aiming to enhance sustainability. The findings provide empirical support for adopting practices of the circular economy, cleaner production and Industry 4.0 by manufacturing organizations to improve sustainability performance. The developed framework can be readily used by managers to evaluate their own as well as the upstream and/or downstream partners’ sustainability performance. It also provides policy guidance for promoting sustainability approaches in manufacturing.