Facilitating circular transformation in BRICS: the impact of Industry 4.0 and Global Value Chains on circular economy
摘要
In tackling the dynamics of the circular economy (CCE), Industry 4.0 and Global Value Chains (GVCs) demand vigilant management approaches to leverage their advantages in circular practices. Consequently, the current study aims to investigate the impact of Industry 4.0, such as Artificial Intelligence (AI), the Internet of Things (IoT), and cloud computing (CLC), and GVCs on CCE in BRICS countries. System Generalized Method of Moments and Partial Ordinary-Least-Squares econometric tests were used to examine these links. The key findings are: (1) improvements in AI, IoT, and CLC increase the level of CCE practices in BRICS. (2) Upgrade in GVCs position also improves the CCE principles in these economies. Current research has contributed to the current literature in two diverse ways: (1) it offers empirical outcomes on how Industry 4.0 and participation in GVCs encourage the CCE practices in BRICS. (2) It provided insights particular to BRICS economies, where fast growth meets with ecological challenges. The outcomes are associated with and extend theoretical frameworks, containing Dynamic Capabilities Theory, the Business-Technology Adoption model, and Natural Resources-Based Theory. The outcomes illustrated that the policies should be focused on channeling the investments and capital towards digital technologies and infrastructures, and strategic positioning within GVCs to nurture the economic transformations toward circular practices. Policymakers also need to prioritize enhancing digital technology integration within GVCs.