Towards circular economy: A IoT enabled framework for circular supply chain integration

Nowadays, the Internet of Things (IoT) has evolved beyond mere buzzword status, emerging as a pivotal force that can confer a competitive advantage in the market. By facilitating seamless communication between objects and the internet, IoT catalyzes unprecedented connectivity between machines and objects. An inherent advantage lies in its capacity to facilitate real-time information sharing, enabling efficient management of vital aspects within supply chain management, including inventory, products, and orders. Therefore, this study investigates the impact of IoT on supply chain performance, with a specific focus on the mediating role of interconnected systems in supply-and-demand dynamics and the performance of supply chain firms within a sustainable circular economy context. A survey involving 268 manufacturers forms the basis of the quantitative data analysis. Partial Least Squares Structural Equation Modeling (PLS-SEM) was employed to test the relationships among latent variables and constructs. The results highlight the significant influence of IoT capabilities on both supply chain performance and the integration of internet-enabled supply-and-demand processes. Concurrently, the study reveals a positive effect of supply-and-demand integration within internet-enabled supply chains on supply chain performance. Moreover, the integration of internet-enabled supply-and-demand processes emerges as a crucial mediator, strengthening the relationship between IoT capabilities and supply chain performance. This study provides valuable insights for managers, researchers, and policymakers by fostering a deeper understanding of the vital role that IoT plays in cultivating and enhancing superior supply chain management practices and overall performance. The study highlights the significant benefits of IoT in enhancing supply chain performance through improved real-time tracking, inventory management, and resource optimization. It also emphasizes the crucial mediating role of integrating internet-enabled supply-and-demand processes in improving overall supply chain efficiency and responsiveness.

Computers & Industrial Engineering, 192, 110194