Exploring the synergistic effects of circular economy, Industry 4.0 technology, and green human resource management practices on sustainable performance: Empirical evidence from Indian companies

Abstract

This study investigates the synergistic effects of circular economy (CE) practices, Industry 4.0 technology, and green human resource management (HRM) practices on sustainability and performance in Indian companies. CE focuses on resource efficiency, waste minimization, and material recyclability. Industry 4.0 incorporates modern digital technologies into manufacturing, resulting in smart factories that are more efficient and flexible. Green HRM practices include implementing human resource rules that promote environmental sustainability. Using structural equation modeling (SEM) on data from 213 respondents across various Indian firms, our research reveals several novel insights, such as CE practices significantly enhancing sustainability, demonstrating their critical role in minimizing waste and improving resource management; moderating the role of Industry 4.0: Industry 4.0 technology moderates the relationship between CE practices and sustainability, and green HRM practices positively affect CE practices and sustainable performance. Moreover, the study's uniqueness stems from its comprehensive approach, which reveals that combining these three elements CE practices, Industry 4.0 technology, and green HRM creates a powerful synergy that significantly improves both sustainability efforts and overall company performance, providing actionable insights for business looking to implement more effective and integrated sustainability strategies. These findings offer a valuable roadmap for companies aiming to achieve more impactful and cohesive sustainability initiatives.