How stakeholder pressure drives circular business model adoption: the mediating role of Industry 4.0 and organizational agility

What the paper says

Purpose This study investigated the role of stakeholder pressure (SPRE) as a key driver of circular business model (CBM) adoption in Ecuador's manufacturing sectors. It further explored how Industry 4.0 technologies (I4.0T) and organizational agility (OA) act as mediators in this process, enabling organizations to navigate the transition toward a CBM more effectively. Design/methodology/approach A theoretical framework was developed, incorporating CBM, SPRE, OA and I4.0T. Empirical data were collected through a survey of 150 organizations in Ecuador. The study employed partial least squares structural equation modeling (PLS-SEM) based on established measurement models to analyze the relationships among these variables. Findings The results showed a significant influence of SPRE on CBM adoption. Furthermore, I4.0T acted as a mediator in the relationship between SPRE and CBM adoption, while OA played a similar role in the link between SPRE and CBM. Furthermore, the findings highlight the impact of I4.0T in optimizing product design and traceability, which accelerates the transition to a circular economy (CE). In addition, OA strengthens the adaptive capacity of organizations, enabling them to proactively align with CBM. Originality/value This research addressed a critical gap in understanding the interplay of stakeholder dynamics, technological innovation and agility in CBM adoption. It provides empirical evidence on the mediating role of I4.0T and OA, offering valuable insights for organizations seeking to transition toward CBM.