Total productive maintenance and Industry 4.0 in a sustainability context: exploring the mediating effect of circular economy

What is it about?

The purpose of this research is to establish a conceptual model to understand the impact of Total Productive Maintenance (TPM) and Industry 4.0 (I4.0) on the transition of a Circular Economy (CE). Also, the paper explores the combined impact of TPM, I4.0, and CE on the sustainability performance (SP) of manufacturing firms. The conceptual model is proposed using dynamic capability view (DCV) and empirically validated by partial least squares-structural equation modeling (PLS-SEM) using 304 responses from Indian manufacturing firms. The results suggest that I4.0 positively impacts TPM, CE, and SP, followed by TPM's positive impact on CE and SP. Also, CE has a positive influence on the SP of manufacturing firms. Furthermore, CE partially mediates the relationship between I4.0 and SP and TPM and SP. The study also identifies TPM, I4.0, and CE as a new bundle of dynamic capabilities to deliver SP in manufacturing firms. The present research adds to the DCV knowledge and literature by identifying the importance of CE in the settings of I4.0 and TPM, especially in the context of sustainability. Also, the current study offers a new set of dynamic capabilities and provides some significant future recommendations for researchers and practitioners.

Featured Image