Aligning Industry 4.0 technologies with sustainability: the strategic role of circular open innovation and circular ambidexterity

Document Type

Article

Source of Publication

Industry 4 0 and Sustainability Integrating Digital Technologies and Circular Models for A Sustainable Future

Publication Date

1-1-2026

Abstract

The transition from linear production to a circular economy demands more than the deployment of Industry 4.0 technologies. In practice, many organizations adopt these technologies with a narrow focus on efficiency and productivity gains, rather than strategically aligning them with the principles of a circular economy and sustainability goals. This chapter advances a conceptual framework in which circular open innovation (COI) strengthens the relationship between Industry 4.0 technologies and circular ambidexterity. The study found that organizations with high COI engagement through knowledge-sharing platforms, blockchain-enabled supply-chain transparency, and artificial intelligence (AI)-driven circular analytics amplify Industry 4.0’s potential, enabling scalable circular business models and regenerative outcomes. Conversely, organizations with low COI engagement may use Industry 4.0 technologies for efficiency gains, missing opportunities to create truly regenerative systems. Thus, by integrating digital transformation, COI, and circular ambidexterity lenses, this chapter clarifies how and under what conditions advanced technologies foster sustainable value creation. This chapter presents new investigative avenues for scholars examining the Industry 4.0-sustainability nexus and offers managers and policymakers guidance on aligning technology investments, collaborative partnerships, and circular economy strategies.

ISBN

[9780443328817, 9780443328800]

Publisher

Elsevier

First Page

387

Last Page

406

Disciplines

Business

Keywords

circular ambidexterity, circular exploitation, circular exploration, circular open innovation, digital circular transformation, Industry 4.0, sustainability

Scopus ID

105032965768

Indexed in Scopus

yes

Open Access

no

Link to Full Text

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