Industry 4.0 and circular economy in an era of global value chains: What have we learned and what is still to be explored?

Abstract

This article reviews the industry 4.0 (I4.0) and circular economy (CE) literature from a global value chain (GVC) perspective. More specifically, it (1) summarizes the empirical findings on the applications of I4.0 and CE practices; (2) explores the previous literature and identifies several future research directions to advance the existing literature. In this respect, the interface between I4.0 and CE research is a relatively young field of inquiry that has been little concerned with developments in GVCs. We systematically review 112 peer-reviewed papers in the field of I4.0 and CE to distill key future research opportunities and trends in the GVC field. We develop three specific conclusions from our literature review. First, GVCs can vary widely within the various forms of I4.0 technologies with the various CE practices. Second, GVC research is underdeveloped with regard to I4.0 and CE. Third, our findings are congruent with previously published studies, which recognize the importance of GVC research that has generated a rich body of knowledge, mainly from a governance perspective in operations management, supply chain management, and international business. Likewise, our study offers promising avenues for future research studies at the intersection of I4.0, CE, and GVCs. Our systematic literature review suggests that there are many opportunities to advance the I4.0 and CE debates in the burgeoning field of GVC.