Investigating the Impact of Circular Economy Strategies on Financial Performance with the Mediating Role of Human-Centric Sustainable Supply Chain Management
Litsenziya: cc-by
Annotatsiya
Industry 5.0 has shifted attention from automation alone to the human conditions under which Circular Economy Strategies (CES) create financial value. This study examines whether Human-Centric Sustainable Supply Chain Management (HC-SSCM) mediates the relationship between CES and Financial Performance (FP) in Saudi manufacturing firms. Data were gathered through a structured questionnaire from 240 firms and analyzed with a two-stage design that combined Partial Least Squares Structural Equation Modeling and Artificial Neural Network (ANN) analysis. The results show that CES has a positive direct association with competitor-relative FP and a strong positive association with HC-SSCM, while HC-SSCM is also positively associated with Financial Performance. The indirect association from CES to FP through HC-SSCM is significant, with a Variance Accounted For of 47.9%, indicating complementary partial mediation. ANN results further show that cognitive ergonomic support and human-robot collaboration are stronger predictors of self-reported FP than the technical circular variables alone. These findings suggest that circular strategies are more strongly associated with favorable financial outcomes when reverse-logistics and recovery activities are supported by worker-centered decision support, collaborative technologies, and adaptive problem solving.
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