Challenges in Integrating Industry 4.0 and Circular Supply Chain Practices: A Grey Influence Analysis in the Indian Textile Industry

Abstract

Growing concerns such as resource scarcity and climate change are compelling organizations to reassess their environmental and social responsibilities. In response to these challenges, firms are increasingly embedding long‐term sustainability principles into their operational and strategic activities. However, the effective integration of Industry 4.0 with CSC to achieve sustainable supply chain performance remains limitedly explored in existing studies. To fulfill the research gaps, this study identifies and examines the challenges in integrating Industry 4.0 and Circular Supply Chain (CSC) practices, and develops a strategic framework that enables sustainable supply chain operations in the Indian textile industry. To accomplish this objective, a structured three‐phase research framework is adopted. In the first phase, challenges in integrating Industry 4.0 and CSC practices were identified through an extensive literature review and consultation with domain experts. In the second phase, the study utilized Grey Influence Analysis (GINA) to assess and validate the proposed framework. Data were collected from domain experts through structured questionnaires and in‐depth interviews. In the final phase, a sensitivity analysis was conducted to check the robustness of the result. The findings of GINA offer compelling support for institutional theory and institutional voids. The results provide meaningful theoretical insights by extending the literature on sustainable supply chain integration and offer practical guidance for managers seeking to enhance sustainability performance. Overall, the study supports supply chain practitioners in strategically implementing the integration of CSC and Industry 4.0 to achieve sustainable supply chain operations.