Beyond Technology: The Strategic Role of Human Resource Management in Advancing Circular Economy Performance

Abstract

This work aims to understand the role played by Industry 4.0 (I4.0) base technologies and circular economy–oriented human resource management ( CE ‐HR) in the advancement of the circular economy ( CE ) performance. The present study builds on the natural resource‐based view to propose and empirically test three hypotheses. A survey‐based research through a questionnaire was used to collect data from focal firms in the Spanish manufacturing sector. The theoretical model was tested using structural equation modeling. Findings indicate that there is a direct relationship between I4.0 base technologies and CE ‐HR management, and between CE ‐HR management and the CE firm performance. Furthermore, the results confirm the mediating effect of CE ‐HR management as an underlying mechanism bridging the use of I4.0 base technologies and improved CE firm performance. From these findings, it can be inferred that an effective transition toward circularity cannot be achieved solely through the adoption of I4.0 base technologies; rather, it requires HR management that is oriented toward the principles of the CE .