A self-assessment tool for evaluating the integration of circular economy and industry 4.0 principles in closed-loop supply chains

The integration of the circular economy (CE) and Industry 4.0 (I4.0) has attracted significant attention from scholars and practitioners. The effective integration between CE and I4.0 depends on the level of systemic assessment. This paper develops a self-assessment model to evaluate the systemic level of integration of CE and I4.0 within organizations using a dynamic capabilities perspective. The model uses a conceptual framework representing the most relevant CE–I4.0 integration practices under eight dimensions from the extant literature. The model also uses a graph-theoretic approach to evaluate the level of CE–I4.0 integration through a standardized index. The CE–I4.0 Integration Index (CE–I4.0 II) incorporates the interactions between different dimensions and practices, and enables quantifying the CE–I4.0 integration level. The index allows organizations to be grouped into three categories: “beginner, “ongoing,” and “performing.” The model CE–I4.0 II is implemented within four different organizations and evaluated to illustrate this model's industrial applicability. Finally, we discuss implications for theory and practice, and the potential extension of the study.