Although the crucial role of Industry 4.0 (Agri 4.0) is well documented in innovation literature, its influence on innovation performance (IP) and how circular economy (CE) practices influence the Industry 4.0–IP relationship remains underexplored. This paper, therefore, examines the mediating role of CE in the direct link between Industry 4.0 and IP among agribusiness firms in emerging economies.
Drawing from the resource-based view (RBV), a framework of four hypotheses was proposed and validated using survey data from the agribusiness firms in Ghana. Data were gathered from 326 agribusiness firms in Ghana. The model was validated by partial least squares-structural equation modeling (PLS-SEM).
The results showed a direct significant relationship between both Industry 4.0, circular economy capabilities and IP. The findings further revealed that the influence of Industry 4.0 on IP is not just a bivariate relationship but also mediated through CE. The outcome of this study provides evidence that though Industry 4.0 remains crucial to driving IP, superior IP can be achieved through CE implementation.
Despite the relevance of this study, it has some limitations that should be acknowledged. The research was conducted only in Ghana, limiting the generalizability of findings to other emerging economies with different technological infrastructures, agricultural practices and regulatory environments.
The outcome of this study offers an important extension to the frontiers of innovation literature by examining how IP in the agribusiness space can be enhanced through Industry 4.0 and CE implementation, which is quite rare.
