Empirical analysis of circular economy–Industry 4.0 integration for enhancing sustainable performance: A multi-level framework across micro, meso, and macro

The integration of circular economy (CE) practices with Industry 4.0 (I4.0) technologies in industrial sectors remains limited, primarily due to a lack of practical knowledge about key drivers, barriers, and mitigation strategies. Despite their strong potential to enhance sustainable performance (SP), the adoption of CE–I4.0 faces several challenges across organizational levels. This study aims to empirically investigate the key drivers, barriers, and mitigation strategies for effective CE–I4.0 adoption, focusing on micro, meso, and macro-organizational contexts. Data were collected through an open-ended survey of 287 professionals, including sustainability leaders, managers, executives, and consultants, with 128 responses from micro level organizations, 87 from meso level organizations, and 71 from macro level organizations. The findings reveal level-specific drivers: “Technological innovation” at the micro level, “Regulatory pressure and sustainability standards” at the meso level, and “Regulatory and policy support” at the macro level. Across all levels, financial constraints emerged as the most critical barrier: “High initial investment costs” at the micro level, “High capital investment requirements” at the meso level, and “High upfront and ongoing costs” at the macro level. Mitigation strategies varied accordingly, including financial, skill, and change management at the micro level; education, collaboration, and technology adoption at the meso level; and awareness, stakeholder engagement, and infrastructure development at the macro level. These results underscore the need to tailor interventions to organizational scale while coordinating system-wide actions for enhanced sustainability. The study introduces a CE–I4.0 integration framework that consolidates these insights into an evidence-based roadmap linking drivers, barriers, and strategies across levels, providing actionable guidance for managers and policymakers. By offering a multi-level empirical analysis of CE–I4.0 integration, the study advances theory and practice, supporting coordinated adoption that enhances efficiency, sustainability, and organizational resilience.