Technological transformation in the manufacturing industry for sustainable development

Abstract

Purpose – Sustainable development needs systemic adjustments combining economic, environmental, and social objectives. The circular economy is designed to fulfil these goals by eliminating waste, increasing the product life cycle, and recycling resources. In manufacturing firms, digital twin (DT) technology, a subset of Industry 4.0, enables sustainable development through the circular economy, but firms still face challenges in its adoption. This study analyses various responsible variables for adoption of DTs in manufacturing firms. Design/methodology/approach – This study proposes a conceptual model for adopting and implementing DTs based on the Technology-Organizational-Environmental (TOE) framework and the Technology Acceptance Model (TAM). The proposed model is tested and validated using Partial Least Squares-Structural Equation Modelling (PLS-SEM) to identify the obstacles that impact the adoption of DTs in manufacturing companies. Findings – The study reveals that technological, organisational, environmental, and security factors significantly impact DT adoption, while individual intention, gender, and work experiences do not. Organizational factors play a significant mediating role between individual intention factors and DT adoption. Moreover, gender significantly moderates the relationship between individual intention factors and the adoption of DT. Additionally, work experience significantly moderates the relationship between organizational factors and the adoption of DT. Originality/value – This research provides a novel perspective on technical implementation of DTs and its adoption for business values by integrating the TOE framework and TAM model, supported by empirical validation using PLS-SEM. The findings contribute to understanding how technological, security, organizational, individual intention, and environmental factors affect manufacturing firms’ adoption processes for sustainable development through the circular economy.