Studying the Relationship between Block Chain Technology and Circular Economy Dimensions from Production Aspect and Its Association with Organizational Performance: A Case Study of Pakistani Firms

Abstract

Blockchain technology and the circular economy are two distinct concepts, which together can serve the economy and businesses in a better way. This research focused on exploring the relationship between blockchain technology and circular economy components from the production aspect to increase organizational performance in Pakistan. The 302 observations were collected from Pakistani companies of different nature of work. A purposive sampling method and closed-question questionnaire were adopted for the collection of data. The PLS-SEM (4.0) method was utilized for analysis purposes. The results point toward blockchain technology’s positive effects on circular economy practices. Overall, blockchain technology shows an affirmative impact on green design (GD), green manufacturing (GM), and recycling and remanufacturing (RR) in Pakistan. However, the association between recycling and remanufacturing, environmental performance, and economic performance was not supported. It can be concluded that adopting the practices of the circular economy can significantly improve business operations in terms of financial and environmental performance. It is recommended that businesses should incorporate blockchain technology along with the practices of circular economy in manufacturing systems for achieving long-term goals.