Towards Sustainability in Industry 5.0: Analysis of Drivers and Barriers to Implementing Circular Economy in the Petrochemical Industry Supply Chain

Document Type : Research/ Original/ Regular Article

Authors

1 Assistant Prof., Department of Technology Management, Islamic Azad University, Qom Branch, Qom, Iran.

2 PhD Student, Faculty of Management, Department of Technology Management, Islamic Azad University, Central Tehran Branch, Tehran, Iran.

3 Master's Degree, Department of Management, Faculty of Economic and Administrative Sciences, University of Qom, Qom, Iran.

Abstract

With the accelerating pace of globalization, companies operating within the petrochemical industry’s supply chain strive to develop more complex, customer-centric, and sustainable supply chains. Amid this transformation, although Industry 4.0 has played a catalytic role in the transition from a linear economy to a circular economy, its prioritization of machines over humans has led to the neglect of some sustainability objectives. Industry 5.0, however, focuses on integrating technology with human values to achieve sustainable development goals. Combining the circular economy and Industry 5.0 leads to sustainable synergies across various industries. Nevertheless, implementing a circular economy is accompanied by both drivers and barriers. Accordingly, the present study aims to identify and analyze the drivers and barriers of implementing a circular economy in the petrochemical industry’s supply chain, based on sustainability within the framework of Industry 5.0. In the first phase, the drivers and barriers were identified through a literature review. In this stage, three main drivers and four key barriers were validated by experts using the Delphi technique. In the next phase, the relationships among these drivers and barriers were identified using MICMAC software, and their hierarchical levels were determined through the Interpretive Structural Modeling (ISM) technique. Ultimately, a schematic model of the drivers and barriers to implementing a circular economy based on Industry 5.0 sustainability in the petrochemical supply chain was developed. Based on their influence and dependence, the identified barriers were classified into four clusters. The results indicated that design and engineering barriers, as well as social drivers, have a limited impact on implementing a circular economy. Technical barriers, which fall under the independent cluster, have a high level of influence. Notably, economic barriers and technologicaland economic drivers were categorized in thelinkage cluster, indicating high levels of bothinfl uence and dependence, and therefore asubstantial impact on circular economyimplementation. In addition, logistics and supply chainbarriers, which were placed at the top level,were identifi ed as dependent variables withhigh dependence power. The findings of this study will be beneficial for stakeholders in the petrochemical supply chain in implementing a circular economy based on Industry 5.0. They will support managers in making moredecisive choices regarding the selection,implementation, and evaluation of projectsthat employ sustainability and circulareconomy approaches in the supply chain. Ultimately, the results of this study can serve as a foundation for future empirical research aimed at supporting the effective implementation of a circular economy and facilitating the transition from a linear to a circular supply chain.

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Supply Chain Management
Volume 27, Issue 88 - Serial Number 88
Serial number 88. Autumn 2025
November 2025
Pages 35-59

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  • Receive Date: 16 March 2025
  • Revise Date: 23 April 2025
  • Accept Date: 06 September 2025
  • Publish Date: 21 November 2025

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