Leveraging Big Data Analytics: AI for Circular Economy through Absorptive Capacity
DOI:
https://doi.org/10.32350/jarms.71.03Keywords:
absorptive capacity, BDA-AI, circular economy, dynamic capability theoryAbstract
This study builds a comprehensive investigation framework on how Big Data Analytics–Artificial Intelligence (BDA-AI) drives Circular Economy (CE) adoption through mediating into dynamic capability theory. The study argues that technology does not establish outcomes by itself; besides, outcomes develop from how technology is interpreted and adapted in social contexts. The current study contributes to existing literature by integrating BDA-AI with ACAP and circular innovation. The phenomenon is explored through the automobile industry of Pakistan. Empirical evidence supports the model of study for a complete mediation signifying an indirect value of 0.89 and a Cronbach’s alpha value of 0.787. Findings establish that, although technology investment is significantly related to circular economy practices adoption, the knowledge absorptive capacity enhancement cannot be ignored to achieve those outcomes. The study has used dynamic capability theory to support the hypothesis of the study.
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Copyright (c) 2026 Tasleem Malik, Marria Hassan
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