A New Era of Mergers and Acquisitions: Towards Synergy between Industry 4.0 and Circular Economy

Abstract

A new era of M&A is emerging, characterized by new wave of strategic investment decision-making practices (SIDMP) toward Industry 4.0 (I4.0) technologies and circular economy. The digital technologies play a significant role in circular economy transitions and companies’ performance This includes investment in capability development, vertical and horizontal integration, effective procurement practices, and effective strategic control mechanisms. The circular economy strategy is more than just recycling and environmental concerns. It unlocks new strategies and new ways of strategic thinking. Its rapid expansion, as a new norm for companies, has characteristics of a fast-expanding market, given its exponential growth. Yet, there is a need to boardrooms commitment and responsibilities including oversight and support and a full-integrated organizational structure, sales, logistics, marketing, production, development, design, supply management, finance, human resources, and legal. To achieve successful implementation of SIDMP and M&A, companies should gather information on environmental, social, and governance issues. Therefore, it is critical to prioritize their strategies and identify areas that present the greatest risk on environmental and social issues including human rights, labor, and ethical issues in the companies supply chain. By creating shared values between society and shareholders, companies can maintain long-term success, legitimacy, and credibility. This chapter offers debate on recent developments in research and practice regarding SIDMP and synergy between I4.0 and circular economy.

Citation

Alkaraan, F. (2022), "A New Era of Mergers and Acquisitions: Towards Synergy between Industry 4.0 and Circular Economy", Finkelstein, S. and Cooper, C.L. (Ed.) Advances in Mergers and Acquisitions (Advances in Mergers and Acquisitions, Vol. 21), Emerald Publishing Limited, Leeds, pp. 51-61. https://doi.org/10.1108/S1479-361X20220000021004