A new era of mergers and acquisitions: towards synergy between Industry 4.0 and Circular Economy

<p>A new era of M&A is emerging, characterized by new wave of strategic investmentdecision-making practices (SIDMP) toward Industry 4.0 (I4.0) technologiesand circular economy. The digital technologies play a significant rolein circular economy transitions and companies’ performance This includesinvestment 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 environmentalconcerns. It unlocks new strategies and new ways of strategic thinking. Itsrapid expansion, as a new norm for companies, has characteristics of a fastexpandingmarket, given its exponential growth. Yet, there is a need to boardroomscommitment and responsibilities including oversight and support and afull-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 shouldgather information on environmental, social, and governance issues. Therefore,it is critical to prioritize their strategies and identify areas that present thegreatest risk on environmental and social issues including human rights, labor,and ethical issues in the companies supply chain. By creating shared valuesbetween society and shareholders, companies can maintain long-term success,legitimacy, and credibility. This chapter offers debate on recent developmentsin research and practice regarding SIDMP and synergy between I4.0 andcircular economy.</p>