Open Access
Article
SciPap-2589
A Strategic Framework for Sustainable Manufacturing: Human Capital and Digital Circular Economy Models
1 Institute of Business Management, GLA University, 17km Stone, NH-19, Delhi-Mathura Road P.O. Chaumuhan,, Mathura 281 406, India
2 Department of Management Studies, Kumaun University, Sleepy Hollow, Nainital, Nainital 263001, India
3 University of Portsmouth, University of Portsmouth, Mercantlie Building, Portsmouth PO1 2EG, United Kingdom of Great Britain and Northern Ireland
4 Faculty of Business Administration, Nguyen Tat Thanh University, Ward 13, District 4, Ho Chi Minh City 1900239-429, Viet Nam
* Authors to whom correspondence should be addressed.
Abstract: This study presents an empirical investigation into how the strategic convergence of human capital and digital circular economy (DCE) practices enhances sustainability in manufacturing industries across emerging economies. Drawing on survey data from 273 respondents across seven developing countries, the research applies Partial Least Squares Structural Equation Modeling (PLS-SEM) to explore relationships among green HRM practices, DCE adoption, and multidimensional sustainability outcomes. Findings reveal that strategic HRM elements, such as digital upskilling, sustainability-oriented leadership, and an innovation-driven culture, significantly boost DCE implementation. Furthermore, DCE serves as a critical mediating mechanism, transforming human capital investment into measurable gains in economic, environmental, and social performance. Grounded in the Resource-Based View (RBV), Institutional Theory, and Circular Economy principles, the study proposes an integrative framework that captures both internal capabilities and external institutional pressures influencing sustainability. It also identifies contextual and regulatory factors as key moderators in these relationships. The study fills a crucial gap in the literature by empirically validating the synergistic impact of human capital and circularity on sustainable manufacturing. In practice, it offers valuable insights for policymakers and industry leaders seeking to embed circular economy principles through strategic HRM. Future research should explore longitudinal and cross-regional perspectives to deepen understanding of sustainable industrial transformation.
Keywords: Manufacturing Industry, Human Capital, Sustainable Business Models, Digital Circular Economy
JEL classification: A10 - General
Received: 25 June 2026 / Revised: 24 October 2026 / Accepted: 4 November 2026 / Published: 11 November 2026
