A Data-Driven Readiness Assessment Framework for Circular Economy and Industry 4.0 Adoption in Food and Beverage Small and Medium-Sized Industries in Developing Countries

Sustainable transformation within food and beverage (F&B) small and medium-sized industries (SMIs) in developing countries continues to be constrained by high levels of food loss and waste (FLW), inefficient resource utilization, limited technological capability, and weak organizational preparedness for digital and circular transition.Although the integration of Circular Economy (CE) principles and Industry 4.0 (I4.0) technologies has increasingly been recognized as a strategic pathway toward sustainable industrial development, limited empirical attention has been devoted to the assessment of organizational readiness for such transformation, particularly within resourceconstrained SMIs.In response to this gap, a data-driven readiness assessment framework was developed to evaluate the preparedness of F&B SMIs for CE and I4.0 adoption.Survey data obtained from 150 F&B SMIs were analysed through a method integrating Principal Component Analysis (PCA), CRITIC method, and the TOPSIS.PCA was employed to identify latent readiness dimensions and reduce indicator redundancy, while the CRITIC method was utilized to derive objective indicator weights based on contrast intensity and inter-criteria conflict.Subsequently, the TOPSIS was applied to calculate composite readiness scores and classify firms according to their readiness levels.Eleven readiness dimensions were identified, among which sustainable sourcing and circular procurement, environmental value internalization, and human-centric managerial capability were found to exert the strongest influence on readiness performance.The findings further revealed that most participating SMIs were positioned within the developing readiness category, indicating that sustainability-oriented and digital transformation practices have been initiated but remain insufficiently institutionalized and operationally integrated.The results suggest that readiness for CE and I4.0 adoption is shaped not solely by technological infrastructure, but also by organizational culture, strategic procurement practices, managerial orientation, and workforce-related capabilities.The proposed framework contributes to the sustainability and industrial transformation literature by providing a robust and transferable decision-support instrument capable of supporting evidence-based managerial interventions and policy formulation aimed at accelerating sustainable industrial transition within F&B SMIs in developing economies.