Integration of Circular Economy Practices into the WEF Nexus for Workforce Restructuring and Resource Sustainability: A Socio-Technical Approach

Abstract

There has been an increasing need to integrate circular economy practices into the WEF Nexus for resource management and sustainability. However, how these practices affect workforce restructuring has remained under-researched. This research leveraged the socio-technical systems theory to examine how circular economy practices influence workforce restructuring and the effect of this restructuring on operational efficiency, resource optimisation and sustainability. The study used a quantitative research design to gather data from 176 academics and professionals in the WEF sector. The data was analysed using principal component analysis and PLS-SEM. The findings reveal two classifications of circular economy practices (circular re-alignment and workforce optimisation) and three pathways for workforce restructuring. The study empirically proved that digitalisation alone does not significantly affect performance outcomes. It reveals that developing sustainability-focused skills and adaptable organisational cultures is more important in operational and resource efficiency. The study illustrates the importance of human-centred approaches in adopting the circular economy. It reveals that there is a need for organisations and policymakers to shift focus from solely technology adoption to human capital development and agile work cultures. The study recommended reskilling the workforce, creating inclusive labour policies, and developing flexible organisational models to achieve sustainability. This study operationalised the socio-technical system theory and added a human-centred approach to the existing circular economy and Water-Energy-Food studies by affirming human capital as a key driver of circular transformation.