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The purpose of this study is to identify how Procurement 4.0 and digital transformations are related and how digital transformation impacts the intention to optimize the procurement process in the circular economy. The moderating effect of information processing capability is also investigated. We survey South African manufacturers and analyze survey results using the Partial Least Squares Structural Equation Modelling (PLS-SEM) approach to test the research hypotheses and our theoretical framework. Finally, a sample business process is simulated to evaluate how Industry 4.0 automation can influence organizational procurement process optimization and circular economy performance. The findings of this empirical study indicate that Procurement 4.0 strategy positively influences buyers’ intention to optimize business processes. Second, Procurement 4.0 performance review positively influences buyers …