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A framework for digital supply chains in the era of circular economy: Implications on environmental sustainability

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  • Ashish Dwivedi
  • Sanjoy Kumar Paul

Abstract

Increased attention to environmental sustainability has created pressures to adopt the circular economy (CE) principles. The transition toward CE requires system redesign and business process modification. Embracing disruptive technologies produces several benefits including improved productivity and resource utilization. Thus, organizations become eager to adopt and sustain digital supply chains (DSCs) in globally competitive markets. Additionally, the linkage between DSC with CE and the impact of DSC on organizational performances from the perspective of CE remain unexplored in previous studies. This study aims to develop a framework for DSC adoption from the perspective of CE. The present study recognizes the barriers through literature review and experts' opinions that must be eradicated to attain the objectives of DSCs. In this study, 19 potential barriers to DSCs were identified. A fuzzy best–worst method (BWM) was adopted to prioritize the identified barriers. Further, the study formulates strategies for integrating the CE with DSCs to overcome the barriers. A modified Total Interpretive Structure Model (m‐TISM) was developed to highlight the different levels of suggested strategies. This study contributes to the existing literature by analyzing the identified barriers to DSCs and suggesting overcoming strategies. The integrated methodology assists organizations to develop efficient and integrated strategic measures toward DSC adoption through the application of enhanced knowledge of CE and environmental sustainability. The findings reveal that the “lack of digital skills and facilities” is the most influential barrier in DSC development. Further, the findings indicate that financial and regulatory supports are the primary steps toward a digitalized economy.

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  • Ashish Dwivedi & Sanjoy Kumar Paul, 2022. "A framework for digital supply chains in the era of circular economy: Implications on environmental sustainability," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1249-1274, May.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:4:p:1249-1274
    DOI: 10.1002/bse.2953
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    2. Zhong, Ziqi & Zhao, Elena Yifei, 2024. "Collaborative driving mode of sustainable marketing and supply chain management supported by metaverse technology," LSE Research Online Documents on Economics 121160, London School of Economics and Political Science, LSE Library.
    3. Shuke Fu & Jiabei Liu & Jiali Tian & Jiachao Peng & Chuyue Wu, 2023. "Impact of Digital Economy on Energy Supply Chain Efficiency: Evidence from Chinese Energy Enterprises," Energies, MDPI, vol. 16(1), pages 1-21, January.
    4. Teresa Riso & Carla Morrone, 2023. "To Align Technological Advancement and Ethical Conduct: An Analysis of the Relationship between Digital Technologies and Sustainable Decision-Making Processes," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    5. Jiaoning Zhang & Xiaoyu Ma & Jiamin Liu, 2022. "How Can the Digital Economy and Human Capital Improve City Sustainability," Sustainability, MDPI, vol. 14(23), pages 1-18, November.
    6. Vimal K.E. K & Sivakumar K & Jayakrishna Kandasamy & Vaibhav Venkat & Raghuraman Srinivasan Mani, 2023. "Barriers to the adoption of digital technologies in a functional circular economy network," Operations Management Research, Springer, vol. 16(3), pages 1541-1561, September.
    7. Elisabete Nogueira & Sofia Gomes & João M. Lopes, 2022. "The Key to Sustainable Economic Development: A Triple Bottom Line Approach," Resources, MDPI, vol. 11(5), pages 1-18, May.
    8. Dhirendra Prajapati & Fuli Zhou & Ashish Dwivedi & Tripti Singh & Lakshay Lakshay & Saurabh Pratap, 2022. "Sustainable Agro-Food Supply Chain in E-Commerce: Towards the Circular Economy," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    9. Elif Baykal & Bahar Divrik, 2023. "Employee Involvement in Sustainability Projects in Emergent Markets: Evidence from Turkey," Sustainability, MDPI, vol. 15(18), pages 1-19, September.

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