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Blockchain for the circular economy: Theorizing blockchain's role in the transition to a circular economy through an empirical investigation

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  • Moritz Böhmecke‐Schwafert
  • Marie Wehinger
  • Robin Teigland

Abstract

Blockchain is increasingly lauded as an enabler of the transition to a circular economy. While there is considerable conceptual research and some empirical studies on this phenomenon, scholars have yet to develop a theoretical model of blockchain's role in this transition. Grounded in the sustainability transition literature, this paper addresses this gap through the following research question: What role does blockchain play in the transition to a circular economy? Following an abductive approach, we conducted interviews with ground‐level experts implementing blockchain innovations for the circular economy across Europe and the United States. Through a thematic analysis, we derived a theoretical model of the relationships among (1) drivers and barriers of the transition to a circular economy, (2) blockchain innovation for the circular economy, (3) technical challenges of blockchain, and (4) the circular economy. While blockchain plays a moderating role, interviewees considered it only an infrastructural resource rather than a panacea.

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  • Moritz Böhmecke‐Schwafert & Marie Wehinger & Robin Teigland, 2022. "Blockchain for the circular economy: Theorizing blockchain's role in the transition to a circular economy through an empirical investigation," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3786-3801, December.
    • Handle: RePEc:bla:bstrat:v:31:y:2022:i:8:p:3786-3801
    DOI: 10.1002/bse.3032
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    2. Gnekpe, Christian & Plantec, Quentin, 2023. "Regulatory push-pull and technological knowledge dynamics of circular economy innovation," Technological Forecasting and Social Change, Elsevier, vol. 196(C).
    3. Shahzad, Khuram & Zhang, Qingyu & Ashfaq, Muhammad & Zafar, Abaid Ullah & Ahmad, Bilal, 2024. "Pre- to post-adoption of blockchain technology in supply chain management: Influencing factors and the role of firm size," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    4. Böhmecke-Schwafert, Moritz & García Moreno, Eduardo, 2023. "Exploring blockchain-based innovations for economic and sustainable development in the global south: A mixed-method approach based on web mining and topic modeling," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    5. Ivan Dimitrov & Rusen Gigov & Adile Dimitrova, 2022. "Leading factors for blockchain technology implementation in the business organisations in the Bulgarian context," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 10(2), pages 255-273, December.
    6. Abdullah Kaid Al‐Swidi & Joseph F. Hair & Mohammed A. Al‐Hakimi, 2023. "Sustainable development‐oriented regulatory and competitive pressures to shift toward a circular economy: The role of environmental orientation and Industry 4.0 technologies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4782-4797, November.
    7. Jefferson Leandro Schmidt & Simone Sehnem & Juliano Danilo Spuldaro, 2024. "Blockchain and the transition to the circular economy: A literature review," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 2010-2032, May.
    8. Giulio Caldarelli, 2023. "Investigating Assumptions and Proposals for Blockchain Integration in the Circular Economy. A Delphi Study," Papers 2312.13774, arXiv.org, revised Jun 2024.
    9. Abderahman Rejeb & Karim Rejeb & Suhaiza Zailani & Yasanur Kayikci & John G. Keogh, 2023. "Examining Knowledge Diffusion in the Circular Economy Domain: a Main Path Analysis," Circular Economy and Sustainability, Springer, vol. 3(1), pages 125-166, March.
    10. Yu Gong & Hengyi Zhang & Tom Morris & Chen Zhang & Mohammed Alharithi, 2024. "Waste Cooking Oil Recycling and the Potential Use of Blockchain Technology in the UK," Sustainability, MDPI, vol. 16(14), pages 1-27, July.
    11. Truant, Elisa & Giordino, Daniele & Borlatto, Edoardo & Bhatia, Meena, 2024. "Drivers and barriers of smart technologies for circular economy: Leveraging smart circular economy implementation to nurture companies' performance," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    12. Yasanur Kayikci & Nazlican Gozacan‐Chase & Abderahman Rejeb & Kaliyan Mathiyazhagan, 2022. "Critical success factors for implementing blockchain‐based circular supply chain," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3595-3615, November.
    13. Chunguang April Bai & James Cordeiro & Joseph Sarkis, 2022. "Blockchain for the environmentally sustainable enterprise," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3689-3692, December.
    14. Xiaoli Guo & Weili Xia & Taiwen Feng & Jianyu Tan & Fenggang Xian, 2024. "Blockchain technology adoption and sustainable supply chain finance: The perspective of information processing theory," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(4), pages 3614-3632, July.
    15. Komulainen, Ruey & Nätti, Satu, 2023. "Barriers to blockchain adoption: Empirical observations from securities services value network," Journal of Business Research, Elsevier, vol. 159(C).
    16. Aurélien Bruel & Radu Godina, 2023. "A Smart Contract Architecture Framework for Successful Industrial Symbiosis Applications Using Blockchain Technology," Sustainability, MDPI, vol. 15(7), pages 1-18, March.
    17. Zuobin Ying & Wusong Lan & Chen Deng & Lu Liu & Ximeng Liu, 2023. "DVIT—A Decentralized Virtual Items Trading Forum with Reputation System," Mathematics, MDPI, vol. 11(2), pages 1-23, January.

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