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Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda

Author

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  • Gianmarco Bressanelli

    (RISE Laboratory, Department of Mechanical and Industrial Engineering, University of Brescia, 25123 Brescia, Italy)

  • Federico Adrodegari

    (RISE Laboratory, Department of Mechanical and Industrial Engineering, University of Brescia, 25123 Brescia, Italy)

  • Daniela C. A. Pigosso

    (Section of Engineering Design and Product Development, Department of Mechanical Engineering, Technical University of Denmark, 2800 Kongens Lyngby, Denmark)

  • Vinit Parida

    (Department of Business Administration, Technology and Social Sciences, Lulea University of Technology, 97187 Lulea, Sweden
    Department of Business, History and Social Science, USN School of Business, University of South-Eastern Norway, 3679 Notodden, Norway)

Abstract

The digital age we live in offers companies many opportunities to jointly advance sustainability and competitiveness. New digital technologies can, in fact, support the incorporation of circular economy principles into businesses, enabling new business models and facilitating the redesign of products and value chains. Despite this considerable potential, the convergence between the circular economy and these technologies is still underinvestigated. By reviewing the literature, this paper aims to provide a definition and a conceptual framework, which systematize the smart circular economy paradigm as an industrial system that uses digital technologies during the product life-cycle phases to implement circular strategies and practices aimed at value creation. Following this conceptualization, the classical, underlying circular economy principle, ‘waste equals food’, is reshaped into an equation more fitting for the digital age—that is to say, ‘ waste + data = resource ’. Lastly, this paper provides promising research directions to further develop this field. To advance knowledge on the smart circular economy paradigm, researchers and practitioners are advised to: (i) develop research from exploratory and descriptive to confirmatory and prescriptive purposes, relying on a wide spectrum of research methodologies; (ii) move the focus from single organizations to the entire ecosystem and value chain of stakeholders; (iii) combine different enabling digital technologies to leverage their synergistic potential; and (iv) assess the environmental impact of digital technologies to prevent potential rebound effects.

Suggested Citation

  • Gianmarco Bressanelli & Federico Adrodegari & Daniela C. A. Pigosso & Vinit Parida, 2022. "Towards the Smart Circular Economy Paradigm: A Definition, Conceptualization, and Research Agenda," Sustainability, MDPI, vol. 14(9), pages 1-20, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:4960-:d:798232
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    3. Agnieszka A. Tubis & Katarzyna Grzybowska & Bartosz Król, 2023. "Supply Chain in the Digital Age: A Scientometric–Thematic Literature Review," Sustainability, MDPI, vol. 15(14), pages 1-25, July.
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    5. Govindan, Kannan, 2023. "How digitalization transforms the traditional circular economy to a smart circular economy for achieving SDGs and net zero," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 177(C).
    6. Ye Sang & Heeseung Yu & Eunkyoung Han, 2022. "Understanding the Barriers to Consumer Purchasing of Zero-Waste Products," Sustainability, MDPI, vol. 14(24), pages 1-20, December.
    7. Thayla Zomer & Tim McAloone & Daniela Pigosso, 2024. "Categorization of manufacturing companies’ readiness profiles for the transition to the circular economy: A multidimensional cluster analysis," Journal of Industrial Ecology, Yale University, vol. 28(2), pages 277-288, April.
    8. Sadia Samar Ali & Belkız Torğul & Turan Paksoy & Sunil Luthra & Yasanur Kayikci, 2024. "A novel hybrid decision‐making framework for measuring Industry 4.0‐driven circular economy performance for textile industry," Business Strategy and the Environment, Wiley Blackwell, vol. 33(8), pages 7825-7854, December.
    9. Salih Çevikarslan & Carsten Gelhard & Jörg Henseler, 2022. "Improving the Material and Financial Circularity of the Plastic Packaging Value Chain in The Netherlands: Challenges, Opportunities, and Implications," Sustainability, MDPI, vol. 14(12), pages 1-23, June.
    10. Alessandra Neri & Marta Negri & Enrico Cagno & Simone Franzò & Vikas Kumar & Tommaso Lampertico & Carlo Andrea Bassani, 2023. "The role of digital technologies in supporting the implementation of circular economy practices by industrial small and medium enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4693-4718, November.
    11. Sorin-Daniel GHEORGHE, 2023. "Internet of Things and Circular Economy: A State-of-the-Art Review," Informatica Economica, Academy of Economic Studies - Bucharest, Romania, vol. 27(4), pages 44-60.

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