Exploring How Digital Technologies Enable a Circular Economy of Products

Yafeng Han (), Tetiana Shevchenko, Bernard Yannou, Meisam Ranjbari, Zahra Shams Esfandabadi, Michael Saidani, Ghada Bouillass, Kseniia Bliumska-Danko and Guohou Li
Additional contact information
Yafeng Han: School of Information Engineering, Henan Institute of Science and Technology, Xinxiang 453003, China
Tetiana Shevchenko: Marketing and Logistics Department, Sumy National Agrarian University, 40000 Sumy, Ukraine
Bernard Yannou: Laboratoire Genie Industriel, CentraleSupélec, Université Paris-Saclay, 91190 Gif-sur-Yvette, France
Meisam Ranjbari: Department of Economics and Statistics “Cognetti de Martiis”, University of Turin, 10153 Turin, Italy
Zahra Shams Esfandabadi: Department of Management, University of Turin, 10134 Turin, Italy
Michael Saidani: Laboratoire Genie Industriel, CentraleSupélec, Université Paris-Saclay, 91190 Gif-sur-Yvette, France
Ghada Bouillass: Laboratoire Genie Industriel, CentraleSupélec, Université Paris-Saclay, 91190 Gif-sur-Yvette, France
Kseniia Bliumska-Danko: Marketing and Logistics Department, Sumy National Agrarian University, 40000 Sumy, Ukraine
Guohou Li: School of Information Engineering, Henan Institute of Science and Technology, Xinxiang 453003, China

Sustainability, 2023, vol. 15, issue 3, 1-20

Abstract: Recent studies have advocated that digital technologies (DTs) positively affect the transition of a linear economy model to a circular economy (CE) model and facilitate enterprises in implementing circular strategies. Despite this general statement, the literature still overlooks how enterprises should apply various DTs of Industry 4.0 across the entire product lifecycle to operationalize CE-related strategies. To fill this gap, this paper proposes a conceptual framework exploring DTs in terms of CE operationalization from the perspective of the product lifecycle. Based on insights gained through a systematic literature review, we clarify how DTs can facilitate CE performance objectives through the three stages of the product lifecycle: product design, product use, and product recovery or recycling. Furthermore, we study how various Industry 4.0 DTs, such as the Internet of things, big data, and cloud computing, are utilized to operationalize the transition toward a CE. DTs applied to the service-oriented product-service system contributes innovation into circular business models to make full use of idle resources and provide high-quality personalized services. We have adopted three performance objectives: using fewer materials and resources, extending product lifespan, and closing the loop to evaluate the effects of DTs in promoting CE development. By investigating how DTs affect CE performance objectives, the conceptual framework developed in this paper advances the knowledge regarding the role of DTs as an enabler of CE from the product lifecycle. Our findings provide a practical reference enabling researchers and managers to harness the potential of DTs to support CE transition.

Keywords: circular economy; circular business model; product-service system; Industry 4.0; sharing economy; Internet of things; big data; cloud computing; artificial intelligence (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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