Building manufacturing firms’ digital technological capabilities for circular economy outcomes in developing and emerging economies

Jahan Ara Peerally, Fernando Santiago, Sedigheh Moghavvemi and Emma Tambou Marianna

Chapter 7 in Building Digital Technological Capabilities, 2025, pp 167-217 from Edward Elgar Publishing

Abstract: In this chapter, we conceptually explore the notion of circular economy (CE) concerning the twin transition towards digitalisation and greening of the economy by manufacturing firms. We propose that developing and emerging economies manufacturing firms need to build appropriate digital technological capabilities (DTCs) and then ascertain the CE outcomes that can be derived from them. Through a systematic literature review, we extend the DTC building framework by Peerally et al. (2022) by ascertaining which manufacturing-based DTCs can be associated with CE outcomes. We find that many CE outcomes are still conceptual. Moreover, some firm DTCs and CE outcomes are transversal, and others are task or operation-specific. We anticipate that firms will either actively choose to have a large-scale impact on the CE by following a transversal approach within the firm and across the supply chain or have a small-scale, passive, or active CE outcome by implementing or targeting task or operation-specific DTCs. We conclude with a discussion on the role of lead global value chain firms in advancing DTCs in developing and emerging economies and the role of governments and their public policies in shaping the appropriate national innovation system for this twin transition.

Keywords: Digital technological capability; Circular economy; Emerging economies; Manufacturing firms; Systematic literature review; Innovation system (search for similar items in EconPapers)
Date: 2025
ISBN: 9781803922355
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