Leveraging digital data to facilitate circular control in the aftermarket – experiences from an international manufacturing firm

Leanne Johnstone

Sustainability Accounting, Management and Policy Journal, 2024, vol. 15, issue 4, 987-1014

Abstract: Purpose - Growing research attention has been given to both the circular economy and digitalisation in accounting research in recent years, but there are few studies exploring how digital tools are used to develop, analyse and respond to information for circular decision-making in industrial organisations. Therefore, this paper addresses how the data from digital technologies are leveraged in the aftermarket of an industrial firm for circular control. Design/methodology/approach - The paper develops an analytical framework that is then used to frame the findings through a single case study of an international heavy equipment manufacturer for circular control. Findings - The case provides examples of how digital technologies are used for circular control, framed within the analytical model as the key contribution. The study illustrates the different ways through which the accounting information from such technologies supports the service marketing function through circular control and the types of controls needed for this. Practical implications - Managers in large industrial organisations should ensure customer-facing staff have adequate digital competences and knowledge of circular products and services for marketing, product design improvements and material recovery that can help decrease costs and improve customer satisfaction. The digital systems need to be integrated with upstream and downstream partners. Social implications - Understanding the transition towards increasingly circular product-service systems in industrial firms is important for current and future generations. Originality/value - The originality lies in providing an empirical example of how digital technologies can be used to facilitate circular control and support the service marketing function in the aftermarket of an industrial firm.

Keywords: Circular economy; Decision-making; Digital technologies; Product-service systems; Sustainability control systems (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eme:sampjp:sampj-09-2023-0671

DOI: 10.1108/SAMPJ-09-2023-0671

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