Digital technology and circular economy practices: future of supply chains

Syed Abdul Rehman Khan (), Arsalan Zahid Piprani () and Zhang Yu ()
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Syed Abdul Rehman Khan: Xuzhou University of Technology
Arsalan Zahid Piprani: Federal Urdu University of Arts
Zhang Yu: Chang’an University

Operations Management Research, 2022, vol. 15, issue 3, No 5, 676-688

Abstract: Abstract Conversations on digital technologies and their use in a circular economy (CE) have proliferated in recent years. The ability to fully use circular resources has become possible with the development of advanced and digital manufacturing technologies. However, there is currently only a limited amount of research that looks at the impact of digital technology on the establishment of a circular economy in a supply-chain context. This study seeks to examine the effect of technological innovation on CE practises, intending to assess their relationship to environmental and economic performance. The authors developed a conceptual framework based on the comprehensive literature review and employed a quantitative method to evaluate the theoretical framework. This research uses survey data of 290 respondents from the small and medium enterprises (SMEs) located in China and Pakistan to explore a model that explains the link between technological innovation, CE practices and performance. The SMART PLS 3.3.3 version was utilized for data analysis. The test findings reveal that technological innovation is positively associated with CE practices and that leads to economic and environmental performance. The findings may assist policymakers and business professionals in taking the appropriate steps to successfully implement and operate circular economy practices. With this connection, this research emphasized that SMEs should integrate their CE practices with digital technology solutions to attain long-term financial and environmental goals.

Keywords: Digital technology; Circular economy practices; Ecological design; Green purchasing; Sustainable performance (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (13)

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DOI: 10.1007/s12063-021-00247-3

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