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Digital Technologies to Foster Business Model Innovation for Circular Economy

A special issue of Sustainability (ISSN 2071-1050). This special issue belongs to the section "Economic and Business Aspects of Sustainability".

Deadline for manuscript submissions: closed (30 June 2023) | Viewed by 9871

Special Issue Editors


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Guest Editor
Dipartimento di Meccanica, Matematica e Management, Politecnico di Bari, 70126 Bari, Italy
Interests: sustainable business process management; social and open innovation; circular economy
Special Issues, Collections and Topics in MDPI journals

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Guest Editor
Dipartimento di Meccanica, Matematica e Management, Politecnico di Bari, 70126 Bari, Italy
Interests: green innovation; corporate sustainability; green consumer behaviour

E-Mail Website
Guest Editor
Dipartimento di Meccanica, Matematica e Management, Politecnico di Bari, 70126 Bari, Italy
Interests: operations and supply chain management; project management; business sustainability
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

The so far adopted linear ‘take, make, dispose’ economic model relies on two main assumptions, namely: (i) the availability of unlimited (and possibly cheap) quantities of materials and energy and (ii) environmental and social costs managed as externalities. These assumptions represent the main limits of the linear economic model and are, to some extent, the reasons for the main problems (e.g., environmental disasters, climate change, and social inequalities) caused by its adoption. The problems have alerted to the necessity of rethinking the traditional economic model to take advantage of the benefits of a circular economy (CE)—an economy that is restorative and regenerative by design, seeks to ultimately decouple global economic development from finite resource consumption, generates growth, creates jobs, and reduces environmental impacts, including carbon emissions (Ellen MacArthur Foundation, 2014).

By promoting the adoption of closing-the-loop production and consumption patterns (through narrowing, slowing, closing and regenerating strategies) within an economic system, CE aims to increase the efficiency of resource use and reduce the waste and emission leakage out of any organization to achieve a better balance between economy, environment and society (Geissdoerfer et al., 2020; Ghisellini et al., 2016; Konietzko et al., 2020;)

Rethinking value creation in a circular perspective often requires the innovation of business models. The widespread adoption of sustainable and circular business models is indeed required to accelerate the transition to a more sustainable society. The literature supporting the process of business model innovation for circular economy (or the circular economy business model (CEBM)) is still in its infancy (Geissdoerfer et al., 2020; Santa-Maria et al., 2021). Yet, CEBM classifications and taxonomies have already been developed (e.g., Henry et al., 2020; Lewandowski, 2016, Lüdeke-Freund et al., 2019; Pieroni et al., 2020; Urbinati et al. 2017).

Some classifications involve business models (e.g., platform-based business models) based on digital technologies (DTs). CE has the potential to capitalize upon DTs such as big data, artificial intelligence (AI), blockchain and the Internet of things (IoT), amongst others.

DTs combined with business model innovation offer interesting and innovative solutions for the circular economy transformation (Chauhan et al., 2022; Ranta et al., 2021). To emphasize such aspects, some scholars (e.g., Kristoffersenet al., 2021; Magrini et al., 2021; Rosa et al., 2020) introduced the notion of digital circular economy (digital CE).

Digitalisation can boost the transformation by facilitating the closing of material loops (e.g., by providing accurate information on the availability, location and condition of products), enabling more efficient processes, minimising waste, promoting longer life for products, minimising transaction costs and increasing resource efficiency, supporting servitization, facilitating coordination among companies and collaboration with stakeholders (Antikainen et al., 2018; UNEP, na). Hence, DTs have the potential to dramatically influence social and environmental sustainable development (Bai et al., 2020; Ellen MacArthur Foundation, 2019).

This Special Issue intends to (i) explore challenges and opportunities offered by digital technologies in the context of business model innovations for circular economy; (ii) further investigate classifications, peculiarities, benefits and criticalities of digital circular business models; and to (iii) assess the potential of digital circular economy to implement the EU Industry 5.0 vision (https://ec.europa.eu/info/research-and-innovation/research-area/industrial-research-and-innovation/industry-50_en), both in developed and developing countries.

We encourage submissions of both theoretical and practical contributions.

Topics of interest include, but are not limited to:

  • Organizational and managerial challenges to develop digital circular business models;
  • Classification or taxonomies of digital circular business models;
  • Criticalities and benefits of DTs adoption in the CE context;
  • Coordination and collaboration models for digital circular economy;
  • Digital circular business models to achieve Sustainable Development Goals (SDGs);
  • Digital circular business models to foster EU Industry 5.0;
  • Digital circular business models to foster industrial symbiosis;
  • Digital circular business models that leverage on blockchain;
  • Digital circular business models to foster the development of sustainable innovations;
  • Environmental and social impact of digital circular business models;
  • Frameworks and tools to assess the environmental and social impact of digital circular business models.

Main References

Antikainen, M., Uusitalo, T., & Kivikytö-Reponen, P. (2018). Digitalisation as an Enabler of Circular Economy. Procedia CIRP,  73, pp. 45-49. https://doi.org/10.1016/j.procir.2018.04.027

Bai, C., Dallasega, P., Orzes, G., & Sarkis, J. (2020). Industry 4.0 technologies assessment: A sustainability perspective. International Journal of Production Economics, 229. https://doi.org/10.1016/j.ijpe.2020.107776

Chauhan, C., Parida, V., & Dhir, A. (2022). Linking circular economy and digitalisation technologies: A systematic literature review of past achievements and future promises. Technological Forecasting and Social Change, 177. https://doi.org/10.1016/j.techfore.2022.121508

Ellen MacArthur Foundation. (2014). Towards the Circular Economy: Vol. 1: Economic and business rationale for an accelerated transition. Url: https://emf.thirdlight.com/link/x8ay372a3r11-k6775n/@/preview/1?o (last access: June 6, 2022)

Ellen MacArthur Foundation. (2019). Artificial Intelligence and the Circular Economy: Ai As a Tool To Accelerate the transition. url:  https://emf.thirdlight.com/link/dl06eujbcbet-wx40o7/@/preview/1?o (last access: June 6. 2022)

Geissdoerfer, M., Pieroni, M. P., Pigosso, D. C., & Soufani, K. (2020). Circular business models: A review, Journal of Cleaner Production, 277, 123741.

Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: The expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production. https://doi.org/10.1016/j.jclepro.2015.09.007

Henry, M., Bauwens, T., Hekkert, M., & Kirchherr, J. (2020). A typology of circular start-ups: An Analysis of 128 circular business models. Journal of Cleaner Production245, 118528.

Konietzko, J., Baldassarre, B., Brown, P., Bocken, N., Hultink, E. J. (2020). Circular business model experimentation: Demystifying assumptions. Journal of Cleaner Production277, 122596, doi.org/10.1016/j.jclepro.2020.122596.

Kristoffersen, E., Blomsma, F., Mikalef, P., & Li, J. (2020). The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies. Journal of Business Research, 120. https://doi.org/10.1016/j.jbusres.2020.07.044

Kristoffersen, E., Mikalef, P., Blomsma, F., & Li, J. (2021). The effects of business analytics capability on circular economy implementation, resource orchestration capability, and firm performance. International Journal of Production Economics, 239. https://doi.org/10.1016/j.ijpe.2021.108205

Lewandowski, M., 2016. Designing the business models for circular economydtowards the conceptual framework. Sustainability 8 (1), 43. http://www.mdpi. com/2071-1050/8/1/43

Lüdeke-Freund, F., Stefan, G., Bocken, N.M.P., 2019. A review and typology of circular economy business model patterns. Journal of Industial Ecology 23 (1), 36e61. https://doi.org/ 10.1111/jiec.12763.

Magrini, Chiara, Jana Nicolas, Holger Berg, Alberto Bellini, Enrico Paolini, Nazarena Vincenti, Luca Campadello, and Alessandra Bonoli. 2021. "Using Internet of Things and Distributed Ledger Technology for Digital Circular Economy Enablement: The Case of Electronic Equipment" Sustainability 13, no. 9: 4982. https://doi.org/10.3390/su13094982

Pieroni, M. P., McAloone, T. C., & Pigosso, D. C. (2020). From theory to practice: systematising and testing business model archetypes for circular economy.  Resources, Conservation and Recycling, 162, 105029.

Ranta, V., Aarikka-Stenroos, L., Väisänen, J. M. (2021). Digital technologies catalyzing business model innovation for circular economy—Multiple case study. Resources, Conservation and Recycling, 164.

Rosa, P., Sassanelli, C., Urbinati, A., Chiaroni, D., & Terzi, S. (2020). Assessing relations between Circular Economy and Industry 4.0: a systematic literature review. International Journal of Production Research, 58(6). https://doi.org/10.1080/00207543.2019.1680896

Santa-Maria, T., Vermeulen, W. J. V., & Baumgartner, R. J. (2021). Framing and assessing the emergent field of business model innovation for the circular economy: A combined literature review and multiple case study approach. Sustainable Production and Consumption, 26. https://doi.org/10.1016/j.spc.2020.12.037

UNEP, na. The role of product service systems in a sustainable society https://www.unep.org/resources/report/role-product-service-systems-sustainable-society

Urbinati, A., Chiaroni, D., Chiesa, V., 2017. Towards a new taxonomy of circular economy business models. Jornal of Cleaner Production, 168, 487e498. https://doi.org/10.1016/ j.jclepro.2017.09.047.

Dr. Barbara Scozzi
Dr. Rosa Maria Dangelico
Prof. Dr. Pierpaolo Pontrandolfo
Guest Editors

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Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2400 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • circular economy
  • digital technologies
  • Industry 5.0
  • business model
  • digital circular economy

Published Papers (3 papers)

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Research

24 pages, 2225 KiB  
Article
Developing a Circular Business Model for Machinery Life Cycle Extension by Exploiting Tools for Digitalization
by Federica Cappelletti and Silvia Menato
Sustainability 2023, 15(21), 15500; https://doi.org/10.3390/su152115500 - 31 Oct 2023
Viewed by 825
Abstract
Digitalization technologies have been identified as enablers for the adoption of circular economy practices. The machinery-value chain addressed in this study is affected by the introduction of digital technologies that enable real-time monitoring of data on product condition and control optimization, the deployment [...] Read more.
Digitalization technologies have been identified as enablers for the adoption of circular economy practices. The machinery-value chain addressed in this study is affected by the introduction of digital technologies that enable real-time monitoring of data on product condition and control optimization, the deployment of predictive analytics techniques, as well as offering circular-based services. Machinery-lifetime extension can be digitally enabled on both old and new machines. The research objectives were to investigate how digital technologies enable the adoption of circular economy-based business models by manufacturing companies and provide answers regarding (i) which Life Cycle Extension Strategy is suitable for digital circular-business model adoption and (ii) how digitalization of machines enables manufacturing companies to innovate their business models. The correlation matrix is the tool developed from the proposed approach and it aims to support manufacturers in their first contact with circular business models. In the European RECLAIM project context, two manufacturers have applied the approach. The next steps are expected to introduce quantitative indicators to define thresholds for the steps toward circularity without replacing the qualitative approach, as this guarantees its applicability in a context that has never considered circularity yet. Full article
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26 pages, 663 KiB  
Article
Structuring and Measuring Environmental Sustainability in the Steel Sector: A Single Case Study
by Laura Tolettini and Eleonora Di Maria
Sustainability 2023, 15(7), 6272; https://doi.org/10.3390/su15076272 - 06 Apr 2023
Cited by 2 | Viewed by 2355
Abstract
Climate change policies are affecting the economic and structural viability of European Union (EU) industries, particularly in the energy-intensive sector, with very challenging goals of EU Agenda 2030 in terms of CO2 reductions and energy efficiency. This ecological transition can be supported [...] Read more.
Climate change policies are affecting the economic and structural viability of European Union (EU) industries, particularly in the energy-intensive sector, with very challenging goals of EU Agenda 2030 in terms of CO2 reductions and energy efficiency. This ecological transition can be supported by the employment of innovative technologies, enabling production process efficiency, resource optimization and supply-chain integration. Nevertheless, it is still empirically unclear how energy-intensive industries will complete their ecological transition successfully, especially in terms of achieving environmental sustainability practices within the organization and in the supply-chain without endangering their economic availability. Moreover, the assessment of environmental sustainability performance is still not a unique standard framework, causing loss of transparency and traceability towards internal and external stakeholders, such as managers, investors and business partners. With 20 qualitative interviews of customers and experts of a company leader in the steel construction sector in Italy and Germany, the Feralpi Group, this paper explores the implications of strategic environmental sustainability indicators, which can transparently assess company performance. Preliminary results underline how shared standardized indicators are fundamental for a tighter supply-chain integration, giving impulse and significance to the steel producers’ efforts for environmental sustainability excellence. Future research should further investigate the connection between environmental sustainability strategies and performance indicators for a more integrated sustainability framework. Full article
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19 pages, 814 KiB  
Article
Barriers to Sustainable Digital Transformation in Micro-, Small-, and Medium-Sized Enterprises
by Ramona Rupeika-Apoga and Kristine Petrovska
Sustainability 2022, 14(20), 13558; https://doi.org/10.3390/su142013558 - 20 Oct 2022
Cited by 21 | Viewed by 5833
Abstract
Digital transformation empowers micro-, small-, and medium-sized enterprises (MSMEs) to rethink the way they make decisions and apply technology in meaningful and sustainable ways. The aim of this study is to investigate the main barriers to MSMEs’ sustainable digital transformation, given their global [...] Read more.
Digital transformation empowers micro-, small-, and medium-sized enterprises (MSMEs) to rethink the way they make decisions and apply technology in meaningful and sustainable ways. The aim of this study is to investigate the main barriers to MSMEs’ sustainable digital transformation, given their global importance and function as the backbone of any economy. We apply the concept of sustainable digital transformation (SDT), which refers to the process of digitalizing the economy in a long-lasting, green, and organic way by building on its key strength: innovative companies and their business ecosystems. The study is based on a representative survey of 425 Latvian MSMEs, which was conducted in the spring of 2021. We combine a survey of MSMEs with a qualitative comparative analysis. Our study identified seven barriers to sustainable digital transformation for MSMEs, which can be classified into three levels of importance. We found that the most important barriers to MSMEs are IT security issues and the shortage of specialists in the external labor market. Furthermore, we discovered that some barriers differ depending on company attributes, such as the number of employees, revenue, and the ability to implement digital transformation independently. However, the barriers were evaluated similarly by company owners and managers. These findings can help MSMEs’ managers and owners, policymakers, and practitioners understand which barriers are impeding MSMEs’ sustainable digital transformation. Full article
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