Digitalization and its role in the development of circular economy business models

Abstract

In the pursuit of sustainable development, the circular economy emerges as a crucial paradigm, and this article delves into the interplay between digitization and the evolution of circular business models. The primary objective is to dissect and clarify the fundamental role played by digitalization in propelling the growth and cultivation of circular economy business models. Through a meticulous and comprehensive analysis, we aim to illustrate how digital technologies actively contribute to optimizing processes, fostering innovation, and enhancing the sustainability of circular practices. These digital interventions, we argue, have far-reaching positive impacts on both economic and environmental aspects. The research methodology employed in this article encompasses a thorough literature review, providing insights into the shared perspectives and discrepancies among various researchers in this domain. Additionally, our approach involves an in-depth analysis of statistical indicators designed to quantify and substantiate the influence of digitization on the development of circular economy business models. By amalgamating theoretical insights with empirical evidence, we seek to provide a robust foundation for understanding the intricate relationship between digitalization and circular economic practices. The outcomes of our investigation not only contribute valuable insights to the current discourse but also pave the way for future research endeavors. Building on the results of this study, we outline potential avenues for further exploration, addressing aspects that warrant deeper investigation within the context of the overarching theme. This forward-looking perspective aims to inspire and guide future research initiatives, fostering an ongoing dialogue on the dynamic intersection of digitization and the circular economy.