The relationship between digital technologies and the circular economy: a systematic literature review and a research agenda

Abstract

Digital technologies are widely recognised as crucial for promoting the circular economy in industry. However, there still needs for clearer guidance for industrial practitioners on properly using digital technologies to support the implementation of the circular economy. Further efforts are needed to characterise such a relationship better. This work conducts a systematic literature review aimed at understanding the nature and scope of the relationship by examining current knowledge at the intersection of the two domains, i.e. digital technologies and the circular economy. Specifically, the analysis focuses on identifying moderators and mediators of this relationship. About the former, the study discusses the relevance of management commitment, competencies, stakeholders and contextual factors; concerning the latter, the study discusses the relevance of supply chain integration and collaboration and examines in more detail the role of digital‐enabled dynamic capabilities, given their promising relevance in the current debate. Based on the review, a research agenda is proposed with suggestions for future research directions on the relationship between digital technologies and the circular economy.