Sustainable Digital Business Innovation: Integrating Circular Economy and Industry 4.0 Paradigms
DOI:
https://doi.org/10.58258/dibi.g06n1f79Keywords:
Circular Economy, Industry 4.0, Digital Business, Innovation, Artificial Intelligence (AI)Abstract
Sustainable Digital Business Innovation: Integrating Circular Economy and Industry 4.0 Paradigms. The modern global business landscape is undergoing an unprecedented and complex twin transition, driven by the rapid, disruptive development of Industry 4.0 technologies and the critical, existential need for sustainable Circular Economy (CE) models. As ecological crises deepen and resource scarcity threatens traditional linear economic models (take-make-dispose), organizations are compelled to innovate. Simultaneously, the digital revolution offers tools of unprecedented power. This comprehensive study conducts an in-depth Systematic Literature Review (SLR) to thoroughly explore the intersection of these two macro-paradigms and their profound impact on digital business innovation. Analyzing an extensive body of contemporary research, this paper meticulously identifies how advanced technologies—such as the Internet of Things (IoT), Big Data Analytics (BDA), Artificial Intelligence (AI), Blockchain, Digital Twins, and Cyber-Physical Systems (CPS)—act as fundamental catalysts for sustainable business model innovation. These technologies enable unprecedented resource efficiency, extended product lifecycles, closed-loop supply chains, and the dematerialization of value propositions through servitization. The expanded findings present a highly detailed conceptual framework mapping specific technological enablers to the 9R Circular Economy strategies (Refuse, Rethink, Reduce, Reuse, Repair, Refurbish, Remanufacture, Repurpose, Recycle, Recover). Furthermore, the study outlines the primary multidimensional barriers—organizational, financial, technological, and regulatory—inhibiting this integration. Ultimately, the study provides significant theoretical advancements and actionable practical contributions to guide managers, industry leaders, and policymakers in leveraging technology-enabled transformations to achieve resilient, sustainable competitive advantage in the 21st century.References
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