Digitalization of manufacturing for implanting value, configuring circularity and achieving sustainability

Purpose - This paper explores the relationships between Industry 4.0-driven technologies and the circular economy-driven business model (CEDBM) components of value creation, delivery and capture along manufacturing processes. Design/methodology/approach - Based on the literature, a research model is developed in which the three CEBDM components are represented by five components: product service system (PSS), product design, industrial symbiosis (IS), consumer interaction and pay-per-use/rental. For each of these five components, enabling Industry 4.0 technologies are identified and vague interdependence relationships were assessed using a fuzzy decision-making trial and evaluation laboratory (DEMATEL) method. Findings - This paper contributes to the literature by exploring the relationships of the CEDBM components of value creation, value delivery and value capture with Industry 4.0-driven technological enablers. In addition, causal relationships between Industry 4.0 technologies and their relevance for facilitating CE-enabled manufacturing processes are identified, and finally, Industry 4.0-driven technological enablers of CE are categorized as base and front-end technologies. Research limitations/implications - The findings suggest that value delivery-based differentiation provides new avenues for value creation and innovative forms of value capture in CEDBMs. Practical implications - Practitioners can use the findings to develop a roadmap for Industry 4.0-driven technological solutions for CE. Social implications - CE-driven processes of manufacturing provide not only opportunities for value capture, creation and delivery but also avenues for customer-centric product and service development and effective resource utilization. Originality/value - This paper is the first to identify value creation, delivery and capture processes along with Industry 4.0-enabled manufacturing processes.