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Circular economy readiness and digital solutions: redefining urban sustainability through human-centered technological advancements

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  • Mehmood, Khalid
  • Kautish, Pradeep
  • Sithipolvanichgul, Juthamon
  • Gupta, Pragya

Abstract

The fast-paced industrial growth has driven migration to urban areas, resulting in cities worldwide facing monumental challenges in achieving sustainability and resource efficiency. These include overcrowding, ineffective governance, and poor urban planning that have increased pollution, inefficient waste management, and overexploitation of natural resources, further intensifying environmental degradation. Drawing on the resource-based view theory, this study examines the role of eco-product and eco-process innovation in enhancing circular economy readiness and urban sustainability while analyzing how sustainable entrepreneurship moderates this relationship. Using Hayes' PROCESS macro for data analysis, the study unveils that eco-product and eco-process innovation significantly contributes to circular economy readiness, helping businesses and urban systems reduce waste, conserve resources, and transition to more sustainable production methods. Furthermore, the findings confirm that circular economy readiness bridges eco-innovation and urban sustainability, and sustainable entrepreneurship strengthens this connection, fostering long-term environmental and economic benefits. From a policy perspective, the study highlights the need for stronger governance frameworks, incentives for businesses adopting eco-friendly innovations, and investment in circular infrastructure. Eco-innovation and circular economy adoption can be fostered by aligning national policies with sustainable development goals (SDGs), in particular SDG 9 (Industry, Innovation, and Infrastructure) and SDG 11 (Sustainable Cities and Communities), thus promoting sustainable and resilient urban development.

Suggested Citation

  • Mehmood, Khalid & Kautish, Pradeep & Sithipolvanichgul, Juthamon & Gupta, Pragya, 2025. "Circular economy readiness and digital solutions: redefining urban sustainability through human-centered technological advancements," Technological Forecasting and Social Change, Elsevier, vol. 219(C).
    • Handle: RePEc:eee:tefoso:v:219:y:2025:i:c:s0040162525002732
    DOI: 10.1016/j.techfore.2025.124242
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