IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v15y2023i21p15500-d1271861.html
   My bibliography  Save this article

Developing a Circular Business Model for Machinery Life Cycle Extension by Exploiting Tools for Digitalization

Author

Listed:
  • Federica Cappelletti

    (Dipartimento di Ingegneria e Scienze Matematiche, Università Politecnica delle Marche, 60121 Ancona, Italy)

  • Silvia Menato

    (Dipartimento di Tecnologie Innovative, Scuola Universitaria Professionale della Svizzera Italiana, Polo Universitario Lugano—Campus Est, 6962 Lugano, Switzerland)

Abstract

Digitalization technologies have been identified as enablers for the adoption of circular economy practices. The machinery-value chain addressed in this study is affected by the introduction of digital technologies that enable real-time monitoring of data on product condition and control optimization, the deployment of predictive analytics techniques, as well as offering circular-based services. Machinery-lifetime extension can be digitally enabled on both old and new machines. The research objectives were to investigate how digital technologies enable the adoption of circular economy-based business models by manufacturing companies and provide answers regarding (i) which Life Cycle Extension Strategy is suitable for digital circular-business model adoption and (ii) how digitalization of machines enables manufacturing companies to innovate their business models. The correlation matrix is the tool developed from the proposed approach and it aims to support manufacturers in their first contact with circular business models. In the European RECLAIM project context, two manufacturers have applied the approach. The next steps are expected to introduce quantitative indicators to define thresholds for the steps toward circularity without replacing the qualitative approach, as this guarantees its applicability in a context that has never considered circularity yet.

Suggested Citation

  • Federica Cappelletti & Silvia Menato, 2023. "Developing a Circular Business Model for Machinery Life Cycle Extension by Exploiting Tools for Digitalization," Sustainability, MDPI, vol. 15(21), pages 1-24, October.
    • Handle: RePEc:gam:jsusta:v:15:y:2023:i:21:p:15500-:d:1271861
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/15/21/15500/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/15/21/15500/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Schiavone, Francesco & Leone, Daniele & Caporuscio, Andrea & Lan, Sai, 2022. "Digital servitization and new sustainable configurations of manufacturing systems," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    2. Ghosh, Swapan & Hughes, Mat & Hodgkinson, Ian & Hughes, Paul, 2022. "Digital transformation of industrial businesses: A dynamic capability approach," Technovation, Elsevier, vol. 113(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kumar, Mukesh & Raut, Rakesh D. & Mangla, Sachin Kumar & Chowdhury, Soumyadeb & Choubey, Vikas Kumar, 2024. "Moderating ESG compliance between industry 4.0 and green practices with green servitization: Examining its impact on green supply chain performance," Technovation, Elsevier, vol. 129(C).
    2. Tianchu Feng & Andrea Appolloni & Jiayu Chen, 2024. "How does corporate digital transformation affect carbon productivity? Evidence from Chinese listed companies," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(12), pages 31425-31445, December.
    3. T. A. Alka & Aswathy Sreenivasan & M. Suresh, 2025. "Entrepreneurial strategies for sustainable growth: a deep dive into cloud-native technology and its applications," Future Business Journal, Springer, vol. 11(1), pages 1-23, December.
    4. Moustafa Elnadi & Yasser Omar Abdallah, 2024. "Industry 4.0: critical investigations and synthesis of key findings," Management Review Quarterly, Springer, vol. 74(2), pages 711-744, June.
    5. Yongjie Feng & Zenglian Zhang & Jingxian Zhang, 2024. "Navigating the Digital Transformation Terrain: Insights into the Interplay of Compensation, Incentives, and Managerial Behavior," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(4), pages 16799-16848, December.
    6. Broccardo, Laura & Zicari, Adrián & Jabeen, Fauzia & Bhatti, Zeeshan A., 2023. "How digitalization supports a sustainable business model: A literature review," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    7. Pingkuo Liu & Jiahao Wu, 2023. "Game Analysis on Energy Enterprises’ Digital Transformation—Strategic Simulation for Guiding Role, Leading Role and Following Role," Sustainability, MDPI, vol. 15(13), pages 1-33, June.
    8. Jifei Xie & Lulu Ma & Jiamin Li, 2023. "Servitization, Digitalization or Hand in Hand: A Study on the Sustainable Development Path of Manufacturing Enterprises," Sustainability, MDPI, vol. 15(13), pages 1-17, July.
    9. Daliborka Witschel & Julian Marius Müller & Kai-Ingo Voigt, 2023. "What Takes the Wind out of Their Sails? A Micro-Foundational Perspective of Challenges for Building Dynamic Capabilities Towards Digital Business Model Innovation," Schmalenbach Journal of Business Research, Springer, vol. 75(3), pages 345-388, September.
    10. Inam ul Haq & Sofia Anwar & Abdul Quddoos & Faraz Riaz, 2022. "Estimation of Digital Transformation in South Asian Economies: An Application of Broad-Spectrum Approach," Journal of Economic Impact, Science Impact Publishers, vol. 4(3), pages 152-160.
    11. Suo, Xuekun & Zhang, Longting & Guo, Rong & Lin, Han & Yu, Mingchuan & Du, Xiuhong, 2024. "The inverted U-shaped association between digital economy and corporate total factor productivity: A knowledge-based perspective," Technological Forecasting and Social Change, Elsevier, vol. 203(C).
    12. Zhao, Shuang & Zhang, Liqun & Peng, Lin & Zhou, Haiyan & Hu, Feng, 2024. "Enterprise pollution reduction through digital transformation? Evidence from Chinese manufacturing enterprises," Technology in Society, Elsevier, vol. 77(C).
    13. Limin Zou & Wan Li & Hongyi Wu & Jiawen Liu & Peng Gao, 2024. "Measuring Corporate Digital Transformation: Methodology, Indicators and Applications," Sustainability, MDPI, vol. 16(10), pages 1-15, May.
    14. Herbert Jodlbauer & Manuel Brunner & Nadine Bachmann & Shailesh Tripathi & Matthias Thürer, 2023. "Supply Chain Management: A Structured Narrative Review of Current Challenges and Recommendations for Action," Logistics, MDPI, vol. 7(4), pages 1-19, October.
    15. James, Steffan & Liu, Zheng & Stephens, Victoria & White, Gareth R.T., 2022. "Innovation in crisis: The role of ‘exaptive relations’ for medical device development in response to COVID-19," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    16. Pinto, Marcelo Rezende & Salume, Paula Karina & Barbosa, Marcelo Werneck & de Sousa, Paulo Renato, 2023. "The path to digital maturity: A cluster analysis of the retail industry in an emerging economy," Technology in Society, Elsevier, vol. 72(C).
    17. Navarro-García, Antonio & Ledesma-Chaves, Pablo & Gil-Cordero, Eloy & De-Juan-Vigaray, María Dolores, 2024. "Intangible resources, static and dynamic capabilities and perceived competitive advantage in exporting firms. A PLS-SEM/fsQCA approach," Technological Forecasting and Social Change, Elsevier, vol. 198(C).
    18. Maha Shehadeh & Ahmad Almohtaseb & Jehad Aldehayyat & Ibrahim A. Abu-AlSondos, 2023. "Digital Transformation and Competitive Advantage in the Service Sector: A Moderated-Mediation Model," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    19. Ravi Shankar & Laxmi Gupta, 2024. "Modelling risks in transition from Industry 4.0 to Industry 5.0," Annals of Operations Research, Springer, vol. 342(2), pages 1275-1320, November.
    20. Santarsiero, Francesco & Schiuma, Giovanni & Carlucci, Daniela & Helander, Nina, 2023. "Digital transformation in healthcare organisations: The role of innovation labs," Technovation, Elsevier, vol. 122(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:15:y:2023:i:21:p:15500-:d:1271861. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.