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Digital technology and circular economy practices: future of supply chains

Author

Listed:
  • Syed Abdul Rehman Khan

    (Xuzhou University of Technology
    Beijing Key Laboratory of Urban Spatial Information Engineering)

  • Arsalan Zahid Piprani

    (Federal Urdu University of Arts)

  • Zhang Yu

    (Chang’an University
    ILMA University)

Abstract

Conversations on digital technologies and their use in a circular economy (CE) have proliferated in recent years. The ability to fully use circular resources has become possible with the development of advanced and digital manufacturing technologies. However, there is currently only a limited amount of research that looks at the impact of digital technology on the establishment of a circular economy in a supply-chain context. This study seeks to examine the effect of technological innovation on CE practises, intending to assess their relationship to environmental and economic performance. The authors developed a conceptual framework based on the comprehensive literature review and employed a quantitative method to evaluate the theoretical framework. This research uses survey data of 290 respondents from the small and medium enterprises (SMEs) located in China and Pakistan to explore a model that explains the link between technological innovation, CE practices and performance. The SMART PLS 3.3.3 version was utilized for data analysis. The test findings reveal that technological innovation is positively associated with CE practices and that leads to economic and environmental performance. The findings may assist policymakers and business professionals in taking the appropriate steps to successfully implement and operate circular economy practices. With this connection, this research emphasized that SMEs should integrate their CE practices with digital technology solutions to attain long-term financial and environmental goals.

Suggested Citation

  • Syed Abdul Rehman Khan & Arsalan Zahid Piprani & Zhang Yu, 2022. "Digital technology and circular economy practices: future of supply chains," Operations Management Research, Springer, vol. 15(3), pages 676-688, December.
    • Handle: RePEc:spr:opmare:v:15:y:2022:i:3:d:10.1007_s12063-021-00247-3
    DOI: 10.1007/s12063-021-00247-3
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    References listed on IDEAS

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    2. Alessandra Neri & Marta Negri & Enrico Cagno & Simone Franzò & Vikas Kumar & Tommaso Lampertico & Carlo Andrea Bassani, 2023. "The role of digital technologies in supporting the implementation of circular economy practices by industrial small and medium enterprises," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4693-4718, November.
    3. Khan, Syed Abdul Rehman & Zia-Ul-Haq, Hafiz Muhammad & Ponce, Pablo & Janjua, Laeeq, 2023. "Re-investigating the impact of non-renewable and renewable energy on environmental quality: A roadmap towards sustainable development," Resources Policy, Elsevier, vol. 81(C).
    4. Vimal K.E. K & Sivakumar K & Jayakrishna Kandasamy & Vaibhav Venkat & Raghuraman Srinivasan Mani, 2023. "Barriers to the adoption of digital technologies in a functional circular economy network," Operations Management Research, Springer, vol. 16(3), pages 1541-1561, September.

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