Strategic integration of circular economy and digital technologies for sustainable industrial transformation

Abstract

Abstract The circular economy (CE) has gained increasing attention as a strategic approach to reducing resource dependency and mitigating environmental impacts within industrial systems. At the same time, digital transformation and organizational change have emerged as critical factors influencing the feasibility of circular transition pathways. However, existing research remains fragmented in addressing how circular economy principles, Industry 4.0 technologies, and organizational change mechanisms are jointly considered. This study examines the intersection of these domains through a hybrid systematic literature review and bibliometric analysis of peer-reviewed research. The analysis identifies recurring circular economy principles, digital technological enablers, organizational change strategies, contextual barriers and enablers, and performance monitoring mechanisms. Building on these findings, the study proposes an integrative conceptual framework that synthesizes these dimensions to support analytical understanding of circular transformation dynamics in industrial contexts. In addition, the paper introduces an illustrative decision-support logic and a conceptual AI-based extension to demonstrate how insights from the literature may be structured to explore the prioritization of circular initiatives based on impact potential, implementation effort, and readiness conditions. Rather than offering prescriptive solutions, the proposed framework and illustrative models contribute to theoretical consolidation and provide a foundation for future empirical research on digitally enabled circular economy transitions.