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Adopting a circular economy (CE) has rapidly emerged among policymakers and business community stakeholders to promote material circularization and ensure sustainable development. While the inclination for a paradigm shift away from the linear economy is evident, many challenges have been quoted in the literature regarding its implementation. Lately, it has become common to propose Information and Communication Technologies (ICT)-based approaches to address these challenges. However, they do not question the practicality of the solutions in the context of CE. This paper aims to find an appropriate digital solution for CE implementation, which is not possible without a complete understanding of the existing challenges. A thorough literature review broadly classified the challenges under five barrier categories: Technological, Financial, Infrastructural, Institutional, and Societal, which was followed up with an investigation into the failure of ICT solutions to address CE challenges. Among the various technologies, blockchain and smart contract technologies show some promise as data-driven decision-making tools; however, they are not without their limitations when applied in the context of CE. This perspective explores the role of blockchain smart contract technology-scape in overcoming CE challenges and presents a circular economy blockchain (CEB) architecture development. The findings suggest that CEB may enable CE business models that improve trust and transparency in supply-chain networks, shared and performance economy platforms, stakeholder participation, and governance and management of organizations. Ultimately, this study highlights critical areas for research and development for the blockchainification of CE.

Global industrialization and excessive dependence on nonrenewable energy sources have led to an increase in solid waste and climate change, calling for strategies to implement a circular economy in all sectors to reduce carbon emissions by 45% by 2030, and to achieve carbon neutrality by 2050. Here we review circular economy strategies with focus on waste management, climate change, energy, air and water quality, land use, industry, food production, life cycle assessment, and cost-effective routes. We observed that increasing the use of bio-based materials is a challenge in terms of land use and land cover. Carbon removal technologies are actually prohibitively expensive, ranging from 100 to 1200 dollars per ton of carbon dioxide. Politically, only few companies worldwide have set climate change goals. While circular economy strategies can be implemented in various sectors such as industry, waste, energy, buildings, and transportation, life cycle assessment is required to optimize new systems. Overall, we provide a theoretical foundation for a sustainable industrial, agricultural, and commercial future by constructing cost-effective routes to a circular economy.

Taking into consideration the existing Industry 4.0 infrastructures and the rise of Industry 5.0 (I5.0), more and more solutions are being developed, aiming towards increased environmental consciousness through advanced technologies, and human centricity. However, there are ongoing requirements on data traceability, and access to the related actors, to ensure the establishment of sustainable solutions, within the context of a digital circular economy (DCE) environment. Digital product passports (DPPs) constitute such novel technological solution that can enable the transition toward DCE and sustainable I4.0 and I5.0, as digital identities that are assigned to physical products, capable of tracing their lifecycles through data such as their technical specifications, usage instructions, and repair and maintenance information. Although the respective research community has started providing a thorough analysis of DPPs potential to constitute a CE enabler, their technical requirements are still unclear. As part of our contribution to this issue, we propose a fundamental CE framework with integrated DPP characteristics, with the potential of being adapted in different sector stages for the generation and distribution of DPPs both for stakeholders and consumers. The corresponding solution is further supported through a systematic literature review that follows a technological approach to the DPPs implementation.

Internet of Things (IoT) can help to pave the way to the circular economy and to a more sustainable world by enabling the digitalization of many operations and processes, such as water distribution, preventive maintenance, or smart manufacturing. Paradoxically, IoT technologies and paradigms such as edge computing, although they have a huge potential for the digital transition towards sustainability, they are not yet contributing to the sustainable development of the IoT sector itself. In fact, such a sector has a significant carbon footprint due to the use of scarce raw materials and its energy consumption in manufacturing, operating, and recycling processes. To tackle these issues, the Green IoT (G-IoT) paradigm has emerged as a research area to reduce such carbon footprint; however, its sustainable vision collides directly with the advent of Edge Artificial Intelligence (Edge AI), which imposes the consumption of additional energy. This article deals with this problem by exploring the different aspects that impact the design and development of Edge-AI G-IoT systems. Moreover, it presents a practical Industry 5.0 use case that illustrates the different concepts analyzed throughout the article. Specifically, the proposed scenario consists in an Industry 5.0 smart workshop that looks for improving operator safety and operation tracking. Such an application case makes use of a mist computing architecture composed of AI-enabled IoT nodes. After describing the application case, it is evaluated its energy consumption and it is analyzed the impact on the carbon footprint that it may have on different countries. Overall, this article provides guidelines that will help future developers to face the challenges that will arise when creating the next generation of Edge-AI G-IoT systems.

Even though the traction towards a circular economy (CE) is on the rise, and the benefits a CE has across ecological, economic, and social frontiers have been undeniable, still, CE-related developments and its adoption have not been appealing. This study conducts a systematic literature review of the CE-related literature in line with the ‘umbrella framework’ to find the current state of the diffusion and diversification of CE concepts both in the academic context as well as in application. Using a thematic and content analysis of the sampled literature, the study (i) develops a comprehensive and inclusive CE definition and (ii) examines the level of diffusion of CE in the economy. The study concludes that, even though CE-related developments are positive and promising, it is still in the validity phase of the umbrella framework and recommends focusing more on the application-based intervention of the CE.

PurposeReverse logistics services are designed to move goods from their point of consumption to an endpoint to capture value or properly dispose of products and materials. Artificial intelligence (AI)-based reverse logistics will help Micro, Small, and medium Enterprises (MSMEs) adequately recycle and reuse the materials in the firms. This research aims to measure the adoption of AI-based reverse logistics to improve circular economy (CE) performance.Design/methodology/approachIn this study, we proposed ten hypotheses using the theory of natural resource-based view and technology, organizational and environmental framework. Data are collected from 363 Indian MSMEs as they are the backbone of the Indian economy, and there is a need for digital transformation in MSMEs. A structural equation modeling approach is applied to analyze and test the hypothesis.FindingsNine of the ten proposed hypotheses were accepted, and one was rejected. The results revealed that the relative advantage (RA), trust (TR), top management support (TMS), environmental regulations, industry dynamism (ID), compatibility, technology readiness and government support (GS) positively relate to AI-based reverse logistics adoption. AI-based reverse logistics indicated a positive relationship with CE performance. For mediation analysis, the results revealed that RA, TR, TMS and technological readiness are complementary mediation. Still, GS, ID, organizational flexibility, environmental uncertainty and technical capability have no mediation.Practical implicationsThe study contributed to the CE performance and AI-based reverse logistics literature. The study will help managers understand the importance of AI-based reverse logistics for improving the performance of the CE in MSMEs. This study will help firms reduce their carbon footprint and achieve sustainable development goals.Originality/valueFew studies focused on CE performance, but none measured the adoption of AI-based reverse logistics to enhance MSMEs’ CE performance.

PurposeThis study explores the role of external pressure, engagement capability (ENC), alliance capability (ACA), environmental sustainability commitment (ESC), and circular supply chain capability in circular economy performance.Design/methodology/approachThrough a cross-sectional survey and data collected from 124 small and medium enterprises (SMEs) in Ghana, this study employs partial least square structural equation modelling (PLS-SEM) to test the proposed model.FindingsThe findings reveal the following; first, external pressure has a significant impact on ESC. Second, ESC positively impacts ACA, ENC and circular supply chain capability. Third, ACA and ENC mediate the relationship between ESC and circular supply chain capability. Finally, circular supply chain capability has a significant impact on circular economy performance.Originality/valueThe originality of this study lies in testing a novel model that confirms that SMEs respond to external pressure by enhancing ESC as well as develop engagement and alliance capabilities to improve circular supply chain capability to achieve circular economy performance goals.

The integration of sustainability in the circular economy is an emerging paradigm that can offer a long term vision to achieve environmental and social sustainability targets in line with the United Nation’s Sustainable Development Goals. Developing scalable and sustainable impacts in circular economy business models (CEBMs) has many challenges. While many advanced technology manufacturing firms start as small enterprises, remarkably little is known about how material reuse firms in sociotechnical systems transition towards circular business models. Research into CEBMs integrating sustainability and environmental conservation is still in its early stages. There has been increased interest in sustainability and circular economy research, but current research is fragmented. The innovation surrounding CEBMs eludes some firms with relatively limited evidence of the transitional perspective necessary to integrate aspects of sustainability. This lack of evidence is especially applicable to the context of circular economy practices in small and medium enterprises in the United States regarding capabilities, operations obstacles, and elements of success in designing circular business models. Based on a qualitative, interview-based inductive study of a material reuse firm, our research develops a conceptual model of the critical success factors and obstacles that are part of implementing circular economy practices. Firms must first manage strategic enablers and monitor tactical enablers to achieve sustainability goals. In this study, we identify the underlying enablers of how these capabilities affect the transition to a CEBM that integrates sustainability. The framework emerging from our findings highlights the interplay of CEBM, innovation success factors, and obstacles at a micro-level. The investigation of a material reuse firm serves as the foundation for developing a framework for how managers can alter a company and revise the business model to transition towards a more innovative circular economy.

At present, the circular economy is emerging as a strategy for sustainable development. What is important in promoting the circular economy is to assess its current level and take measures for assessment. This paper discusses some methodological issues in comparing and assessing the efforts for the circular economy at the international level. To this end, the authors explain the theoretical premise related to the assessment of efforts for the circular economy, establish an indicator system for assessing the efforts for the circular economy, and suggest a method for comprehensively assessing the efforts for the circular economy by country. The conclusions are that (a) the comparative evaluation of activities related to the circular economy by country requires a unified standard or category that can cover these activities, including all factors that meet sustainable development; the outcome, process, and guarantee of the circular economy, and this can be the circular economy effort and (b) the circular economy effort of a given country must synthetically be assessed by using the indicators capable of showing all aspects. These conclusions may contribute to establishing a new theoretical foundation that can include various aspects of the circular economy activities and to setting a practical and methodological foundation for evaluating each country’s various activities related to the circular economy at the international level and can serve as a policy basis for identifying the weak and strong aspects of circular economy activities at the domestic or international level and establishing technological and economic measures to strengthen the weak aspects.

PurposeThis paper aims to examine the mechanism of how circular economy practices (CEP) and circular economy entrepreneurship (CEE) promote sustainable supply chain management (SCM) and facilitate sustainable performance (SP) for small and medium-sized enterprises (SMEs) in the food value chain in emerging economy. In this context, this mechanism involves the mediating role of sustainable SCM in the relationship between CEP and SP. Simultaneously, it involves the moderating role of CEE in the link between CEP and sustainable SCM.Design/methodology/approachThe paper follows a quantitative approach. Based on systematic literature review on the field, the nexus amongst the constructs were proposed. The Smart partial least square (PLS) version 3.3.2 was employed to analyze structural equation modeling (SEM) to investigate the relationships between constructs and latent variables. There were 457 valid responses obtained from the survey participants, those are managers at senior and middle levels. The data collected was then used for quantitative analysis and assessment.FindingsThe main finding of this study is twofold. First, it sheds light on how CEE associates in strengthening the influence of CEP on sustainable SCM. By this way, the better the CEE, the stronger the impact of the CEP on the sustainable SCM, leading to long-term sustainability. Second, it reveals how sustainable SCM mediates the link between CEP and SP. By this way, the better the CEP, the more the SCM is sustainable, ultimately leading to SP. This contribution is paramount because experimental research on this mechanism has not been intensively explored in the current literature.Originality/valueThe originality of this study is the provision of scientific knowledge and practical mechanisms for the introduction and application of CEP to business behaviors and practices in a real-world context that exists as a research gap in the current literature. In this respect, this study contributes to expanding the existing literature in the field by providing empirical evidence for the mechanism as stated. Furthermore, it provides a practical mechanism for SMEs in given context to enable them apply efficiently the circular economy perspective to their businesses to help them achieve SP. These contributions may be of interest to business practitioners, business leaders, academics and policymakers in the areas that are of their concerns.