Digital Technologies and the Circular Economy: A Theoretical Perspective

This study investigates the interplay between digital technologies and the circular economy (CE) within supply chain management through theoretical lenses. We conduct a systematic literature review to explore the theoretical underpinnings at the intersection of digital technologies and CE. We determine the dominant theories and how do they relate within a broader ecosystem. We further outline the promising avenues and topics for future research to foster the understanding and application of joint adoption of digital technologies and CE. Contributing to the existing literature, this study develops a three-level framework (micro, meso, macro) enriched with a multi-stakeholder perspective to present in-depth insights into the interplay between digital technologies and CE from theoretical viewpoints. Our proposed framework synthesizes 28 distinct theories, employed in literature to examine the dynamics between digital technologies and CE, and categorizes them into five key areas: motivators, enablers, synergy, external environmental context, and multi-level stakeholders. Leveraging this framework, several research propositions, each grounded in one of the identified categories, are proposed to further explore this domain. This paper advances the theoretical discourse in the interplay between digital technologies and CE and provides research and managerial implications for both scholars and practitioners.