Understanding how circular economy practices and digital technologies are adopted and interrelated: A broad empirical study in the manufacturing sector

The circular economy is an effective paradigm for addressing sustainability challenges, yet studies quantitatively jointly analysing the adoption of circular economy practices and digital technologies are scarce. The present study provides an empirical investigation in 329 medium and large European manufacturing companies based on covariance-based structural equation modelling. The study identifies the adoption level of circular economy practices and digital technologies, and whether they are adopted standalone or in bundles, highlighting specificities related to company size, country and sector. The results identify six bundles of circular economy practices and three bundles of digital technologies. It also explores the relationship between circular economy practices and digital technologies. The study proposes three types of digital technologies enablers for the circular economy: base digital technologies (supporting business-as-usual circular economy); integrative digital technologies (relevant to less adopted circular economy practices); catalyser digital technologies (enablers for practices associated with both business-as-usual and circular business model innovation).