Digital Technologies Enhance Circular Economy Through Dynamic Capabilities
Integrating digital technologies can foster circular economy practices by developing organizational capabilities to sense, seize, and transform resources and opportunities.
Business Strategy and the Environment · 2023
Key Findings
- 01Digital technologies can enable specific dynamic capabilities (sensing, seizing, transforming) crucial for circular economy.
- 02These capabilities are supported by 'microfoundations' such as knowledge management and organizational agility.
- 03The integration of digital tools facilitates a deeper understanding and management of resources throughout their lifecycle.
Application
Design takeaway
Incorporate digital enablers into product design and strategy to build organizational capacity for circularity.
How to apply
When designing a new product or system, consider how digital technologies can be leveraged to enhance the organization's ability to sense, seize, and transform resources for circularity.
Project actions
- 01Consider how digital features in your design can support circular economy principles.
- 02Think about how data from your product can be used to improve its lifecycle management.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Provides a theoretical lens (dynamic capabilities) to understand the digital-circular economy link.
- +Empirical evidence from multiple case studies offers practical insights.
Limitations
The study's findings might be specific to the industrial context and may not directly apply to all design fields.
Reliability & validity
The use of multiple case studies enhances the validity of the findings by providing diverse perspectives, while the abductive logic allows for theoretical development. However, the qualitative nature of case studies may present challenges in terms of generalizability and direct replication for reliability testing.
Think critically
How might the 'microfoundations' of dynamic capabilities, such as organizational culture and employee skills, influence the effectiveness of digital technologies in supporting the circular economy?
Design Principles
"Design for digital-enabled circularity by considering the dynamic capabilities required for resource management throughout the product lifecycle."
For designers and engineers, understanding how digital tools enable dynamic capabilities is crucial for designing products and systems that are inherently circular. This insight highlights the need to consider not just the physical product but also the digital infrastructure and organizational strategies that support its lifecycle.
What This Means for Your Design
Using digital tools helps companies become better at managing resources for recycling and reuse, which is good for the environment.
How to use in your project
- 1.Use this research to justify the inclusion of digital components or strategies in your design project aimed at circularity.
- 2.Discuss how your design can foster the 'sensing,' 'seizing,' or 'transforming' capabilities for resource management.
Add to My Project
Quick Cite
(2023). What digital‐enabled dynamic capabilities support the circular economy? A multiple case study approach. Business Strategy and the Environment. https://doi.org/10.1002/bse.3409 Retrieved from https://designdex.org/study/0967e18d-b7a3-4eac-ac3f-36f3db52794a/digital-technologies-enhance-circular-economy-through-dynamic-capabilities
Paragraph starter
This study highlights that digital technologies are instrumental in developing dynamic capabilities essential for the circular economy. By enabling firms to better 'sense' opportunities, 'seize' resources, and 'transform' materials, digital integration supports a more effective transition to circular practices. This suggests that design projects aiming for circularity should consider the digital infrastructure and strategies that can bolster these organizational capacities.
Source
Business Strategy and the Environment
What digital‐enabled dynamic capabilities support the circular economy? A multiple case study approach
journal · 2023
View sourceQuestions about this research
- What does the research say about digital technologies enhance circular economy through dynamic capabilities?
- Incorporate digital enablers into product design and strategy to build organizational capacity for circularity. Evidence: Business Strategy and the Environment (2023).
- Why does "Digital Technologies Enhance Circular Economy Through Dynamic Capabilities" matter for design?
- For designers and engineers, understanding how digital tools enable dynamic capabilities is crucial for designing products and systems that are inherently circular. This insight highlights the need to consider not just the physical product but also the digital infrastructure and organizational strategies that support its lifecycle.
- How can designers apply this research?
- Incorporate digital enablers into product design and strategy to build organizational capacity for circularity.
- What were the main findings?
- Digital technologies can enable specific dynamic capabilities (sensing, seizing, transforming) crucial for circular economy.. These capabilities are supported by 'microfoundations' such as knowledge management and organizational agility.. The integration of digital tools facilitates a deeper understanding and management of resources throughout their lifecycle.
- What research method was used?
- Multiple Case Study with 11 firms.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2023 journal from Business Strategy and the Environment.
- What should I do differently in my next project?
- When designing a new product or system, consider how digital technologies can be leveraged to enhance the organization's ability to sense, seize, and transform resources for circularity.
- What are the limitations?
- The study focused on a specific geographical region (Northern Italy) and a limited number of firms, which may limit the generalizability of findings.
- Is there evidence that circular economy affects design outcomes?
- Digital technologies empower companies to better identify, act upon, and adapt to circular economy opportunities by improving their ability to manage information, resources, and processes. For designers and engineers, understanding how digital tools enable dynamic capabilities is crucial for designing products and syst Source: Business Strategy and the Environment (2023).
- Where does this dynamic capabilities research apply?
- Industrial firms adopting digital technologies for circular economy transition. It sits within resource management research on designdex.org.
Related research topics
circular economy design research · evidence on circular economy · does circular economy improve design outcomes · dynamic capabilities studies for designers · circular economy and dynamic capabilities findings · resource management research evidence