Analysis of Circular Supply Chain Management in Technology Industry to Support Circular Economy
DOI:
https://doi.org/10.30743/8vvcf741Keywords:
Circular Supply Chain Management; Technology Industry; Circular Economy; Digital Technologies; SustainabilityAbstract
The rapid development of the technology industry demands transformation from linear economic models toward circular economy to achieve long-term sustainability. This research analyzes the implementation of circular supply chain management in the technology industry as a strategy to support circular economy. A descriptive qualitative research method was used with a systematic literature review approach on 35 scientific articles from reputable journals within the 2019-2024 range. Analysis was conducted on three main dimensions: digital technologies integration, sustainable supply chain practices, and circular business model implementation. Research results show that implementing circular supply chain management in the technology industry can increase resource utilization efficiency up to 40%, reduce waste generation by 35%, and increase company profitability by an average of 25%. Digital technologies such as IoT, blockchain, and artificial intelligence serve as primary enablers in optimizing circular supply chain processes. Research findings identify five critical success factors: digital infrastructure readiness, stakeholder collaboration, regulatory support, circular design thinking, and performance measurement systems. This research contributes to the development of theoretical and practical frameworks for implementing circular supply chain management in the context of Indonesia's technology industry.
References
M. Farooque, A. Zhang, M. Thürer, T. Qu, and D. Huisingh, "Circular supply chain management: A definition and structured literature review," Journal of Cleaner Production, vol. 228, pp. 882-900, 2019. DOI: https://doi.org/10.1016/j.jclepro.2019.04.303
S. Lahane, R. Kant, and R. Shankar, "Circular supply chain management: A state-of-art review and future opportunities," Journal of Cleaner Production, vol. 258, p. 120859, 2020. DOI: https://doi.org/10.1016/j.jclepro.2020.120859
N. García-Buendia, J. Moyano-Fuentes, J. M. Maqueira-Marín, and M. J. Cobo, "Squaring circular supply chain management: A comprehensive overview of emerging themes and trends," Business Strategy and the Environment, vol. 33, no. 6, pp. 5448-5471, 2024. DOI: https://doi.org/10.1002/bse.3932
E. Kristoffersen, F. Blomsma, P. Mikalef, and J. Li, "The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies," Journal of Business Research, vol. 120, pp. 241-261, 2020. DOI: https://doi.org/10.1016/j.jbusres.2020.07.044
U. Awan, R. Sroufe, and M. Shahbaz, "Industry 4.0 and the circular economy: A literature review and recommendations for future research," Business Strategy and the Environment, vol. 30, no. 4, pp. 2038-2060, 2021. DOI: https://doi.org/10.1002/bse.2731
R. de Angelis, M. Howard, and J. Miemczyk, "Supply chain management and the circular economy: towards the circular supply chain," Production Planning & Control, vol. 29, no. 6, pp. 425-437, 2018. DOI: https://doi.org/10.1080/09537287.2018.1449244
L. Batista, M. Bourlakis, P. Smart, and R. Maull, "In search of a circular supply chain archetype–a content-analysis-based literature review," Production Planning & Control, vol. 29, no. 6, pp. 438-451, 2018. DOI: https://doi.org/10.1080/09537287.2017.1343502
N. K. Dev, R. Shankar, and F. H. Qaiser, "Industry 4.0 and circular economy: Operational excellence for sustainable reverse supply chain performance," Resources, Conservation and Recycling, vol. 153, p. 104583, 2020. DOI: https://doi.org/10.1016/j.resconrec.2019.104583
C. J. C. Jabbour, P. D. C. Fiorini, N. O. Ndubisi, M. M. Queiroz, and É. L. Piato, "Digitally-enabled sustainable supply chains in the 21st century: A review and a research agenda," Science of The Total Environment, vol. 725, p. 138177, 2020. DOI: https://doi.org/10.1016/j.scitotenv.2020.138177
S. Bag, J. H. C. Pretorius, S. Gupta, and Y. K. Dwivedi, "Role of institutional pressures and resources in the adoption of big data analytics powered artificial intelligence, sustainable manufacturing practices and circular economy capabilities," Technological Forecasting and Social Change, vol. 163, p. 120420, 2021. DOI: https://doi.org/10.1016/j.techfore.2020.120420
M. Kouhizadeh, S. Saberi, and J. Sarkis, "Blockchain technology and the sustainable supply chain: Theoretically exploring adoption barriers," International Journal of Production Economics, vol. 231, p. 107831, 2021. DOI: https://doi.org/10.1016/j.ijpe.2020.107831
E. Ingemarsdotter, E. Jamsin, G. Kortuem, and R. Balkenende, "Circular strategies enabled by the Internet of Things—A framework and analysis of current practice," Sustainability, vol. 11, no. 20, p. 5689, 2019. DOI: https://doi.org/10.3390/su11205689
R. Dubey, A. Gunasekaran, S. J. Childe, T. Papadopoulos, Z. Luo, S. F. Wamba, and D. Roubaud, "Can big data and predictive analytics improve social and environmental sustainability?" Technological Forecasting and Social Change, vol. 144, pp. 534-545, 2019. DOI: https://doi.org/10.1016/j.techfore.2017.06.020
V. Ranta, L. Aarikka-Stenroos, P. Ritala, and S. J. Mäkinen, "Exploring institutional drivers and barriers of the circular economy: A cross-regional comparison of China, the US, and Europe," Resources, Conservation and Recycling, vol. 135, pp. 70-82, 2018. DOI: https://doi.org/10.1016/j.resconrec.2017.08.017
N. M. Bocken, I. de Pauw, C. Bakker, and B. van der Grinten, "Product design and business model strategies for a circular economy," Journal of Industrial and Production Engineering, vol. 33, no. 5, pp. 308-320, 2016. DOI: https://doi.org/10.1080/21681015.2016.1172124
Y. Kazancoglu, I. Kazancoglu, and M. Sagnak, "A new holistic conceptual framework for green supply chain management performance assessment based on circular economy," Journal of Cleaner Production, vol. 195, pp. 1282-1299, 2018. DOI: https://doi.org/10.1016/j.jclepro.2018.06.015
K. Govindan and M. Hasanagic, "A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective," International Journal of Production Research, vol. 56, no. 1-2, pp. 278-311, 2018. DOI: https://doi.org/10.1080/00207543.2017.1402141
P. Rosa, C. Sassanelli, and S. Terzi, "Towards Circular Business Models: A systematic literature review on classification frameworks and archetypes," Journal of Cleaner Production, vol. 236, p. 117696, 2019. DOI: https://doi.org/10.1016/j.jclepro.2019.117696
G. Bressanelli, F. Adrodegari, M. Perona, and N. Saccani, "Exploring how usage-focused business models enable circular economy through digital technologies," Sustainability, vol. 10, no. 3, p. 639, 2018. DOI: https://doi.org/10.3390/su10030639
A. Urbinati, D. Chiaroni, and V. Chiesa, "Towards a new taxonomy of circular economy business models," Journal of Cleaner Production, vol. 168, pp. 487-498, 2017. DOI: https://doi.org/10.1016/j.jclepro.2017.09.047
M. L. Tseng, R. R. Tan, A. S. Chiu, C. F. Chien, and T. C. Kuo, "Circular economy meets industry 4.0: Can big data drive industrial symbiosis?" Resources, Conservation and Recycling, vol. 131, pp. 146-147, 2018. DOI: https://doi.org/10.1016/j.resconrec.2017.12.028
M. Antikainen and K. Valkokari, "A framework for sustainable circular business model innovation," Technology Innovation Management Review, vol. 6, no. 7, pp. 5-12, 2016. DOI: https://doi.org/10.22215/timreview/1000
D. Masi, S. Day, and J. Godsell, "Supply chain configurations in the circular economy: A systematic literature review," Sustainability, vol. 9, no. 9, p. 1602, 2017. DOI: https://doi.org/10.3390/su9091602
J. Kirchherr, D. Reike, and M. Hekkert, "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation and Recycling, vol. 127, pp. 221-232, 2017. DOI: https://doi.org/10.1016/j.resconrec.2017.09.005
M. Linder and M. Williander, "Circular business model innovation: inherent uncertainties," Business Strategy and the Environment, vol. 26, no. 2, pp. 182-196, 2017. DOI: https://doi.org/10.1002/bse.1906
R. Merli, M. Preziosi, and A. Acampora, "How do scholars approach the circular economy? A systematic literature review," Journal of Cleaner Production, vol. 178, pp. 703-722, 2018. DOI: https://doi.org/10.1016/j.jclepro.2017.12.112
K. Manninen, S. Koskela, R. Antikainen, N. Bocken, H. Dahlbo, and A. Aminoff, "Do circular economy business models capture intended environmental value propositions?" Journal of Cleaner Production, vol. 171, pp. 413-422, 2018. DOI: https://doi.org/10.1016/j.jclepro.2017.10.003
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Supriadi, Safrida, Dewi Budhiartini Yuli Isnaini, Yusrita, Zenni Riana, Nur Augus Fahmi, Bagus Handoko, Evi Susilawati
This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
