Enhancing circular economy practices through the adoption of digital technologies

Abstract In transitioning from a linear economy model to a circular business, digital technologies can help manage the flow of restorative and regenerative resources. In this context, the present study aims to evaluate the contribution of digital technologies, such as the internet of things (IoT), Big Data and Blockchain in the execution of circular economy (CE) practices and what mechanisms companies are adopting to integrate digital technologies into the circular context. The research method consists of an exploratory case study with a qualitative approach. Two prominent companies took part in the study. The results indicate benefits highlighted by companies, contemplate that Big Data analysis has improved performance in data processing and management, IoT has added monitoring and traceability to companies' packaging, thus bringing efficiency to recycling, recovery, reuse and disposal, and the Blockchain provides traceability, security and reliability for the implemented practice. This study contributes by exploring the factors that will help explain the mechanism for implementing CE practices. The present study integrates two dimensions (i.e., CE and digital technology). In doing so, it expands previous studies on CE practices by adopting digital technologies. As a practical contribution, the companies in the study understood that integration with startups benefits the development of projects. In addition to innovative proposals, they present digital technologies as management solutions for implementing CE practices.