Digital technologies as an accelerator for circular economy adoption by consumers: A literature review

Abstract

Purpose: To explore the intersection of circular economy, consumer behavior, and digital technologies, focusing on consumers' roles in transitioning to a circular economy and how digital technologies can accelerate this adoption process.

Design/methodology/approach: The study conducts a systematic literature review to investigate the integration of circular economy principles, consumer behavior, and digital technologies. It then develops an analytical framework outlining consumers' roles in the circular economy (customer, user, and end-of-life product holder).

Findings: The study reveals that digital technologies such as artificial intelligence, IoT, big data, blockchain, VR, AR, 3D printing, robotics, and mobile apps can enhance consumer trust, consumer engagement, user satisfaction, customer experience, and customer loyalty. These technologies also provide a competitive advantage to enterprises, support circular business models, innovation, novel ways of collaboration and sustainable brand image, and enable a better understanding of consumer behavior for customer attraction and retention, customization, and predictive analytics.

Practical implications: Digital technologies can empower consumers to make 20 more sustainable choices and actively participate in the circular economy transition. This development highlights how businesses and policymakers could leverage digital technologies to engage consumers in circular economy initiatives, potentially leading to more sustainable consumption patterns and business models.

Originality/value: The research contributes a theoretical framework that integrates consumer roles within the circular economy, digital technologies, and their benefits for consumers, companies, and performance outcomes. This synthesis of insights from circular economy principles, consumer behavior, and digitalization enriches existing circular consumer literature and provides practical insights while identifying areas for future research.