Digital Transformation and Circular Economy Integration: Pathways for Sustainable Business Innovation

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Digital Transformation and Circular Economy Integration: Pathways for Sustainable Business Innovation

Author Information
1
Institute of Environmental Engineering, Peoples’ Friendship University of Russia (RUDN) Named after Patrice Lumumba, Moscow 117198, Russia
2
Faculty of Management Science, University of Benin, P.M.B. 1154, Ugbowo, Benin City 300283, Nigeria
3
Faculty of Natural Sciences, Redeemer’s University, Akoda, Ede Rd, Ede 232101, Nigeria
4
Auchi Polytechnic, Auchi Along Benin—Okene Road, P.M.B 13, Auchi 312101, Nigeria
5
Faculty of Physics, Mathematics and Natural Sciences, Peoples’ Friendship University of Russia (RUDN) Named after Patrice Lumumba, Moscow 117198, Russia
*
Authors to whom correspondence should be addressed.

Received: 13 September 2025 Accepted: 17 October 2025 Published: 28 October 2025

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© 2025 The authors. This is an open access article under the Creative Commons Attribution 4.0 International License (https://creativecommons.org/licenses/by/4.0/).

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Ecol. Civiliz. 2026, 3(1), 10019; DOI: 10.70322/ecolciviliz.2025.10019
ABSTRACT: The accelerating pace of digital transformation has reshaped how industries pursue sustainability, offering innovative ways to integrate environmental responsibility into business strategy. This study examines how digital technologies such as artificial intelligence, blockchain, the Internet of Things, and big data analytics enable the adoption of circular economy principles in sustainable business innovation. Using a systematic literature review of 85 studies published between 2015 and 2025, the research identifies key mechanisms through which digital transformation enhances resource efficiency, extends product lifecycles, and promotes transparent supply chains. The findings show that digitalization strengthens competitiveness and sustainability but presents challenges such as high implementation costs, unequal access to digital infrastructure, and the environmental footprint of information and communication technology systems. The study concludes that aligning digital adoption with organizational culture, governance structures, and supportive policy frameworks is essential for realizing circular economy strategies at scale and achieving resilient, low carbon, and sustainable business models.
Keywords: Digital transformation; Circular economy; Artificial intelligence; Blockchain; Internet of things; Big data analytics; Sustainable business innovation; Resource efficiency
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