The role of digital technologies in configuring circular ecosystems

Abstract

Purpose This paper aims to explore the use of digital technologies in enabling circular ecosystems. We apply supply network (SN) configuration theory and a novel resource pooling lens, more typically used in financial systems, to identify inventory pools, information repositories and financial exchange models among network actors. Design/methodology/approach Five in-depth circular SN case studies are examined where digital technologies are extensively deployed to support circularity, each case representing alternative SN configurations. Data collection involved semi-structured interviews to map SN and resource pooling configurations across each circular ecosystem, with cross-case analysis used to identify distinct pooling and digital strategies. Findings Results suggest three digitally enabled circular ecosystem archetypes and their related governance modalities: consortia-based information pooling for resource recovery, intermediary-enabled material and financial pooling for remanufacturing and platform-driven information, material and financial pooling for resource optimisation. Research limitations/implications Drawing on SN configuration and resource pooling literature, we recognise distinct configurational, stakeholder and resource pooling dimensions characterising circular ecosystems. While this research is exploratory and the identified archetypes not exhaustive, the combination of resource pooling and configuration lenses offers new insights on circular ecosystem configurations and the critical role of resource pools and enabling digital technologies. Practical implications We demonstrate the utility of the resource pooling and configuration approach in the design of digitally enabled circular ecosystems. These archetypes provide practitioners and policymakers with alternative design frameworks when considering circular SN transformations. Originality/value This paper introduces a resource netting and pooling configuration lens to circular ecosystems, analogous to financial systems, where cyclical flows and stock are critical and enabled through digital technologies.

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