INTEGRATING DIGITAL TECHNOLOGIES AND CIRCULAR BUSINESS MODELS FOR SUSTAINABLE CONSTRUCTION AND INDUSTRIAL PRACTICES
Abstract
The transition toward a circular economy represents a fundamental paradigm shift in how industries, particularly construction and manufacturing, approach resource utilization, product lifecycle management, and business strategy. Despite the growing emphasis on circular economy principles, there remains a significant gap in understanding how digital technologies can effectively enable circular business models across diverse industrial sectors. This study synthesizes existing theoretical frameworks, empirical findings, and case study insights to explore the intersection of circular economy, digitalization, and business model innovation. The research examines technological, organizational, and environmental drivers that influence the adoption of circular practices, with a particular focus on construction, energy, and food systems. Methods include a comprehensive review of current literature, analysis of usage-focused business models, and integration of emerging digital tools such as blockchain, Internet of Things (IoT), and Building Information Modeling (BIM) in circular practices. Findings suggest that digital technologies not only enhance resource efficiency and waste reduction but also enable new business value propositions through service-based and usage-oriented models. Barriers such as regulatory challenges, high upfront investment costs, and organizational inertia are discussed, along with strategies to overcome these limitations. The study contributes a conceptual framework that integrates circular business model design with digital technology adoption, providing actionable insights for practitioners and policymakers. The implications for sustainable development, particularly in emergent economies and construction-intensive sectors, are significant, highlighting pathways to scalable, environmentally responsible industrial practices.
Keywords
Circular economy, digital technologies, construction
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