Digitalization in Circular Economy: A Pathway to Sustainable Corporate Value Creation: A Conceptual Framework

DOI

10.2991/978-2-38476-358-0_23How to use a DOI?

Keywords

Circular Economy; Waste Management; Sustainable Value creation. ESG Performance; Financial Performance; Digitalization; Digital Technologies

Abstract

Transitioning to the circular economy is a vital solution for pressing global issues, including resource depletion, greenhouse gas emissions, and waste management. This transition fosters sustainable resource utilization and bolsters both environmental and socioeconomic stability. Firms encounter difficulties implementing circular economy strategies due to insufficient integrated data, transparency, and resource management efficiency. This study introduces a conceptual framework that examines how digitalization via tools like IoT, big data analytics, and blockchain can foster sustainable corporate value within the circular economy framework by improving environmental, social, and governance (ESG) performance and financial performance. The study suggests using a quantitative methodology and a standardized questionnaire to collect data about manufacturing firms’ CE, digitalization, ESG, and financial performance. A pilot test will assess the survey's clarity, succeeded by data analysis utilizing exploratory factor analysis (EFA) in SPSS 25.0 and confirmatory factor analysis (CFA) in AMOS 21. Partial least squares structural equation modelling (PLS-SEM) will further substantiate the links between constructs, providing empirical validation for the system. This study enhances the literature on circular economy and digitalization by illustrating how digital technologies enable firms to generate sustainable corporate value and more efficiently adopt circular practices. The results provide practical insights for scholars and practitioners promoting sustainable growth and resilience via digitalized circular economy.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Rani Mahwish
AU  - Muhammad Kashif Shad
AU  - Fong Woon Lai
AU  - Salaheldin Hamad
PY  - 2025
DA  - 2025/01/31
TI  - Digitalization in Circular Economy: A Pathway to Sustainable Corporate Value Creation: A Conceptual Framework
BT  - Proceedings of the International Conference on Environmental, Social, and Governance (ICESG 2024)
PB  - Atlantis Press
SP  - 303
EP  - 329
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-38476-358-0_23
DO  - 10.2991/978-2-38476-358-0_23
ID  - Mahwish2025
ER  -