CONCEPT OF A SUSTAINABLE DIGITAL BUSINESS MODEL FOR THE MANUFACTURING SECTOR
Abstract
Achieving sustainable development goals requires the broad implementation of circular economy (CE) practices in business. Modern digital technologies have significant potential to support this process by enabling the effective implementation of circular strategies through the transformation of existing business models. This, in turn, necessitates research into the nature and content of such transformations. The purpose of this study is to develop a generalised concept of a business model for a manufacturing enterprise, based primarily on the use of digital technologies to apply the core principles of the circular economy and contribute to sustainable development goals. The research methodology involves identifying the most relevant publications from the Scopus database (since 2015) that integrate circular business models and digital technologies, followed by a qualitative analysis. This analysis focused on identifying specific forms of business process transformation, key life cycle stages for implementing CE practices, and the main digital tools enabling such transformation. Based on the findings, a generalised concept of a Sustainable Digital Business Model (SDBM) for a manufacturing enterprise was developed. It integrates the classical elements of a business model (value creation, delivery, and capture) with life cycle phases and the application of circular economy principles through digital tools. The study demonstrates that digital tools within the SDBM framework are applied at all stages of the production–consumption cycle to increase process transparency and efficiency, generate informational, service, and resource value, and ensure sustainable synergy among all stakeholders. The concept of an SDBM functions as a systemic framework that facilitates the simultaneous use of digital solutions to close material loops, foster new forms of user interaction, transform business processes, and advance sustainable development goals. This concept can be adapted across various sectors of the economy and serve as a foundation for the development and implementation of practical business solutions.
References
European Union. EU Green Week 2025: Circular Solutions for a Competitive EU. 2025. URL: https://green-week.event.europa.eu/index_en (дата звернення: 15.06.2025).
Черняєва А. Використання новітніх цифрових інструментів та технологій ведення бізнесу. Економіка та суспільство. 2024. № 60. DOI: https://doi.org/10.32782/2524-0072/2024-60-89.
Дикой Р. О. Цифрова трансформація економіки та бізнесу в умовах переходу до зеленої економіки. European Scientific Journal of Economic and Financial Innovation. 2025. № 2(16). C. 82–92. DOI: https://doi.org/10.32750/2025-0208.
Маслак О.О., Вороновська М.М. Моделювання стану тактичного планування в системі циркулярних бізнес-моделей підприємств. Економічний простір. 2025. № 198. С. 201–208. DOI: https://doi.org/10.30838/EP.198.201-208.
Кифяк В.І., Олійник О.Б. Інтеграція принципів циркулярної економіки в сталий розвиток бізнес-моделей аграрного сектору в умовах цифровізації. Економічний простір. 2025. № 197. С. 38–45. DOI: https://doi.org/10.30838/EP.197.38-45.
Kristoffersen E., Blomsma F., Mikalef P., Li J. The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies. Journal of Business Research. 2020. № 120. Р. 241–261. DOI: https://doi.org/10.1016/j.jbusres.2020.07.044.
Elghaish F., Matarneh S. T., Edwards D. J., Pour Rahimian F., El-Gohary H., Ejohwomu O.Applications of Industry 4.0 digital technologies towards a construction circular economy: Gap analysis and conceptual framework. Construction Innovation. 2022. Vol. 22. № 3. Р. 647–670. DOI: https://doi.org/10.1108/CI-03-2022-0062.
Garcia-Muiña F. E., González-Sánchez R., Ferrari A. M., Settembre-Blundo D.The paradigms of Industry 4.0 and circular economy as enabling drivers for the competitiveness of businesses and territories: The case of an Italian ceramic tiles manufacturing company. Social Sciences. 2018. Vol. 7. № 12. Р. 255–285. DOI: https://doi.org/10.3390/socsci7120255.
Prakash G., Ambedkar K. Digitalization of manufacturing for implanting value, configuring circularity and achieving sustainability. Journal of Advances in Management Research. 2023. Vol. 20. № 1. Р. 116–139. DOI: https://doi.org/10.1108/JAMR-01-2022-0010.
Osterwalder A., Pigneur Y. Aligning profit and purpose through business model innovation. Responsible Management Practices for the 21st Century / G. Palazzo, M. Wentland. Pearson International Editors, Paris, 2011. P. 61–75.
Garcia-Muiña F. E., González-Sánchez R., Ferrari A. M., Settembre-Blundo D. Identifying the equilibrium point between sustainability goals and circular economy practices in an Industry 4.0 manufacturing context using eco-design. Social Sciences. 2019. Vol. 8. № 8. Р. 241–262. DOI: https://doi.org/10.3390/socsci8080241.
Коблянська І. Еволюція методології оцінювання життєвого циклу: Світовий та вітчизняний контексти. Економіка та суспільство. 2022. № 42. DOI: https://doi.org/10.32782/2524-0072/2022-42-27.
Ellen MacArthur Foundation. (2025). Circular economy principles. 2025. URL: https://www.ellenmacarthurfoundation.org/circular-economy-principles (дата звернення: 01.06.2025).
Silva T. H. H. D., Sehnem S. (2024). Industry 4.0 technologies as a motivator for the circular economy in foodtechs: A stakeholder perspective. Sustainable Development. 2024. Vol. 32. № 5. Р. 4633–4648. DOI: https://doi.org/10.1002/sd.2921.
Ramakrishna S., Ngowi A., Jager H. D., Awuzie B. O. Emerging industrial revolution: Symbiosis of Industry 4.0 and circular economy: The role of universities. Science, Technology and Society. 2020. Vol. 25. № 3. Р. 505–525. DOI: https://doi.org/10.1177/0971721820912918.
Ingemarsdotter E., Jamsin E., Kortuem G., Balkenende R. Circular strategies enabled by the Internet of Things – A framework and analysis of current practice. Sustainability. 2019. Vol. 11. № 20. Р. 5689–5725. DOI: https://doi.org/10.3390/su11205689.
Bressanelli G., Adrodegari F., Perona M., Saccani N. Exploring how usage-focused business models enable circular economy through digital technologies. Sustainability. 2018. Vol. 10. № 3. Р. 639–659. DOI: https://doi.org/10.3390/su10030639.
Massaro M., Secinaro S., Dal Mas F., Brescia V., Calandra D. Industry 4.0 and circular economy: An exploratory analysis of academic and practitioners’ perspectives. Business Strategy and the Environment. 2021. Vol. 30. № 2. Р. 1213–1231. DOI: https://doi.org/10.1002/bse.2680.
Sun X., Wang X. Modeling and analyzing the impact of the Internet of Things-based Industry 4.0 on circular economy practices for sustainable development: Evidence from the food processing industry of China. Frontiers in Psychology. 2022. № 13. Р. 866361–866373. DOI: https://doi.org/10.3389/fpsyg.2022.866361.
Talla A., McIlwaine S. Industry 4.0 and the circular economy: Using design-stage digital technology to reduce construction waste. Smart and Sustainable Built Environment. 2024. Vol. 13. № 1. Р. 179–198. DOI: https://doi.org/10.1108/SASBE-03-2022-0050.
Nagatomo D. Research on education for sustainable development with design-based research by employing Industry 4.0 technologies for the issue of single-use plastic waste in Taiwan. Sustainability. 2024. Vol. 16. № 22. Р. 9832–9851. DOI: https://doi.org/10.3390/su16229832.
Esmaeilian B., Sarkis J., Lewis K., Behdad S. Blockchain for the future of sustainable supply chain management in Industry 4.0. Resources, Conservation and Recycling. 2020. № 163. Р. 105064–105078. DOI: https://doi.org/10.1016/j.resconrec.2020.105064.
Charnley F., Knecht F., Muenkel H., Pletosu D., Rickard V., Sambonet C., Schneider M., Zhang C. Can digital technologies increase consumer acceptance of circular business models? The case of second hand fashion. Sustainability. 2022. Vol. 14. № 8. Р. 4589–4609. DOI: https://doi.org/10.3390/su14084589.
Ali M. U., Khan I., Khan H. Leveraging Industry 4.0 technologies and industrial symbiosis: Advancing circular economy practices in BRICS economies. Journal of Environmental Management. 2025. № 383. Р. 125471–125481. DOI: https://doi.org/10.1016/j.jenvman.2025.125471.
Krstić M., Agnusdei G. P., Miglietta P. P., Tadić S. Logistics 4.0 toward circular economy in the agri-food sector. Sustainable Futures. 2022. № 4. Р. 100097–100107. DOI: https://doi.org/10.1016/j.sftr.2022.100097.
Reuter M. A. Digitalizing the circular economy: Circular economy engineering defined by the metallurgical Internet of Things. Metallurgical and Materials Transactions B. 2016. Vol. 47. № 6. Р. 319–3220. DOI: https://doi.org/10.1007/s11663-016-0735-5.
Kalogiannidis S., Kalfas D., Chatzitheodoridis F., Kontsas S. The impact of digitalization in supporting the performance of circular economy: A case study of Greece. Journal of Risk and Financial Management. 2022. Vol. 15. № 8. Р. 349–366. DOI: https://doi.org/10.3390/jrfm15080349.
Voukkali I., Papamichael I., Economou F., Loizia P., Klontza E., Lekkas D. F., Naddeo V., Zorpas A. A. Factors affecting social attitude and behavior for the transition towards a circular economy. Sustainable Chemistry and Pharmacy. 2023. № 36. Р. 101276–101286. DOI: https://doi.org/10.1016/j.scp.2023.101276.
Zohourfazeli H., Sabaghpourfard A., Chaabane A., Jabbarzadeh A. Optimization-based model of a circular supply chain for coffee waste. Supply Chain Analytics. 2025. № 10. Р. 100126–100144. DOI: https://doi.org/10.1016/j.sca.2025.100126.
Sánchez-García E., Martínez-Falcó J., Marco-Lajara B., Manresa-Marhuenda E. Revolutionizing the circular economy through new technologies: A new era of sustainable progress. Environmental Technology & Innovation. 2024. № 33. Р. 103509–103531. DOI: https://doi.org/10.1016/j.eti.2023.103509.
Colla V., Pietrosanti C., Malfa E., Peters K. Environment 4.0: How digitalization and machine learning can improve the environmental footprint of the steel production processes. Matériaux & Techniques. 2020. Vol. 108. № 5–6. Р. 507–517. DOI: https://doi.org/10.1051/mattech/2021007.
Oláh J., Novotná A., Sarihasan I., Erdei E., Popp J. Examination of the relationship between sustainable Industry 4.0 and business performance. Journal of Competitiveness. 2023. Vol. 14. № 4. P. 25–43. DOI: https://doi.org/10.7441/joc.2022.04.02.
Norouzi M., Chàfer M., Cabeza L. F., Jiménez L., Boer D. Circular economy in the building and construction sector: A scientific evolution analysis. Journal of Building Engineering. 2021. № 44. Р. 102704–102721. DOI: https://doi.org/10.1016/j.jobe.2021.102704.
Revolutionizing packaging with smart sensors and intelligent packaging. SICK Sensor Connection, 2025. URL: https://sickconnect.com/revolutionizing-packaging-with-smart-sensors-and-intelligent-packaging/ (дата звернення: 20.05.2025).
European Union. (2025). EU Green Week 2025: Circular Solutions for a Competitive EU. Available at: https://green-week.event.europa.eu/index_en (accessed 15 June 2025).
Cherniaieva A. (2024) Vykorystannja novitnikh cyfrovykh instrumentiv ta tekhnologhij vedennja biznesu [The use of advanced digital tools and business technologies]. Ekonomika ta suspilstvo, no. 60. DOI: https://doi.org/10.32782/2524-0072/2024-60-89.
Dykoi R. O. (2025) Cyfrova transformacija ekonomiky ta biznesu v umovakh perekhodu do zelenoji ekonomiky [Digital transformation of the economy and business in the transition to a green economy]. European Scientific Journal of Economic and Financial Innovation, no. 2., vol. 16, pp. 82–92. DOI: https://doi.org/10.32750/2025-0208.
Maslak O., Voronovska M., Malyk M. (2025) Modeljuvannja stanu taktychnogho planuvannja v systemi cyrkuljarnykh biznes-modelej pidpryjemstv [Modeling the condition of tactical planning in the system of circular business models of enterprises]. Ekonomichnyi prostir, no. 198, pp. 201–208. DOI: https://doi.org/10.30838/EP.198.201-208.
Kyfyak V., Oliinyk O. (2025). Integhracija pryncypiv cyrkuljarnoji ekonomiky v stalyj rozvytok biznes-modelej aghrarnogho sektoru v umovakh cyfrovizaciji [Іntegration of the principles of the circular economy in the sustainable development of business models of the agricultural sector in the conditions of digitalization]. Ekonomichnyi prostir, no. 197, pp. 38–45. DOI: https://doi.org/10.30838/EP.197.38-45
Kristoffersen E., Blomsma F., Mikalef P., Li J. (2020) The smart circular economy: A digital-enabled circular strategies framework for manufacturing companies. Journal of Business Research, no. 120, pp. 241–261. DOI: https://doi.org/10.1016/j.jbusres.2020.07.044.
Elghaish F., Matarneh S. T., Edwards D. J., Pour Rahimian F., El-Gohary H., Ejohwomu O. (2022) Applications of Industry 4.0 digital technologies towards a construction circular economy: Gap analysis and conceptual framework. Construction Innovation, vol. 22, no. 3, pp. 647–670. DOI: https://doi.org/10.1108/CI-03-2022-0062.
Garcia-Muiña F. E., González-Sánchez R., Ferrari A. M., Settembre-Blundo D. (2018) The paradigms of Industry 4.0 and circular economy as enabling drivers for the competitiveness of businesses and territories: The case of an Italian ceramic tiles manufacturing company. Social Sciences, vol. 7, no. 12, pp. 255–285. DOI: https://doi.org/10.3390/socsci7120255.
Prakash G., Ambedkar K. (2023) Digitalization of manufacturing for implanting value, configuring circularity and achieving sustainability. Journal of Advances in Management Research (JAMR), vol. 20, no. 1, pp. 116–139. DOI: https://doi.org/10.1108/JAMR-01-2022-0010.
Osterwalder A., Pigneur Y. (2010) Aligning profit and purpose through business model innovation. In Palazzo G., Wentland M. (Eds.) Responsible Management Practices for the 21st Century. Paris: Pearson International Editors, pp. 61–75.
Garcia-Muiña F. E., González-Sánchez R., Ferrari A. M., Settembre-Blundo D. (2019) Identifying the equilibrium point between sustainability goals and circular economy practices in an Industry 4.0 manufacturing context using eco-design. Social Sciences, vol. 8, no. 8, pp. 241–262. DOI: https://doi.org/10.3390/socsci8080241.
Koblianska І. (2022) Evoljucija metodologhiji ocinjuvannja zhyttjevogho cyklu: svitovyj ta vitchyznjanyj konteksty [Evolution of life cycle assessment methodology: world and domestic perspective]. Economy and Society, no. 42. DOI: https://doi.org/10.32782/2524-0072/2022-42-27.
Ellen MacArthur Foundation. (2025). Circular economy principles. Available at: https://www.ellenmacarthurfoundation.org/circular-economy-principles (accessed 1 June 2025).
Silva T. H. H. D., Sehnem S. (2024) Industry 4.0 technologies as a motivator for the circular economy in foodtechs: A stakeholder perspective. Sustainable Development, vol. 32, no. 5, pp. 4633–4648. DOI: https://doi.org/10.1002/sd.2921.
Ramakrishna S., Ngowi A., Jager H. D., Awuzie B. O. (2020) Emerging industrial revolution: Symbiosis of Industry 4.0 and circular economy: The role of universities. Science, Technology and Society, vol. 25, no. 3, pp. 505–525. DOI: https://doi.org/10.1177/0971721820912918.
Ingemarsdotter E., Jamsin E., Kortuem G., Balkenende R. (2019) Circular strategies enabled by the Internet of Things – A framework and analysis of current practice. Sustainability, vol. 11, no. 20, pp. 5689–5725. DOI: https://doi.org/10.3390/su11205689.
Bressanelli G., Adrodegari F., Perona M., Saccani N. (2018) Exploring how usage-focused business models enable circular economy through digital technologies. Sustainability, vol. 10, no. 3, pp. 639–659. DOI: https://doi.org/10.3390/su10030639.
Massaro M., Secinaro S., Dal Mas F., Brescia V., Calandra D. (2021) Industry 4.0 and circular economy: An exploratory analysis of academic and practitioners’ perspectives. Business Strategy and the Environment, vol. 30, no. 2, pp. 1213–1231. DOI: https://doi.org/10.1002/bse.2680.
Sun X., Wang X. (2022) Modeling and analyzing the impact of the Internet of Things-based Industry 4.0 on circular economy practices for sustainable development: Evidence from the food processing industry of China. Frontiers in Psychology, no. 13, pp. 866361–866373. DOI: https://doi.org/10.3389/fpsyg.2022.866361.
Talla A., McIlwaine S. (2024) Industry 4.0 and the circular economy: Using design-stage digital technology to reduce construction waste. Smart and Sustainable Built Environment, vol. 13, no. 1, pp. 179–198. DOI: https://doi.org/10.1108/SASBE-03-2022-0050.
Nagatomo D. (2024) Research on education for sustainable development with design-based research by employing Industry 4.0 technologies for the issue of single-use plastic waste in Taiwan. Sustainability, vol. 16, no. 22, pp. 9832–9851. DOI: https://doi.org/10.3390/su16229832.
Esmaeilian B., Sarkis J., Lewis K., Behdad S. (2020) Blockchain for the future of sustainable supply chain management in Industry 4.0. Resources, Conservation and Recycling, no. 163, pp. 105064–105078. DOI: https://doi.org/10.1016/j.resconrec.2020.105064.
Charnley F., Knecht F., Muenkel H., Pletosu D., Rickard V., Sambonet C., Schneider M., Zhang C. (2022) Can digital technologies increase consumer acceptance of circular business models? The case of second hand fashion. Sustainability, vol. 14, no. 8, pp. 4589–4609. DOI: https://doi.org/10.3390/su14084589.
Ali M. U., Khan I., Khan H. (2025) Leveraging Industry 4.0 technologies and industrial symbiosis: Advancing circular economy practices in BRICS economies. Journal of Environmental Management, no. 383, pp. 125471–125481. DOI: https://doi.org/10.1016/j.jenvman.2025.125471.
Krstić M., Agnusdei G. P., Miglietta P. P., Tadić S. (2022) Logistics 4.0 toward circular economy in the agri-food sector. Sustainable Futures, no. 4, pp. 100097–100107. DOI: https://doi.org/10.1016/j.sftr.2022.100097.
Reuter M. A. (2016) Digitalizing the circular economy: Circular economy engineering defined by the metallurgical Internet of Things. Metallurgical and Materials Transactions B, vol. 47, no. 6, pp. 3194–3220. DOI: https://doi.org/10.1007/s11663-016-0735-5.
Kalogiannidis S., Kalfas D., Chatzitheodoridis F., Kontsas S. (2022) The impact of digitalization in supporting the performance of circular economy: A case study of Greece. Journal of Risk and Financial Management, vol. 15, no. 8, pp. 349–366. DOI: https://doi.org/10.3390/jrfm15080349.
Voukkali I., Papamichael I., Economou F., Loizia P., Klontza E., Lekkas D. F., Naddeo V., Zorpas A. A. (2023). Factors affecting social attitude and behavior for the transition towards a circular economy. Sustainable Chemistry and Pharmacy, no. 36, pp. 101276–101286. DOI: https://doi.org/10.1016/j.scp.2023.101276.
Zohourfazeli H., Sabaghpourfard A., Chaabane A., Jabbarzadeh A. (2025) Optimization-based model of a circular supply chain for coffee waste. Supply Chain Analytics, no. 10, pp. 100126–100144. DOI: https://doi.org/10.1016/j.sca.2025.100126.
Sánchez-García E., Martínez-Falcó J., Marco-Lajara B., Manresa-Marhuenda E. (2024) Revolutionizing the circular economy through new technologies: A new era of sustainable progress. Environmental Technology & Innovation, no. 33, pp. 103509–103531. DOI: https://doi.org/10.1016/j.eti.2023.103509.
Colla V., Pietrosanti C., Malfa E., Peters K. (2020) Environment 4.0: How digitalization and machine learning can improve the environmental footprint of the steel production processes. Matériaux & Techniques, vol. 108, no. 5–6, pp. 507–517. DOI: https://doi.org/10.1051/mattech/2021007.
Oláh J., Novotná A., Sarihasan I., Erdei E., Popp J. (2023) Examination of the relationship between sustainable Industry 4.0 and business performance. Journal of Competitiveness, vol. 14, no. 4, pp. 25–43. DOI: https://doi.org/10.7441/joc.2022.04.02.
Norouzi M., Chàfer M., Cabeza L. F., Jiménez L., Boer D. (2021) Circular economy in the building and construction sector: A scientific evolution analysis. Journal of Building Engineering, no. 44, pp. 102704–102721. DOI: https://doi.org/.1016/j.jobe.2021.102704.
SICK Sensor Connection. (2025) Revolutionizing packaging with smart sensors and intelligent packaging. SICK Sensor Connection. Available at: https://sickconnect.com/revolutionizing-packaging-with-smart-sensors-and-intelligent-packaging/ (accessed 20 May 2015).