Sustainable Business Model Innovation: The Role of Circular Economy Principles in the Digital Age

Mert Sezer

doi:10.62802/q1g4y076

Authors

Mert Sezer Aiglon College Author https://orcid.org/0009-0005-9537-7111

DOI:

https://doi.org/10.62802/q1g4y076

Keywords:

Sustainable business models, circular economy, digital transformation, innovation, Industry 4.0, ESG integration, resource efficiency

Abstract

The accelerating pace of digital transformation is reshaping how organizations conceptualize and implement sustainability within their business models. This study explores how circular economy (CE) principles—such as resource efficiency, product longevity, and waste valorization—can be embedded into digital business model innovation (BMI) to foster economic resilience and environmental stewardship. Through an integrative framework combining digital technologies (AI, IoT, blockchain) with CE strategies, the research investigates how firms transition from linear value creation to regenerative, data-driven ecosystems. The study also highlights the enabling role of digitalization in material tracking, predictive maintenance, and closed-loop supply chains, emphasizing its potential to decouple growth from resource depletion. Findings suggest that sustainable business model innovation in the digital era requires not only technological adaptation but also organizational learning, stakeholder collaboration, and systemic thinking.

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