Disruptive Technology-Enabled Circular Economy for Improving the Sustainability of the Supply Chain: A Case of an Emerging Economy

Introduction

Technological Disruption has been adopted by many industries to improve the effectiveness of their activities and supply chain activities are no exception. Traditional supply chain activities follow the linear economy(LE) model as it generally starts from material extraction and includes the flow of these materials through various processing centers and then to customers and finally to the disposal place after the useful life of the product. LE-based supply chain operations have long been criticized for their unsustainable mode of operations. These supply chain models also are less concerned regarding the quality and amount of energy consumed in the entire process and also who is responsible for the disposal of the waste product after it has reached its life expectancy (Biswal et al 2017; Muduli et al., 2017; Aich et al., 2018). The environmental and social consequences of LE-based supply chain models have faced many public outcries and experiencing pressures from governments, societies, and media houses to operate in a socio-environmental responsible manner. Many prominent researchers have worked on developing ways to make supply chain management more environmentally and financially viable(Abdel-Basset et al., 2021; Awan et al., 2021 ; de Sousa Jabbour et al., 2018). These efforts have led to the emergence of the circular economy concepts. CE involves a process that comprises of recycling waste products sustainably in a cyclic process which illustrates SCM is in a closed-loop (Biswal et al., 2019; Aurora Denial, 2021; Banaitė, 2016; De Souza, 2021; Lacy et al., 2020). In CE, the process is made in a way it changes products as a finite resource and it gives prominence to sustainable energy (conservation measures) and limits the use of harmful substances in manufacturing industries (Dong et al., 2021; Homrich et al., 2018; Urbinati et al., 2017). The application of CE has added value to waste materials by making them reusable after it has been produced and consumed (Daou et al., 2020; Kravchenko et al. 2020). CE is disruptive in a way it outclasses the current production and utilization industry models and targets to create a circular process (Rizos et al., 2016; Zaman et al, 2021)

Digital technology also known as a disruptive technology because of its approach to the manufacturing industry, significantly changes the traditional way operations of the manufacturing industry and substitutes with processes or technology that is much better in terms of socio-environmental performance (Oyekola et al., 2021). Over the last decade, the application of new disruptive technologies has been the game-changer in changing Industries from what they used to be. Manufacturers are focusing on great improvement in the way in which their manufacturing industry functions with the introduction of industry 4.0 (Rajput & Singh, 2019). The inclusion of these technologies into manufacturing operations will require a lot of capital expenditure. There are also several other barriers that Industry 4.0 has to overcome for it to function more smoothly.

Because of an absence of examination into and perception of a solitary performer in a change, this investigation expects to clarify the job of the operation manager who uses modern development to engage the Circular Economy. Moreover, this paper intends to understand how digital technology-enabled CE practices would help develop an effective SSC model and the challenges experienced during the transition process. Thorough knowledge of the relationship between digital technology and circular economy (CE) and its impact on supply chain management could help decision-makers in effective integration of these concepts and establishment of a robust sustainable supply chain(SSC) model powered with CE principles.