Articulo 3

Received: 16 March 2021 Revised: 16 September 2021 Accepted: 16 September 2021
DOI: 10.1002/bse.3099
SPECIAL ISSUE ARTICLE
Application of digital technologies for sustainable product

management in a circular economy: A review
Magdalena Rusch | Josef-Peter Schöggl | Rupert J. Baumgartner
Christian Doppler Laboratory for Sustainable

Product Management enabling a Circular Abstract
Economy; Institute of Systems Sciences, Digital technologies (DTs), such as the Internet of Things, big data, artificial intelli-
Innovation and Sustainability Research,
University of Graz, Graz, Austria gence, or blockchain, are considered as enablers for a more sustainable and circular
economy. So far, literature on these topics has mostly focused on specific DTs and
Correspondence
Magdalena Rusch, Christian Doppler subareas of sustainable product management (SPM). The aim of this paper is to pro-
Laboratory for Sustainable Product vide a more comprehensive overview of current and potential examples of DT appli-
Management enabling a Circular Economy;
Institute of Systems Sciences, Innovation and cations in SPM (e.g., product design/assessment, supply chain management, and
Sustainability Research, University of Graz, business models). The collected examples (n = 146) were analyzed based on a sys-
Merangasse 18/II, 8010 Graz, Austria.
Email: magdalena.rusch@uni-graz.at tematic literature review, using quantitative and qualitative content analysis. Deduc-
tive and inductive analyses of the examples revealed the potential of DTs in terms of
Funding information
Christian Doppler Research Association; their usability along the product life cycle, their role as enablers for circular economy
National Foundation for Research, Technology strategies and in specific SPM activities. DT application often entails only incremental
and Development; Austrian Federal Ministry
for Digital and Economic Affairs; University of improvements, for example, increased efficiency of existing processes, with more
Graz radical forms of improvement remaining relatively scarce. There is clear room for
greater adoption and optimization of DTs, in various areas of SPM, so as to acceler-
ate the transition towards a more sustainable and circular economy.
KEYWORDS
circular economy, digitalization, eco design, LCA, sustainability, sustainable product
development
1 | I N T RO DU CT I O N technologies (DTs), may be perceived as a facilitator in the current

knowledge-based society (Manavalan & Jayakrishna, 2019;
Information and knowledge have become indispensable resources in Weckenmann et al., 2019). Advanced and potentially disruptive appli-
supporting modern social progress and economic development cations from Industry 4.0 (Kouhizadeh et al., 2020) are, for example,
(Weckenmann et al., 2019). Industry 4.0, as a blend of new digital the emergence of the Internet of Things (IoT), artificial intelligence
(AI), big data analytics, or blockchain technology—collectively known
Abbreviations: AI, artificial intelligence; BOL, beginning‐of‐life; CBMs, circular business as DTs (European Commission [EC], 2020; Kristoffersen et al., 2019).
models; CE, circular economy; DTs, digital technologies; EC, European Commission; EMF, They play an increasingly vital role in the transition towards a more
Ellen MacArthur Foundation; EOL, end‐of‐life; Freq., frequency; IoT, Internet of Things; LCA,
life cycle assessment; LCI, life cycle inventory; MOL, middle‐of‐life; PLCD, product life cycle
sustainable and circular economy (CE) (Pagoropoulos et al., 2017), for
data; PSS, product–service systems; ReSOLVE, regenerate, share, optimize, loop, virtualize, example, by enabling innovative ways of monitoring and optimizing
and exchange; RQs, research questions; SCM, supply chain management; SPM, sustainable
product performances (Rosa et al., 2020) and improving the quality of
product management; SSCM, sustainable supply chain management; UNEP, United Nations
Environment Programme; WBCSD, World Business Council for Sustainable Development. product management over time (Rocca et al., 2020). In the EU's CE
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1160 RUSCH ET AL.
action plan it is stated that the use of those four DTs (IoT, AI, big data, The study's main contribution concerns the review and categori-
and blockchain) will contribute to “[…] a closer relationship with cus- zation of DT applications that have already been identified as useful
tomers, mass customisation, the sharing and collaborative economy” in SPM. First, the extent to which DTs may support the implementa-
(p. 2) which can then contribute to an acceleration of product and tion of different CE strategies is described. Second, the product life
resource circularity and the dematerialization of the economy cycle phases in which DTs exhibit their greatest potential are shown,
(EC, 2020). The CE and Industry 4.0 requirements are pushing compa- as is how they can support product life cycle management. More spe-
nies to invest in DTs in order to make information available through- cifically, the analysis reveals how DTs can benefit different areas and
out product life cycles (Awan et al., 2021). For example, information specific activities of SPM at the operational level of a firm. Through-
about the original design specifications of a product can be used to out, a distinction is made between conceptual and existing cases, that
facilitate different R-strategies1 like reuse, repair, or recycling (Yang is, between “potentials” and “applications.” This serves to provide an
et al., 2018). However, acquiring the requisite data is often difficult estimate of DT implementation. The study is thus intended to help
(Kouhizadeh et al., 2020; Rocca et al., 2020). So far, most companies pinpoint how DTs may be used in future, to help make products more
have not yet developed the necessary “digital maturity,” and the req- circular and more sustainable.
uisite information flows have not yet been well defined or established The remainder of this paper is structured in the following way:
(Ingemarsdotter et al., 2020; Kurilova-Palisaitiene et al., 2015). Never- Section 2 provides the theoretical background on CE, SPM, and a brief
theless, research shows that DTs do enable circular business models introduction concerning the included DTs. The methods used are
(CBMs) that foster various R-strategies and allow for a greater strate- described in Section 3. The results from the quantitative and qualita-
gic fit between customers, coproviders, and stakeholders (Bressanelli tive content analysis are presented in Section 4. This is done by show-
et al., 2018; Ranta et al., 2021) and they are used to facilitate the ing the collected and categorized DT examples. The results are
implementation of product–service systems (PSS) (Ingemarsdotter discussed in Section 5. Finally, in Section 6, conclusions and manage-
et al., 2020). Although, at the product level, research on Industry 4.0 rial implications are derived, and the study's limitations are presented.
and on sustainability may be viewed as two independent fields, inter-
est in the intersection of the two fields is growing (Beltrami
et al., 2021; Rosa et al., 2020). In particular, the number of studies on 2 | THEORETICAL BACKGROUND
the intersection of Industry 4.0, DTs, and CE has recently grown con-
siderably (Cagno et al., 2021; Massaro et al., 2021; Pagoropoulos This section introduces the concepts and DTs used in this study. First,
et al., 2017). However, while several of these studies describe the an outline of the CE concept and the six corresponding CE strategies
potential of specific DTs in certain CE strategies (e.g., Ingemarsdotter from the ReSOLVE framework is given. The conceptual focus then
et al., 2020; Lopes de Sousa Jabbour et al., 2018) or describe initial shifts to a broader sustainability perspective, which is the paper's main
cases of successful implementation (e.g., Nobre & Tavares, 2017), a focus. Finally, definitions of the four DTs used in this study (AI, big
comprehensive and comparative review of DTs in sustainable product data, IoT, and blockchain) are provided.
management (SPM) is still lacking. Moreover, the studies that focus on
the CE in general (e.g., Bressanelli et al., 2018), or on specific aspects
of it (e.g. Garrido-Hidalgo et al., 2020), often do not adopt a suffi- 2.1 | Circular economy and the ReSOLVE
ciently broad perspective, and in particular, tend to neglect the social framework
dimension of sustainability.
This study sets out to provide a comprehensive overview of In today's linear economy, the lack of a comprehensive and integrated
where and how different DTs can support companies in their circular view of products' physical life cycles leads to products being designed
and SPM efforts. Applying this wider SPM lens allows for new insights and used in an unsustainable way (Geissdoerfer et al., 2017; Mayer
regarding DT potential in moving towards a CE and improving sustain- et al., 2018). One alternative to the linear economy now gaining
able product design, sustainability assessment (including the social momentum in business, politics, and academia is the concept of a CE
dimension), or sustainable supply chain management (SSCM). Thus, (EC, 2020; Ellen MacArthur Foundation [EMF], 2015; Schöggl
this study addresses the following two research questions (RQs): et al., 2020). In a CE, material flows are supposed to preserve their
highest value as long as possible and to circulate in loops within the
RQ 1: What potential or existing applications of DTs for SPM are economy in order to minimize waste and negative environmental
described in the literature? impacts (Kirchherr et al., 2017).
RQ 2: How could the utilization of DTs facilitate SPM in a CE? The ReSOLVE framework (EMF, 2015) can help operationalize
the concept of a CE by categorizing the different business opportuni-
ties needed in the generation of circularity strategies. This framework,
used in one of the analyses in this paper, includes the following circu-
1
This study follows the value-retention options (also called R-hierarchy, R-imperatives, or larity strategies: regenerate, share, optimize, loop, virtualize, and
simply R's) established by Reike et al. (2018): R0 refuse, R1 reduce, R2 reuse/resell, R3 repair,
exchange (see Appendix B in the Supporting Information for a descrip-
R4 refurbish, R5 remanufacture, R6 repurpose, R7 recycle materials, R8 recover energy, and
R9 re-mine. tion of each ReSOLVE strategy). Previous literature, for example,
RUSCH ET AL. 1161
Lopes de Sousa Jabbour et al. (2018), examines how applications from the different phases of a physical product life, and they can be sum-
Industry 4.0 interplay with the ReSOLVE framework and sustainable marized under three main stages: beginning-of-life (BOL), middle-of-
operations management. Kouhizadeh et al. (2020) use the ReSOLVE life (MOL), and end-of-life (EOL) (Terzi et al., 2010).
framework to explore how specific (critical) technologies in an Indus- The product and material information flows at the BOL stage are
try 4.0, such as blockchain technology, could transform and advance quite complete as various information systems such as computer-
the realization of a CE. However, current barriers impeding the aided design, or product data management are already in place
operationalization of a CE include, for example, the lack of informa- (Vadoudi et al., 2014). After the BOL phase, the product and material-
tion concerning a product's life cycle, or the lack of technological related information become vaguer and insufficiently managed
know-how with respect to product design or integration in product (Vadoudi et al., 2014). A closed-loop and comprehensive flow of prod-
development (Chauhan et al., 2021; de Jesus & Mendonça, 2018; uct and material information is imperative for implementing SPM.
Kirchherr et al., 2018). Thus, companies need to manage every single stage in which products
are handled and distributed (Garrido-Hidalgo et al., 2019). However,
the need to manage downstream product flows (manufacturer to the
2.2 | Sustainable product management customer) and upstream flows (customer to manufacturer) with multi-
ple value-retention options is generating an increasing number of
While the concept of a CE has witnessed a considerable boom in both uncertainties for organizations (Garrido-Hidalgo et al., 2019; Jerbia
theory and practice in recent years, it should not be considered as a et al., 2018).
new sustainability paradigm (Geissdoerfer et al., 2017), but rather as
one of several complementary strategies for achieving sustainability
(Geissdoerfer et al., 2017; Schöggl et al., 2020). This has become evi- 2.3 | Digital technologies
dent in a growing number of publications that show that both CE
research (Korhonen et al., 2018; Murray et al., 2017; Schöggl DTs have already encouraged a paradigm shift in industrial production
et al., 2020) and CE practice (Stumpf et al., 2021) tend to fall short (Kristoffersen et al., 2019). In general, the availability of technical solu-
when it comes to establishing a comprehensive approach towards tions can be considered as a facilitator in the economy's demateriali-
sustainability. However, as it is the specific intention of the present zation (EC, 2020). The development towards a CE is thus also reliant
paper to focus on a comprehensive approach, we adopt the term on a wide array of technologies (de Jesus & Mendonça, 2018;
SPM. This is used throughout the text. Unlike CE, SPM is not an Pagoropoulos et al., 2017). According to the EU's CE action plan
established concept. Instead, it represents an umbrella term for sev- (EC, 2020) and the European Circular Economy Research Alliance
eral established concepts underpinning comprehensive sustainability- (Berg et al., 2020), the use of IoT, big data, AI, and blockchain offers
oriented management at the product level. Examples of such great potential for increasing the sustainability and circularity of prod-
established concepts/practices, besides CE, are SSCM (Seuring & ucts and resources. We thus focus on these four technologies in the
Müller, 2008), eco design (Brezet & van Hemel, 1997), design for sus- present study.
tainability (Ceschin & Gaziulusoy, 2016; Spangenberg et al., 2010),
and sustainability assessment (e.g., life cycle assessment [LCA], 1. The IoT provides new communication capabilities, increasing
ISO, 2006; or social LCA, United Nations Environment Programme device interconnectedness, and leads to the formation of new
[UNEP], 2020). information networks (Garrido-Hidalgo et al., 2019). IoT is one of
For organizations, the goal of SPM is to investigate under which the most crucial Industry 4.0 applications improving CE perfor-
conditions their products or services are designed, produced, and used mance parameters and helping to achieve CBMs (Chauhan
to maximize sustainability performance and its circularity. In this et al., 2021). As identified by Atzori et al. (2010), the IoT can be
regard, making informed decisions means that product sustainability realized in three paradigms: internet oriented (middleware), things
and circularity performance need to be assessed on a case-specific oriented (sensors), and semantic oriented (knowledge), and their
level. Such endeavors tend to be highly context dependent and their alignment is central to the usefulness of the IoT (Gubbi
management is often counterintuitive (Främling et al., 2013). Tracking et al., 2013).
each step of a supply chain and carrying out sustainability assess- 2. AI generally refers to technologies that are capable of performing
ments entail considerable time, data and effort (Belaud et al., 2019). certain tasks as well as, or better than, humans (Vinuesa
Also, using sustainability assessment results for developing sustain- et al., 2020), such as machine learning and deep learning
able products is not always a straightforward task and can be seen as (Copeland, 2016).
a “multi-criteria decision problem” which inter alia needs increased 3. Big data analytics refers to the strategy of analyzing large quanti-
transparency of design solutions to allow for better-informed decision ties of data that can be distinguished by their volume, variety,
making (Buchert et al., 2019). SPM practices share a comprehensive velocity, veracity, variability, and value (Sivarajah et al., 2017).
life cycle perspective and involve an inherent dependency on 4. The most recent DT is blockchain technology, a distributed ledger
exchanging material and product-related information (Främling database that records transaction data and other information. It is
et al., 2013; Vadoudi et al., 2014). A life cycle perspective relates to characterized as a chain of time-stamped and cryptographically
1162 RUSCH ET AL.
secured digital information that facilitates reliable, decentralized cycle analysis, eco design, [green/sustainable] supply chain manage-
data sharing (S. Li et al., 2020). ment [SCM], industrial ecology, and life cycle management) and DT
terms (i.e., IoT, big data, blockchain, artificial intelligence, and Industry
4.0) were used to identify the articles. Figure 1 shows the selection pro-
3 | METHODS cess and the number of documents found in each research step.
The first step entailed identifying those articles containing the
The present exploratory research study combines a keyword-based designated keywords (at least one sustainability term and one DT
systematic literature review (Okoli & Schabram, 2010) with quantita- term) in the article's title, keywords, or abstract. After removing the
tive and qualitative content analyses of selected papers. The main ele- duplicates, 233 out of 375 articles remained for further investigation.
ments and processes are described in Figure 1, and more detailed Automatic coding via the function “extended lexical search” in
material (including the keyword string) can be found in Table A1. A MAXQDA was applied using the same keywords to screen the full
keyword search process in literature databases is particularly suitable text of the articles. Documents, where none of the DTs were stated
for covering a specific topic addressed across a variety of academic explicitly in the main text of the article, were excluded from the sam-
fields or journals (Seuring & Gold, 2012). First, the resulting literature ple (n = 33). Second, the automated coding function (based on the
sample was analyzed quantitatively, and second, qualitative content extended lexical search) and an abstract screening process were used
analysis was then used for a subset of the sample. Qualitative content to eliminate articles which did not focus explicitly on DTs (i.e., those
analysis is an effective means of conducting literature reviews trans- which used DT terms less than five times) (n = 46). The March 2019
parently and systematically (Fink, 2005; Seuring & Gold, 2012). It is procedure was repeated in July 2020 in order to include more recent
based on the approach described by Mayring (2014). Mayring (2014) publications in the field. In total, 186 articles (154 articles from March
describes three forms of interpretation, one of which, “structuring,” 2019 and an additional 32 articles from July 2020) were used for the
was applied in the present study to filter out particular aspects of the qualitative content analysis.
papers' content (p. 64).
3.2 | Paper analysis

3.1 | Paper selection
The quantitative analysis was performed using the “R” statistical pro-
Using the Scopus database, two rounds of data collection were under- gram version 4.0.2 (R Core Team, 2019) and Excel sheets. For the
taken for the literature review. Three hundred seventy-five articles qualitative content analysis, conducted in MAXQDA, a combination of
were found in the search process from March 1–4, 2019. This sample deductive and inductive coding was used (see Figure B1 in the
was used for the qualitative analysis of the papers. In a later search, on Supporting Information). First, the 186 documents were read and ana-
July 29, 2020, using the same search queries, 619 articles (including lyzed to collect potential (conceptual) or application (already
duplicates due to overlaps between the categories) were found (see implemented or case study) examples of DTs used for SPM. This step
Tables A2 and A3). New papers were added to the sample from 2019, resulted in a collection of 146 examples that were further categorized
and the overall distribution of published papers could be compared. in terms of the DT mainly employed (i.e., big data analytics, IoT,
Sustainability terms (i.e., CE, product lifecycle management, LCA, life blockchain technology, and AI) and the life cycle stages addressed
FIGURE 1 Flow of information through the different phases of a systematic review (own representation based on Moher et al., 2009, p. 3)
RUSCH ET AL. 1163
F I G U R E 2 Categorization of documents per sustainability and digital technology terms (n = 619). Abbreviations: IoT, Internet of Things; AI,
artificial intelligence; SCM, supply chain management
(BOL, MOL, and EOL—multiple selection possible). Furthermore, the these rounds, initial coding by one of the present authors served as
DT examples were categorized by using the ReSOLVE framework. input; then, the two other coders reviewed the coding process, and the
The ReSOLVE framework was chosen, first, because of its concise, results were discussed. This approach was used for the inductive cod-
yet differentiated collection of CE strategies. Second, as outlined in ing approach and categorization of the DT examples.
Section 2.1, the framework was also the most frequently used classifi-
cation scheme in previous conceptual studies on the role of DTs for
CE. This enables comparisons between the findings. The allocation of 4 | RE SU LT S
the examples to one of the six CE strategies (regenerate, share, opti-
mize, loop, virtualize, and exchange) was done based on best fit to The results section progresses from general to specific insights. First,
example descriptions. Finally, an inductive coding approach was used the literature development of the field is illustrated in Section 4.1.
to identify and categorize which SPM areas, outcomes, or aspects can Then, the role of DTs as enablers in the six general ReSOLVE strate-
benefit from the application of DTs. gies (Section 4.2) and their usability in three different product life
cycle phases are described (Section 4.3). Finally, using the wider lens
of SPM (as described in Section 2.2), the specific benefits of DTs in
3.3 | Quality criteria different areas are discussed (Section 4.5).
Adequate transparency and documentation of the research steps was

ensured by providing the keywords and search strings that were used 4.1 | Development of the literature
for the Scopus data collection (Appendix A). The deductive and induc-
tive coding approaches were disclosed and illustrated (Appendix B in The overall distribution and number of documents found by combin-
the Supporting Information), and a thorough review protocol, including ing each sustainability and each DT term can be seen in Figure 2. In
the 146 identified examples, was compiled. Additionally, other terms of the prevalence of the different DTs in the 619 papers, IoT
researchers reviewed the search terms and database. Two independent was the search term that was referred to the most (159 documents),
coders allocated the examples to the ReSOLVE strategies (Section 4.2). followed by AI2 (145 documents) and big data (135 documents). In the
The ex post agreement between the two coders was measured using
Cohen's kappa (Lombard, 2002) and was found to be 0.89, which 2
While AI was the second most frequently used keyword, the detailed qualitative analyses
according to Landis and Koch's (1977) classification scheme represents (presented in Sections 4.2–4.5) revealed that frequent occurrence of this keyword does not
reflect the prevalence of AI-related research. Apparently, the keyword AI was frequently
an “almost perfect” overlap. The allocation to the remaining categories assigned wrongly to papers that do not even mention AI technology but only use references
was done in three joint discussion rounds (see Sections 4.3–4.5). For that have the word “Artificial Intelligence” in the title.
1164 RUSCH ET AL.
sustainability field, most articles were found for SSCM (132 docu-
ments), CE (123 documents), and life cycle management (114 docu-
ments). The highest bars in Figure 2 show the most prevalent
combination of search terms. CE was often combined with Industry
4.0 (43 documents) and also with IoT (40 documents). The keyword
combination LCA with AI resulted in 37 documents. In the SSCM field,
all DT terms were used almost equally often. The combination of the
keywords life cycle management and IoT resulted in 39 documents.
Life cycle management combined with big data resulted in
36 documents
A very high increase of articles was observed using the terms
blockchain and Industry 4.0 (Figure 3) as well as CE and SSCM
(Figure 4). For example, from March 2019 to July 2020, the number
of articles related to blockchain technology increased from 7 to
53 articles, and by using the term Industry 4.0, the results increased
from 52 to 127 articles.
In addition, a popular keyword used in the literature is CE. For
this, there was an increase from 45 to 123 studies. Also, the number
F I G U R E 3 Aggregated Scopus search results for digital
of articles found using the search term SSCM increased significantly technology terms. The inner circle shows the number of articles found
from 55 to 132 (Figure 4). on March 1–4, 2019, and the outer circle the results from July
For the qualitative content analysis, the documents from the liter- 29, 2020
ature search processes were condensed to a sample of 186 articles
(154 articles from March 2019 and an additional 32 articles from July
2020) by eliminating duplicates3 between the categories and selecting
articles with a focus on DT applications for SPM practices (see
Figure 1). The descriptions of the examples varied in their level of
detail, ranging from rather superficial descriptions (e.g., IoT-based
dynamic carbon footprint approach) to very detail-rich descriptions of
concrete DT applications in SPM practice. From a total of 146 exam-
ples, 66 examples were identified where DTs were already being used
by an organization or where a case study was being conducted (here,
and in the following, these are referred to as “applications”). The other
80 examples are only conceptual descriptions of how DTs could be
used for SPM (referred to as “potentials”).
4.2 | Digital technologies and circular economy

strategies
In order to detail DTs' role in the realization of CE strategies, the F I G U R E 4 Aggregated Scopus search results for sustainability
examples examined were allocated to one of the six strategies of the terms. The inner circle shows the number of articles found on March
1–4, 2019, and the outer circle the results from July 29, 2020.
ReSOLVE framework. From the 146 examples, 102 (i.e., more than
Abbreviation: SCM, supply chain management
2/3 of all examples) contributed to the CE strategy “optimize,”
21 examples were allocated to the strategy “loop,” 13 examples to
“virtualize,” 6 examples to “share,” and 4 to “regenerate.” None of detect anomalies in production processes and equipment as indica-
the DT examples in the present study was found to contribute to the tions of potential failures. A notification message is then sent to the
strategy “exchange” (Figure 5). user to prevent critical damage (Kim et al., 2017). An IoT-based
Selected IoT examples (Figure 5a) that contribute to the strategy dynamic carbon footprint approach is suggested in the literature to
“optimize” (freq. = 22) are sensors that can collect real-time data to reduce uncertainties in carbon footprint assessment (Tu et al., 2017).
Big data analytics can enhance the supply chain traceability perfor-
mance which can reduce thousands of hours of accessing, integrating,
3
Overlaps were not eliminated in this first research step because the intention was to get an
and managing product databases that capture products for recall or
overview of which DT is most often associated with which SPM approach. Eliminating the
overlapping documents earlier would have made such an overview impossible. retrofitting (Kaleel Ahmed et al., 2018). For AI, the least examples
RUSCH ET AL. 1165
F I G U R E 5 Classification of
(a) potential (n = 80) and
(b) application (n = 66) examples of
digital technologies allocated to the
circular economy ReSOLVE
framework. Total n = 146.
Abbreviations: Freq., frequency; Re,
regenerate; S, share; O, optimize; L,
loop; V, virtualize; E, exchange; DTs,
digital technologies
were found. This was also confirmed in another recent review (Awan chips or sensors can collect and contain data to inform users of the
et al., 2021). product's components and materials. Also, information on how the
Additionally, there are concrete examples of IoT applications product can be disassembled and recycled at the end of its useful life,
(Figure 5b) (freq. = 20). For instance, Rolls-Royce monitors its prod- for example, in the form of a product passport, can also be included
ucts' engine data for the purpose of extending the life of engines in (Lopes de Sousa Jabbour et al., 2018).
use (Bressanelli et al., 2018). Cisco Energy Management applies IoT For the MOL stage, the use of IoT technology (freq. = 12) can
technology to measure the energy use of products and displays it to provide insights on how households use their appliances, which can
the user so that actions can be taken to improve operational effi- be used to improve product design (Bressanelli et al., 2018). Big data
ciency (Ingemarsdotter et al., 2019). analytics facilitates the prediction of component lifetime and preven-
Blockchain technology is often (freq. = 15) used to optimize busi- tive maintenance (J. Li et al., 2015). It can be used for remote position
ness operations. For example, Ikea uses blockchain technology to reporting and route optimization to improve fleet and distribution
increase supply chain transparency to ensure that purportedly green management, and to enhance productivity by optimizing fuel effi-
products are in fact environmentally friendly (Saberi et al., 2019). In ciency (Kaleel Ahmed et al., 2018).
the automotive sector, General Motors and BMW adopt and apply Blockchain technology (freq. = 9) allows for smart contracts
blockchain technology to share self-driving car data across inter- throughout all stages of the life cycle. These may be especially useful
organizational and intraorganizational platforms (Kouhizadeh for tracking and control (Saberi et al., 2019). Data concerning the
et al., 2020). source of materials and products, the actors involved, the processes,
and the energy consumption provide exemplary forms of information
that can be made available on blockchain ledgers (Kouhizadeh
4.3 | Digital technologies along a product life cycle et al., 2020).
IoT applications were found to be most frequent for the MOL
The potential and applied DT examples were classified based on their stage. In contrast, for the BOL–MOL stages, blockchain applications
point of contribution along a product life cycle (BOL, MOL, EOL, or were the most frequent (Figure 6b).
multiple selections) (Figure 6). Blockchain technology (freq. = 7) is utilized in maritime container
In the current literature, potential examples of how DTs could management in the BOL and MOL stages to have more accurate and
contribute to SPM were often described for the BOL phase using big reliable bills of lading. This is currently done by Maersk, together with
data analytics or IoT (Figure 6a). For the BOL stage, big data analytics IBM (Saberi et al., 2019). Bumble Bee Foods uses this DT for con-
(freq. = 12) was used to create comprehensive supplier profiles in sumers and retailers, who can now access the complete journey and
order to choose qualified suppliers (Kaleel Ahmed et al., 2018). Also, a processing history of yellowfin tuna. BMW also uses such technology
large volume of data can be compared effectively when optimizing for tracking cobalt supplies for electrical vehicle batteries (Kouhizadeh
the development of a new product (e.g., in the conceptual design et al., 2020).
stage) (J. Li et al., 2015). The BOL phase is crucial because original For the MOL phase, IoT technology (freq. = 14) is used to
equipment manufacturers (OEMs) and suppliers can predefine reuse improve service design or product availability and to reduce opera-
or recycle features in the early product development phases (Ge & tional costs. It is currently employed by ZipCar in vehicle management
Jackson, 2014). Incorporating IoT applications into the product for such purposes. The company HP applies IoT technology to moni-
(design) was also mentioned in the literature (freq. = 6). For example, tor printer ink levels and ease the ordering and return of ink
1166 RUSCH ET AL.
F I G U R E 6 Classification of
(a) potential (n = 80) and
(b) application (n = 66) examples of
digital technologies allocated to the
product life cycle stages. Total
n = 146. Abbreviations: Freq.,
frequency; BOL, beginning-of-life;
MOL, middle-of-life; EOL, end-of-life;
DTs, digital technologies
cartridges. The data from products-in-use also supports design for trustworthiness, we collated examples in which DTs overcome bar-
durability. Similarly, the “light-as-a-service” offering from Philips riers to data sharing and exchange. These barriers mainly concern data
includes monitoring product faults in order to manage maintenance confidentiality, actor reluctance or inability to share data, or a lack of
and repairs (Ingemarsdotter et al., 2019). secure and trustworthy data exchange routines. In these confidential-
ity and security related aspects the category trustworthiness also dis-
tinguished itself from the category transparency. Increased
4.4 | Impact of digital technologies on sustainable trustworthiness, for example, may be related to stakeholder use of
product management areas bills of lading for ship containers, the secure data management of digi-
tal twins, or the sharing of car driving data or usage-based insurance.
In addition to the above procedure, an inductive coding approach was The category of efficiency exhibited the highest frequency (freq.
chosen to identify and cluster the most prevalent SPM areas and out- = 82), followed by transparency (freq. = 27) and trustworthiness
comes that may be improved or impacted by the use of DTs. As (freq. = 11). In several cases, insufficient information was available for
explained above, in Section 2.2, the SPM focus in this and the follow- determining a specific SPM outcome as only the general potential of
ing section has been expanded so as to incorporate a more compre- DTs was discussed. For these cases, the category “General potential”
hensive sustainability perspective at the product level. (freq. = 26) was used.
The inductive coding revealed that the DT examples examined Figure 7 illustrates the outcomes per SPM area and DT for the full
could be used specifically in the following four areas of SPM: SCM, dataset of all 146 examples (see Figure B2 in the Supporting Informa-
assessment, business modeling, and product design. When an example tion for the separate analysis of the 80 potential and 66 application
could not be assigned to one of these four specific areas, the category examples). DTs are most frequently described as benefitting SPM in
“SPM general” was used. This term includes the more universal appli- general (overall frequency = 62). Examples for this category are an
cations of DTs, for example, blockchain applications that can effi- IoT-based system that enables data-driven recycling decisions using
ciently validate information digitally, thus potentially supporting all lifecycle information (Kim et al., 2017), the use of IoT sensors to mea-
the beforementioned SPM areas. sure the fill levels of scrap metal bins, and suggestions for optimal
The inductive coding of the SPM outcomes resulted in the three transport routes inside a factory (Mastos et al., 2020). Most of the
categories: efficiency, transparency, and trustworthiness. In this study, examples in this category relate to IoT technology, followed by
the term efficiency is closely related to eco-efficiency which is defined blockchain technology and big data analytics. As illustrated already in
as a “management strategy that combines environmental and eco- Figure 6, especially IoT and blockchain technology applications are
nomic performance” and it means, “doing more with less” (World dispersed throughout the product life cycle stages, and they have a
Business Council for Sustainable Development [WBCSD], 2006, potential for linking two, or even all, life cycle stages. This shows that
p. 16). For example, the improvement of operational efficiency their use is, in many cases, not limited to a specific area of SPM and
(energy use) or the optimization of fuel efficiency in logistics are can provide a more holistic view along the whole product life cycle.
included in this category. The category transparency was used for DT While the use of IoT technology is solely linked with improved opera-
examples that, for example, were used to share design knowledge, tional efficiency, blockchain technology provides, in most cases,
enabled traceability of products and components, or enabled different increased trustworthiness. An example is a blockchain-enabled regu-
forms of condition and location monitoring. Under the term lated recycling service (Liu et al., 2020). Another example is a
RUSCH ET AL. 1167
blockchain-based groceries platform that benefits buyers and aims to models. Most examples of the latter follow a “virtualize” or “loop”
reduce food waste (Teh et al., 2020). strategy (see categories in Figure 5). The use of PSS, as one of several
The second most frequently mentioned area of SPM is (sustain- possible CE strategies, was also found in the literature, for example,
able) SCM (freq. = 34), whereby the use of blockchain technology in Philips “light-as-a-service” offering is enabled by IoT technology
increasing supply chain transparency is most frequently discussed. In (Ingemarsdotter et al., 2019). Finally, some examples (freq. = 14) dis-
addition, the use of IoT and big data analytics can improve supply cuss the general potential of big data analytics and IoT technology in
chain efficiency. product design.
The assessment of products and services (freq. = 21), mainly
regarding environmental aspects, can be supported by IoT technology
in the collection of data along a product life cycle. And also blockchain 4.5 | Use of digital technologies for sustainable
technology is seen as an essential facilitator in this area, as it may product management activities
increase the value chain actors' willingness to share potentially confi-
dential environmental and social data which are needed for such Figure 8 adds an additional layer of detail to the analysis by illustrating
assessments. which specific activities of SPM are (potentially) supported by the use
Regarding the business model (freq. = 15), DTs are primarily of DTs. Out of all 146 examples, 123 provided enough detail for
attested to having a general potential for SPM. Their applications determining a specific SPM activity. As can be seen, AI may be used
range from supporting value creation and capture in existing business to collect and generate life cycle inventory data in an LCA, in supplier
models to enabling new types of value propositions in business selection, in condition monitoring, and in the EOL phase, in order to
F I G U R E 7 Classification of potential and application examples of digital technologies based on the area of application and the improved SPM
outcome (n = 146). Abbreviation: SPM, sustainable product management
F I G U R E 8 Overview of which specific activities of sustainable product management can be supported by which digital technologies. The
shading indicates how many examples relate to a specific activity per technology. Distribution is normalized to 1 by digital technology (i.e., by
row) (n = 123). Abbreviations: SPM, sustainable product management; LCI, life cycle inventory
1168 RUSCH ET AL.
support waste separation and, thus, enable different R-strategies. ensuring the credibility of interorganizational production activities, for
Additionally, an analysis was made of specific SPM activities per SPM example, by allowing for greater security in the exchange of knowl-
area (Figure B3 in the Supporting Information) edge (about the sustainability performance) and services between
IoT sensors have considerable potential for condition monitoring enterprises (Z. Li et al., 2018) without the full provision of sensitive
by capturing data on the real-time status of a product (Y. Zhang, Ren, information leading to undue loss of competitive advantage or trans-
Liu, Sakao, & Huisingh, 2017). These data can then be relayed to the parency (Kouhizadeh et al., 2020). Owing to its greater security, trans-
supply chain stakeholders to identify any potential shipment delays parency, and accuracy, blockchain technology has significant potential
(Manavalan & Jayakrishna, 2019). To enable different R-strategies, for in enabling smart-contracted verifications of sustainability-related
example, where desired, Cisco can track the location and condition of data, thus allowing the development of new and sustainable business
its sports shoes in order to identify customer replacement and models and other business and industrial applications (Chapron, 2017;
upgrade needs. At the end of the life cycle, in a take-back model, con- S. Li et al., 2020).
sumers can return the shoes for remanufacturing to a location close
to their home or work (Nobre & Tavares, 2017).
Additionally, IoT sensors are already frequently used in mainte- 5 | DI SCU SSION
nance and manufacturing operations, even in a proactive sense. For
example, data on aggregated real-time customer applications may be This paper has investigated the various potential and application
used as input to allow for adaptive product calibration so as to better examples of DTs for SPM described in the literature.
match product operating conditions (Ge & Jackson, 2014). A further First, the analysis of the literature shows that the number of stud-
example comes from the company “Whirlpool” which notifies cus- ies about blockchain in conjunction with SPM (Figure 3) increased sig-
tomers concerning upcoming maintenance needs of their washing nificantly from 7, in March 2019, to 53, in July 2020. A significant
machines (Ingemarsdotter et al., 2019). increase in studies was also observed for the terms CE and SSCM in
Furthermore, it can be seen that IoT sensors, big data analytics, conjunction with DT (Figure 4). It is very likely that this strong growth
and blockchain technology all support the monitoring of energy and of research at the intersection of these fields will continue, particularly
waste flows (Bressanelli et al., 2018; Chauhan et al., 2021), inventories since ever more advanced DTs will become available for SPM in the
(Kaleel Ahmed et al., 2018; J. Li et al., 2015), and operations in general next few years.
(Corbett, 2018). In one case, the DTs are used for monitoring working Second, the assessment and allocation of DT examples in terms
conditions (Corbett, 2018) and two cases were found relating to com- of the ReSOLVE framework showed that the “optimize” strategy,
pliance with human rights (Saberi et al., 2019; Teh et al., 2020). Fur- which relates to increasing product performance and efficiency and
thermore, IoT technology is used to monitor product locations and removing waste from production and supply chains, is by far the most
track transport routes, in general, and for reverse logistics, in particu- frequently discussed issue (Figure 5). So far, DTs have often merely
lar. More rarely, it was used for tracking materials (Kouhizadeh been used for incremental improvements. Other ReSOLVE strategies,
et al., 2020; Tao et al., 2018) and for facilitating collaboration in entailing more radical changes, for example, to business models or
manufacturing (Fahmideh & Beydoun, 2019) or the building sector processes, are found much less frequently. One example found for
(Nobre & Tavares, 2017). One application for facilitating collaboration the strategy “share” is that organizations use DTs to facilitate the
was found at Nike. Here, a database was made accessible to designers delivery of products to the same region by sharing transportation
willing to use sustainable materials in their products (Narayan & means. Thus, using DTs to foster closer collaboration between differ-
Tidström, 2020). ent organizations (also outside their current partner networks) is an
As mentioned above, big data analytics is frequently used in main- enabler for the transition towards a CE. More such examples are
tenance activities and in monitoring energy and waste flows. Such needed to encourage stepwise implementation of efficient, transpar-
activities include the prediction of the remaining lifetime of parts or ent, and reliable SPM processes, and thereby accelerate this
components (J. Li et al., 2015), trend mining (Fahmideh & transition.
Beydoun, 2019; Xu et al., 2015; Y. Zhang, Ren, Liu, Sakao, & Third, most of the studies in the sample focus either on one or
Huisingh, 2017), risk assessment (Kaleel Ahmed et al., 2018), and two specific DTs or life cycle phases (e.g., IoT in manufacturing)
reusing distributed design knowledge and information for product (Figure 6). Y. Zhang, Ren, Liu, and Si (2017) stated in their review that
family design and platform-based product development (J. Li “[…] the overall solution for the whole life-cycle is seldom investi-
et al., 2015). gated” (p. 628). Additionally, they reported that solutions for the auto-
The analysis of specific SPM activities reflects the supporting role matic identification and acquisition of product life cycle data (PLCD)
that blockchain technology can have in activities revolving around are deficient. Both points can be confirmed by the present study.
information exchange. It can be used in the exchange of life cycle However, also the management of PLCD is essential to determine the
inventory data throughout the supply chain (Narayan & sustainability implications of products. For instance, Kouhizadeh
Tidström, 2020; Saberi et al., 2019), as well as in condition monitoring et al. (2020) reported that Walmart customers have begun to shift
(Liu et al., 2020), or in carbon emission trading based on smart con- their attention from food nutrition information to food supply chain
tracts (A. Zhang et al., 2020). Blockchain technology can assist in information. Thus, increasing customer awareness is pushing
RUSCH ET AL. 1169
organizations towards pursuing SPM practices and towards rethinking Second, the application of DTs in general management or opera-
current business strategies. tions occurred frequently, for example, using DTs to create new com-
Fourth, the present study finds that SSCM, business models, petitive advantage, grow revenue, or measure the financial impact of
assessment, and product design are the SPM areas that are most decisions before they are made. In most cases, the description of the
often affected by the use of DTs. The ensuing improvements in these utilization of the respective DT for SPM was relatively short, and it
areas were found to cluster around the three issues of efficiency, was not always clear which SPM outcome and area could be
transparency, and trustworthiness between stakeholders (Figure 7). improved. A clear allocation and distinction of the DT examples
However, in order to use DTs in such a way that they benefit these proved challenging, and, thus, two independent coders were used to
SPM areas, the “human-side” (e.g., personal and intraorganizational counteract potential biases in the inductive coding steps. While the
issues) must also be considered. One example stated by Zhou resulting categorizations of the DT examples contribute to a clearer
et al. (2017) was that the increased use of DTs in companies understanding of how they may facilitate SPM, continual research is
required the formation of new departments to collect and process the needed to assess in which sustainability practice DTs can best be
PLCD in order to aid decision making in other departments. The utilized.
level of application and implementation of DTs for SPM is also likely Third, social sustainability topics were underrepresented, with
to be influenced by different factors such as technological only three examples represented in our analysis. Therefore, further
affinity and/or company size. The assessment of the applications studies with an explicit focus on the intersection of DTs or Industry
showed that it is mostly the large corporations which use DTs for 4.0 and social sustainability issues are needed.
their sustainability practices. While examining the reasons for this was Fourth, a more holistic view of the whole product life cycle and
not part of the present study, it remains an interesting topic for further interdisciplinary perspectives on using DTs for SPM can reveal
further research. new application and implementation approaches. For example, the
Fifth, the heatmap with the SPM activities per DT reveals the current technology-driven approaches could be enhanced by empirical
variety of topics covered by the 146 examples found in the present research to further assess the potential of DTs for SPM along the
study (Figure 8). This result expands upon previous studies such as whole life cycle of a product. Such an empirical research approach
that by Nobre and Tavares (2017) which focused on big data and IoT could also help deepening the insights regarding the different DTs
applications in a CE. Their conclusion that these two DTs may be state of implementation in practice.
applied in many different areas of sustainability (e.g., closed-loop Additionally, apart from being a key aspect of SPM, the use of
product lifecycle management, the establishment of sustainable cities, DTs throughout the whole product life cycle has clear managerial
energy grid optimization, ecologically designed products and buildings, implications too. Decisions in the BOL stage can be the enabler for a
and sustainable agriculture) is confirmed in the present study. product's circularity in a later life cycle phase (e.g., by deciding to
While DTs are already widely used for environmental issues, only include product sensors in the design phase) and directly impact the
three studies (Corbett, 2018; Saberi et al., 2019; Teh et al., 2020) potential availability of product data in all the subsequent life cycle
were found where DTs were used to benefit social sustainability stages. Proactive DT approaches are also needed for collecting and
issues. Kouhizadeh et al. (2020) state that the use of DTs for managing product data in the MOL and EOL phases. Data manage-
implementing CE targets has even led to a deterioration in social ment, data sharing, and interorganizational and intraorganizational
sustainability. collaboration—supported by DTs—from BOL to EOL stages are essen-
The creation of novel categorizations for the examples analyzed tial for SPM. The product data that are collected and shared after the
here (see Sections 4.2–4.5) has enabled us to provide a comprehen- BOL phase are particularly important for facilitating the circularity of
sive overview of DT applications with respect to SPM. In the future, resources. However, the value of such data depends on its usage, pur-
our coding scheme could be used to categorize new DT examples that pose, and context. To close the information gap in stages after the
are used for different SPM activities. BOL, one needs to collect data on the (current) status of the product
or material and its availability. This is made possible by employing
real-time monitoring concerning the product condition or location.
6 | C O N CL U S I O N S Smart information collection and exchange ease the circularity of
resources and help generate new competitive advantage. In addition,
We now draw relevant conclusions, address the limitations of the pre- the increased likelihood of future resource scarcity or more stringent
sent study, and outline possible areas of future research. regulations makes this even more true.
First, DTs should not be considered separately from each other. It This study contributes to a clearer understanding of the use of
was found that, in many cases, DTs are not applied as stand-alone but DTs in SPM. Nevertheless, the authors are also aware that this study
as complementary tools. For example, IoT technologies are used to shows certain limitations, for example, in the scope of research (with
collect various data, big data analytics, and AI are used to realize data the selection of certain keywords and the exclusion of others) and the
management or processing and can also be applied to data mining. focus on the scientific literature. Working on more comprehensive
Thus, DTs are most fruitfully employed as complementary tools and holistic data-driven SPM approaches provides a unique opportu-
for SPM. nity to contribute to a more sustainable CE. However, we argue that
1170 RUSCH ET AL.
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RUSCH ET AL. 1173
APP E NDIX A: DETAILED REVIEW PROCESS AND RESULTS
This section of the appendix provides a more detailed description of the keyword-based literature review (Table A1) and more detailed search results
from each of the keyword combinations (Tables A2 and A3).
TABLE A1 Analytic categories of the literature review with results (own representation based on Seuring & Gold, 2012, p. 552)
Description Results
Aim of research Exploring the status quo in the scientific literature of conceptual (potential) and existing applications of DTs for
SPM
Method of data gathering and Keyword research in title, keywords, and abstract in Scopus database on March 1–4, 2019, and July 29, 2020,
source with a focus on peer-reviewed journal articles in English
Search query each SPM term with For example, TITLE-ABS-KEY (“circular econom*” AND “internet of things”)
each DT term
Search query combined TITLE-ABS-KEY
(“circular econom*” OR “sustainable product management” OR “product lifecycle management” OR “life cycle
assessment” OR “life cycle analysis” OR “eco design” OR “green supply chain management” OR “sustain*
supply chain management” OR “industrial ecology” OR “life cycle management” AND “internet of things” OR
“big data” OR “industry 4.0” OR “blockchain” OR “artificial intelligen*”)
Number of publications and time By combining each SPM term with each DT term, 375 articles were found on March 1–4, 2019, in the Scopus
period covered database and 619 journal articles were found on July 29, 2020. With the combined search query, 330 journal
articles (result without duplicates) with publication years ranging from 1989 to 2021 were found in July 2020.
Method and type of data analysis Quantitative analysis in the “R” statistical tool and excel sheets and qualitative content analysis in MAXQDA
(deductive and inductive coding approach)
Abbreviations: DT, digital technology; SPM, sustainable product management.
In Tables A2 and A3, the search results, first from March 1–4, 2019 (Table A2), and second from July 29, 2020 (Table A3), for the keyword
combinations, are shown.
TABLE A2 Search results from March 2019 in the Scopus database
Circular Life cycle Life cycle Eco Green Sustainable Industrial Life cycle
economy PLM assessment analysis design SCM SCM ecology management Sum
IoT 15 25 8 8 0 1 7 2 33 99
Big data 11 13 12 4 0 7 18 7 30 102
Industry 15 11 3 0 1 3 7 0 12 52
4.0
Blockchain 0 0 1 1 0 0 4 0 1 7
AI 4 8 37 24 5 6 19 2 10 115
Sum 45 57 61 37 6 17 55 11 86 375
Abbreviations: AI, artificial intelligence; IoT, internet of things; PLM, product lifecycle management; SCM, supply chain management.
1174 RUSCH ET AL.
TABLE A3 Search results from July 2020 in the Scopus database
Circular Life cycle Life cycle Eco Green Sustainable Industrial Life cycle
economy PLM assessment analysis design SCM SCM ecology management Sum
IoT 40 29 9 7 1 7 24 3 39 159
Big data 16 15 11 8 0 11 31 7 36 135
Industry 43 16 8 4 2 7 27 2 18 127
4.0
Blockchain 10 2 4 3 0 4 25 0 5 53
AI 14 12 37 27 4 10 25 0 16 145
Sum 123 74 69 49 7 39 132 12 114 619
Abbreviations: AI, artificial intelligence; IoT, internet of things; PLM, product lifecycle management; SCM, supply chain management.

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Received: 16 March 2021 Revised: 16 September 2021 Accepted: 16 September 2021

SPECIAL ISSUE ARTICLE

Application of digital technologies for sustainable product

Magdalena Rusch | Josef-Peter Schöggl | Rupert J. Baumgartner

Christian Doppler Laboratory for Sustainable

1 | I N T RO DU CT I O N technologies (DTs), may be perceived as a facilitator in the current

Bus Strat Env. 2023;32:1159–1174. wileyonlinelibrary.com/journal/bse 1159

3.2 | Paper analysis

Adequate transparency and documentation of the research steps was

4.2 | Digital technologies and circular economy

APP E NDIX A: DETAILED REVIEW PROCESS AND RESULTS

Abbreviations: DT, digital technology; SPM, sustainable product management.

TABLE A2 Search results from March 2019 in the Scopus database

TABLE A3 Search results from July 2020 in the Scopus database

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