Critical success factors for linking digital technologies and circular supply chains

Abstract

Circular supply chains (CSCs) refer to the process of collecting used products from consumers and repurposing them through remanufacturing, recycling, renovation, and repair. Digital technologies have the potential to perform a crucial role in enhancing these processes and achieving sustainable development goals (SDGs). Therefore, exploring the factors that link digital technologies and CSCs is essential. This study identifies and analyzes the critical success factors (CSFs) associated with integrating digital technologies in CSCs. The study utilized a grey Decision‐Making Trial and Evaluation Laboratory (DEMATEL) to identify and analyze CSFs. The initial set of CSFs was derived from existing literature and further refined based on expert opinions. The findings from the study reflect that the top five CSFs for linking digital technologies and CSCs were identified as the organizational commitment toward digitization, adoption of modern technologies, support from top administration toward digitization, adoption of contemporary business models, and data‐driven modernization toward CSCs. The study also revealed that out of the 24 identified CSFs, 11 were associated with the “causal group” while the remaining 13 were associated with the “effect group.” The integration of digital technologies in CSCs has been found to significantly enhance organizational effectiveness. However, there is a paucity of studies analyzing CSFs for linking digital technologies and CSCs. This study fills this research gap and contributes to the frame of knowledge in the domain of CSCs.