Advancing Circular Business Models through Big Data and Technological Integration: Pathways for Sustainable Value Creation

Abstract

The global transition toward sustainable development has intensified research on circular business models (CBMs) as mechanisms for economic, social, and environmental value creation. This study synthesizes existing literature on CBMs and explores the intersection of technology, big data analytics, and circular economy principles. Circular business models aim to decouple economic growth from resource consumption by promoting strategies such as product life extension, resource recovery, and service-based value delivery (Geissdoerfer, Vladimirova, & Evans, 2018; Frishammar & Parida, 2019). While numerous typologies and frameworks have been proposed, the integration of digital technologies remains underexplored in systematically advancing CBM implementation (Ellen MacArthur Foundation, 2019; Gupta et al., 2018). This research adopts a qualitative literature synthesis approach, drawing on 30 seminal and recent publications that address sustainable business models, circular economy tools, and technology-enabled business innovations. The study identifies the mechanisms through which big data, artificial intelligence, and cloud-based manufacturing systems enhance circularity by improving resource tracking, predictive maintenance, and lifecycle optimization (Grover et al., 2018; Fisher et al., 2018). Results suggest that CBMs benefit from a hybridized approach that combines traditional sustainability strategies with digital transformation, enabling firms to navigate complex supply chains, manage critical material scarcity, and foster stakeholder engagement (Gaustad et al., 2018; Hopkinson et al., 2018). The discussion elaborates on the theoretical implications of CBM digitalization, highlighting the role of data-driven decision-making in sustaining competitive advantage while addressing environmental imperatives. Limitations include the predominance of secondary data analysis and the need for empirical validation across industries and geographies. Future research directions involve the development of quantitative frameworks to measure circularity impact, longitudinal studies on CBM performance, and policy integration strategies that harmonize technological adoption with regulatory incentives (Wasserbaur, Sakao, & Milios, 2022; Kanther, 2025). This article contributes to the scholarship on sustainable business models by emphasizing the strategic integration of technology and circular economy principles, offering a roadmap for researchers, practitioners, and policymakers committed to sustainable industrial transformation.