Challenges in Adopting Digital Technologies for Circular Economy Practices in Multinational Companies
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This study examines the technological, organizational and environmental challenges multinational companies encounter when adopting digital technologies to support circular economy practices across international markets. The circular economy refers to an economic model that aims to reduce waste and make better use of resources through practices such as reuse, repair, recycle and extending products life cycles. Digital technologies such as big data analytics, Internet of Things (IoT), blockchain and artificial intelligence are increasingly seen as important tools for enabling these practices on a global scale.
The theoretical framework of the study is guided by the Technology-Organization-Environment (TOE) framework as it provides a structured way to analyze challenges in digital technology adoptions. The study employed a qualitative multiple case study method to gain an in depth understanding of the diverse challenges faced by four multinational companies. Data was collected through semi structured interviews with participants from each case company and publicly available secondary data sources. This allowed the researcher to gather detailed insights into real world experiences and practices.
The findings identified a total of eight key challenges. These include three technological challenges, two organizational challenges and three environmental challenges. The results indicate that technological challenges are the most significant across multinational companies. Overall the study contributes to a better understanding of the challenges of adopting digital technologies for circular economy practices in multinational settings. The findings provide useful insights for managers and practitioners who aim to promote long term sustainability through circular economy initiatives and digital transformation in global organizations.