Twin Transformation: Synergies between Circular Economy and Internet of Things: A study of Danish Manufacturers

The relation between digital technologies of the industry 4.0 agenda and the circular economy agenda is being coined as mutually beneficial in the twin transformation agenda. However, the agenda is in a pre-paradigmatic stage in which the dual relationship between the two constituting constructs is primarily argued for at a conceptual level. At the same time, manufacturers are challenged in building sustained performance improvements from either transformation. Therefore, this study adopts the multiple case study methodology for investigating the synergetic relation between the internet of things and the circular economy in ten Danish manufacturers as the two constituting constructs of the twin transformation agenda. Accordingly, this study proposes two empirically based propositions for the synergetic relationship between the two: The internet of things enables the circular economy engagement from the cumulative build-up of data and know-how. At the same time, the value and purpose of digital technology are elevated to a strategic perspective when adopting circular economy as a design parameter.