Conceptual Model for the Assessment of Sustainability in Manufacturing Companies in the Context of Digital Transformation and the Circular Economy
M G Cardoso(a*, b), E Ares (b), L Pinto Ferreira (b,c), Helio Castro (a,d), G Pelaez (b)

a) School of Engineering, Polytechnic of Porto, Porto Portugal
* mon[at]isep.ipp.pt
b) School of Industrial Engineering, University of Vigo, Pontevedra, Spain
c) INEGI, Porto, Portugal
d) INESCTEC, Porto, Portugal

Abstract

In recent times, there has been an increasing need to produce on a large scale to meet the growing demands of consumers. However, it has become increasingly important to be aware of the implications of such production practises and their direct relationship to the global issue of climate change. At the same time, with government mandates and targets now firmly in place, companies are obliged to strategise and implement approaches that enable them to align with these objectives, which are inherently intertwined with the fundamental principles of sustainability encompassing the environmental, economic, and social dimensions. This paper proposes a conceptual framework to analyse the intricate interrelationships between digital transformation and the circular economy, and their profound impact on the three fundamental facets of sustainability. A review of the existing literature has been carried out to inform our research efforts. This preliminary research allows us to identify that the intricate links between Digital Transformation and the Circular Economy, as well as their implications for the dimensions of sustainability, remain ambiguously defined and sometimes blurred amidst divergent sustainability paradigms. To fill this recognised knowledge gap, this study proposes the application of a structural equation model, which serves as a quantitative tool to meticulously measure the influences of digital transformation and the circular economy on the overarching concept of sustainability. In the search for empirical validation of our propositions, we have carefully applied validated questionnaires to companies operating in the Portuguese economic landscape. The results of this research are intended to be a constructive and empirically based contribution to the decision-making processes of business organisations.

Keywords: Sustainability, Digital Transformation, Circular Economy

Topic: Business and Economic