Digital Transformation in Upcycling-based Craft Industry: A Systematic Literature Review Faza Wahmuda (a,b*), Ellya Zulaikha (a), Hadziq Fabroyir (a)
a) Interdiciplinary School Of Management Technology, Sepuluh Nopember Institute of Technology
Jalan Cokroaminoto 12A 60264 Surabaya, Indonesia
b) Institut Teknologi Adhi Tama Surabaya
Abstract
The current digital technology landscape has eased access for various industries, including the craft sector, which is beginning to adopt digital transformation in its business processes. However, the upcycling-based craft industry remains relatively underexplored. This industry involves repurposing unused materials or items to create products with higher added value. This concept aligns with government initiatives related to green industries and the implementation of a circular economy. The upcycling-based craft industry encounters challenges such as limited raw materials, product form exploration, skilled personnel with specialized skills, innovation, and product design development. This research conducts a literature analysis of the upcycling-based craft industry, focusing on five main variables: Digital Transformation (DT), Circular Economy (CE), Product Design and Innovation (PDI), Sustainable Value Creation (SVC), and Upcycling (U). The methodology employs a Systematic Literature Review (SLR), sourcing 105 articles indexed in Scopus from ProQuest and Sciencedirect databases through identification, screening, eligibility, and inclusion phases. The results are analyzed using meta-analyses in NVivo 12 Pro, based on discussion focus and variable relationships in the context of the upcycling-based craft industry. The research findings highlight the significance of research needs in the context of digital transformation to advance upcycling practices. The integration of digital technology into the design, production, and distribution processes can significantly contribute to SVC and PDI. In conclusion, this study identifies potential areas for further research and fills the knowledge gap related to the potential of digital transformation in the upcycling-based craft industry, aligning with the evolving landscape of this industry.
Keywords: craft industry, upcycling, digital transformation, circular economy
