ABSTRACT
In this chapter, we investigate how firms use digital affordances to enable circular and digital business model implementation in a wider economic transition towards circularity. We aim at demonstrating the action potentials of digital technology – digital affordances – as solutions to circular business model implementation challenges and as the catalysts for the circular business model implementation and of the transition towards the circular economy. With empirical evidence from 20 firms with a digital technology-enabled circular business model, this study analyses how the use of digital affordances assists firms in overcoming typical circular business model implementation challenges. First, the chapter identifies four main categories of digital affordances: information provision, market intermediation, supply chain enhancement, and institutional legitimation. Then, it analyses the four affordance categories through a socio-technical systems lens to better understand the roles of technology and actors in technology-enabled circular economy business models. Finally, the selected empirical evidence for socio-technical system affording four circular resource flow strategies (narrowing, slowing, closing, and regenerating) is presented, and practical implications are suggested. This chapter contributes to the literature on digital affordances and circular business models, providing practical implications for circular business model development. This chapter concludes with potential future research avenues for accelerating the circular economy transition.
