UNVEILING THE LINK BETWEEN DIGITILIZATION AND PERFORMANCE OF THE CIRCULAR ECONOMY: INSIGHTS FROM THE FOOD SECTOR IN BRADFORD

Abstract

Digitalization holds significant potential for optimizing the performance of global economic systems by maximizing the efficient utilization of resources within production frameworks. Despite this potential, there has been a notable lack of exploration into the specific effect of digitalization in increasing the performance of the circular economies. This study is an attempt to fulfil this gap by exploring the direct effect of digitalization on the performance of circular economy models.

Utilizing a quantitative approach, data was collected from twenty respondents via an online questionnaire, targeting entrepreneurs, employees, and investors within the food sector of Bradford-based companies. Regression analysis was employed to assess the association among digitalization and the enactment of circular economy models. Results from the regression analysis indicate a significant and positive impact of both digital practices for sustainability and digital business innovations on circular economy business models. Furthermore, the study underscores the role of circular economy models in resource conservation through material recycling and product lifespan extension. It highlights the overarching objective of circular economies to maximize the economic value derived from production systems globally. Across various firms, innovative business practices facilitated by digitalization are being leveraged to optimize resource utilization effectively.

Existing literature corroborates the notion that the adoption of innovative business practices contributes to enhanced performance within circular economies. Digitalization emerges as a key driver for the development of models of circular economy, particularly within the Bradford region. These findings underscore the transformative potential of digitalization in shaping the future of circular economy frameworks, ultimately driving sustainability and efficiency within economic systems.