Digital Business and Innovation Journal
Vol 1 No 1 (2026): Digital Business and Innovation Journal (DIBI)

Sustainable Digital Business Innovation: Integrating Circular Economy and Industry 4.0 Paradigms

Fahri La Ilu (Universitas Muhammadiyah Makasar)
Abdul Salam (Universitas Islam Negeri Kendari)



Article Info

Publish Date
30 Aug 2026

Abstract

Sustainable Digital Business Innovation: Integrating Circular Economy and Industry 4.0 Paradigms. The modern global business landscape is undergoing an unprecedented and complex twin transition, driven by the rapid, disruptive development of Industry 4.0 technologies and the critical, existential need for sustainable Circular Economy (CE) models. As ecological crises deepen and resource scarcity threatens traditional linear economic models (take-make-dispose), organizations are compelled to innovate. Simultaneously, the digital revolution offers tools of unprecedented power. This comprehensive study conducts an in-depth Systematic Literature Review (SLR) to thoroughly explore the intersection of these two macro-paradigms and their profound impact on digital business innovation. Analyzing an extensive body of contemporary research, this paper meticulously identifies how advanced technologies—such as the Internet of Things (IoT), Big Data Analytics (BDA), Artificial Intelligence (AI), Blockchain, Digital Twins, and Cyber-Physical Systems (CPS)—act as fundamental catalysts for sustainable business model innovation. These technologies enable unprecedented resource efficiency, extended product lifecycles, closed-loop supply chains, and the dematerialization of value propositions through servitization. The expanded findings present a highly detailed conceptual framework mapping specific technological enablers to the 9R Circular Economy strategies (Refuse, Rethink, Reduce, Reuse, Repair, Refurbish, Remanufacture, Repurpose, Recycle, Recover). Furthermore, the study outlines the primary multidimensional barriers—organizational, financial, technological, and regulatory—inhibiting this integration. Ultimately, the study provides significant theoretical advancements and actionable practical contributions to guide managers, industry leaders, and policymakers in leveraging technology-enabled transformations to achieve resilient, sustainable competitive advantage in the 21st century.

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Journal Info

Abbrev

dibi

Publisher

Subject

Description

Digital Business and Innovation Journal (DIBI) is a peer-reviewed scientific journal published by Lembaga Penelitian dan Pendidikan (LPP) Mandala. The journal was first published in 2026 and is published 4 issues per year (March, June, September dan December) in an online format. DIBI provides a ...