Digital transformation and the circular economy: Creating a competitiveadvantage from the transition towards Net Zero Manufacturing
Okorie, O; Russell, J; Cherrington, R; et al.Fisher, O; Charnley, F
Date: 11 November 2022
Article
Journal
Resources, Conservation and Recycling
Publisher
Elsevier
Publisher DOI
Abstract
Manufacturers are exploring the extent to which digital technology applications can support their sustainability
efforts by helping to convert abstract sustainability goals, such as those of net-zero emissions and circular
economy (CE), into feasible and practical actions, achievements, and ultimately, a sustainable competitive ...
Manufacturers are exploring the extent to which digital technology applications can support their sustainability
efforts by helping to convert abstract sustainability goals, such as those of net-zero emissions and circular
economy (CE), into feasible and practical actions, achievements, and ultimately, a sustainable competitive edge.
This work adopts a resource-based view (RBV) to explore the potential role that digital technologies play in the
cultivation of a manufacturing firm’s competitive advantage, and the deployment of existing internal resources
and core competencies to achieve net-zero manufacturing emissions and CE. Two questions are addressed: (1)
What competitive advantage(s) may be derived from the integration of digital technologies to achieve net-zero
manufacturing emissions, and (2) does adopting an RBV facilitate the development of meaningful (and novel)
competitive advantage? Engaged scholarship is used to analyse and apply theory to an empirical, real-world
dataset documenting the perspectives and experiences of 13 manufacturing firms. Applying the VRIO frame-
work, 21 identified digital technology-based core competencies are categorised as forms of competitive advan-
tage that may be possible for manufacturing firms pursuing net-zero emissions. Four scenarios of digital
technology adoption pathways are proposed, differentiated by the degree of radical vs. incremental interests and
options available to the firm. This study highlights the critical need for firms to incorporate intangible asset
management and development, including the labour and supply chain relationships, as part of their digital
transformation strategies. Further, we demonstrate the potential of RBV as a lens for evaluating the competitive
advantage potential of corporate sustainability initiatives, and facilitating the development of related strategies.
Engineering
Faculty of Environment, Science and Economy
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