The Internet of Things and the circular economy: A systematic literature review and research agenda

Abstract

In recent years, the concept of a circular economy (CE) has gained importance and attracted significant attention among scholars and practitioners. Research that examines the role of modern technologies in supporting the transition from a linear economy to the CE is therefore highly needed. This article analyzes and classifies existing research at the intersection of the CE and the Internet of Things (IoT), as an enabling technology. While studies on both concepts have proliferated, there is a lack of research that systematizes the literature and clarifies the relationship between the IoT and the CE. In order to achieve this, we reviewed a total of 170 academic articles published between 2007 and 2021 from the Scopus and Web of Science databases. Based on the coding of keywords, four categories can be identified: (1) IoT-related technologies in the CE context, (2) enablers of IoT in the CE, (3) barriers to IoT adoption in the CE, and (4) the impacts of the IoT on the sustainability of (circular) economies. The current study is the first attempt to use a keyword coding approach to better understand IoT research in the CE domain. The review findings identify important drivers and enablers and provide a structured framework for research in this field. Finally, this study highlights several research directions that may provide valuable insights for researchers and practitioners.