Digital Transformation Strategies Driving Circular Economy Practices Among Small Enterprises

Abstract

Digital transformation has become a strategic necessity for enabling small enterprises to implement circular economy practices while improving sustainable business performance. This study examines how digital transformation strategies drive circular economy implementation among small enterprises. A qualitative multiple-case study was employed involving 24 purposively selected informants comprising enterprise owners, digital consultants, government officers, business association representatives, and sustainability experts, with data collected through interviews, observations, and document analysis and analyzed using the Miles, Huberman, and Saldaña interactive model. The findings reveal that digital capability improves resource management efficiency through systematic digital monitoring, data-driven innovation strengthens sustainable managerial decision-making, and collaborative digital ecosystems accelerate circular economy adoption through marketplace-based business integration. This study proposes an integrated qualitative framework linking digital capability, managerial analytics, and collaborative ecosystems. The findings provide strategic guidance for policymakers and enterprise managers in strengthening digitally enabled circular economy implementation.