Digital twins as enablers for circular economy development in the context of Industry 4.0

Abstract This article aims to build upon the ongoing discourse on sustainability in the journal Gruppe. Interaktion. Organisation. (GIO), in the special issue “Shaping organizations sustainably.” It empirically investigates how manufacturers leverage digital twins in their operations to enable the development of a circular economy in the context of Industry 4.0. Addressing the challenges of the traditional linear economy, marked by significant resource loss and environmental degradation, the study explores the potential of digital twins, virtual representations of physical systems and their interconnections, to slow and close resource loops and minimize waste. Through qualitative interviews with nine experts, the research provides valuable insights into the strategies and success factors necessary for the effective integration of digital twins into circular economy practices. The findings reveal that achieving full implementation of digital twins for the circular economy has yet to be realized and involves a long-term process requiring technological, organizational, and regulatory adjustments. This article contributes to the broader discussion on organizational sustainability by offering practical recommendations and identifying future research areas to further advance the integration of digital twins into the circular economy, thereby enhancing both operational efficiency and sustainability.