Innovating Sustainability: Digital Marketplaces as Catalysts for Circular Economy in Electronic Device Reuse

Abstract

This study delves into the synergy between innovation management, the circular economy, and the development of digital marketplaces, with a particular focus on the reuse of electronic devices. It highlights how digitalisation within the circular economy can spur innovation in managing the reuse of electronic gadgets through digital platforms. Drawing on a robust quantitative analysis of data from over 400 Finnish and Baltic companies, this research is pioneering in its holistic integration of these sectors, addressing the critical need for insights into the operational and managerial dynamics of circular economy digital marketplaces. Employing a comprehensive quantitative approach, our investigation uncovered significant insights regarding the perceived opportunities, challenges, and value-added features of these marketplaces for electronic device reuse. Environmental protection, cost savings, and enhanced recycling opportunities were identified as major advantages by participants. However, the study also pointed out significant barriers to effective marketplace operation, including IT system integration, organisational culture challenges, and resource limitations.

A noteworthy contribution of this research is its elucidation of the influence of company size on engagement in the circular economy, pinpointing large and micro-enterprises as potential pioneers in this domain. It also sheds light on the business-to-business (B2B) dynamics within digital marketplaces, exploring the interactions among sellers, buyers, and service providers. Our findings underscore digital marketplaces as pivotal enablers for sustainable practices in electronic device reuse, whereas digital platforms may expedite the transition towards a circular economy. This aligns with principles of innovation management by promoting collaboration, minimising waste, and fostering new business models. The conclusion emphasises the digital marketplace not just as a platform for transactions but as a vital ecosystem enabler, providing a wide array of value-added services. It underscores the importance for businesses, especially in the electronics sector, to integrate circular economy principles strategically, leveraging digital marketplaces to achieve sustainability goals while gaining competitive advantages. The research has directly influenced the launch of a pilot digital marketplace for electronic product reuse, showcasing the practical application of its findings. This emphasises the study’s role in advancing innovation management practices by demonstrating the transformative potential of digital marketplaces in promoting circular economy practices.