Exploring the role of digitalization as a driver for the adoption of circular economy principles in agrifood SMEs – an interpretive case study

PurposeThis research aims to investigate the role of digitalization in facilitating the integration of circular economy (CE) principles within a firm operating in the Italian agrifood sector. The study seeks to explore the evidence and effects emerging from the adoption of digital technologies in a...

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Bibliographic Details
Published in:British food journal (1966) 2024-01, Vol.126 (1), p.409-427
Main Authors: Farace, Biasino, Tarabella, Angela
Format: Article
Language:English
Subjects:
Agribusiness
Agricultural production
Biodiversity
Business models
Case studies
Circular economy
Climate change
Closed loops
Complexity
COVID-19
Digital technology
Digitization
Disruptive innovation
Economic models
Food waste
Growth models
Hydroponics
Information systems
Internet of Things
Natural resources
Population growth
Principles
Resource consumption
Small & medium sized enterprises-SME
Small business
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Summary:PurposeThis research aims to investigate the role of digitalization in facilitating the integration of circular economy (CE) principles within a firm operating in the Italian agrifood sector. The study seeks to explore the evidence and effects emerging from the adoption of digital technologies in a small and medium enterprise (SME) operational setting.Design/methodology/approachAn interpretative case study was conducted on an SME operating in the Italian agrifood sector. The selected firm is known to adopt a business model oriented towards circularity by using entirely digitized closed-loop hydroponic cultivation.FindingsThe findings reveal that the digitalization of the production process, supported by an integrated information system, enables optimizing the use and consumption of natural resources and minimizes waste during the production stage. Additionally, the authors observed that digitalization triggers a complex mechanism of interaction between various firm factors, market dynamics and forms of institutionalization, which are intrinsically intertwined with the concepts of sustainability and resilience in the agrifood sector.Originality/valueFrom a theoretical point of view, the interpretive reading key – historically appropriate to embrace the complexity of the phenomena under study – can foster a deeper understanding of the dynamics underlying digitalization as an enabling factor to facilitating the adoption of CE principles in the agrifood sector. Regarding managerial implications, the study contributes to the debate on the importance of digital transition in the agrifood industry, which in the Italian context shows considerable resistance due, especially, to the size of the firms (mainly SMEs and micro) and managerial conservatism tradition.
ISSN:0007-070X
1758-4108
DOI:10.1108/BFJ-12-2022-1103