Towards a framework of smart-circular systems: An integrative literature review

Abstract Profiting from the benefits of smart products connected through the Internet of Things (IoT) could disrupt business models and has the potential to foster a circular economy by embracing a performance economy. Extant literature has offered insights into circular strategies, smart products and product-service systems (PSS) in isolated ways or by considering partial overlaps, but lacks a holistic account of their interplay. By means of an integrated review, this paper synthesises literatures from various domains to describe interrelationships among these three concepts and propose a conceptual framework of smart-circular systems. This paper thereby advances research by providing a description of three binary interrelationships: smart circularity, smart PSS and circular PSS. Moreover, the review elaborates a new understanding of smart-circular (product-service) systems by articulating the base strategy smart use and extending the following circular strategies (or technical loops): maintenance, reuse, remanufacturing and recycling. Finally, the review outlines a critique of the state of the literature on this phenomenon and offers suggestions to guide future empirical and theoretical research in the domains of circular strategies, services and business models.