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Assessing the Impact of Digital Technologies on the Adoption of Circular Economy Practices
Leskiv V. V.

Leskiv, Viktoriia V. (2025) “Assessing the Impact of Digital Technologies on the Adoption of Circular Economy Practices.” Business Inform 10:334–345.
https://doi.org/10.32983/2222-4459-2025-10-334-345

Section: Ecology and Environmental Management

Article is written in Ukrainian
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UDC 330.33+004

Abstract:
The aim of this article is to carry out an empirical assessment of the impact of digital technologies on the adoption of circular economy practices in Ukrainian companies. This assessment was conducted in two directions (by company size and by type of economic activity) and at three levels (the overall level of digital technology adoption, the level of adoption of specific types of digital technologies, and the level of adoption of digital technologies in relation to the circular economy). It was found that the overall level of digital technology adoption differs significantly depending on the size of the Ukrainian company, with larger companies showing a higher level of digital intensity. The results of the analysis of Ukrainian companies align with general European trends identified in DESI 2022. About half of large enterprises and a third of small enterprises use some form of IoT, but only one in ten enterprises performs big data analysis and uses AI technology. Furthermore, the basic level of digital intensity of Ukrainian companies is still low. By industry, among the eleven types of economic activities studied, information and telecommunications were the most developed, whereas the manufacturing, transport and postal services, real estate operations, administrative and support services, water supply, sewerage, waste management, and construction sectors showed the lowest level of digitalization. Despite the overall trend toward greater digitalization, the degree of adoption of specific applications of individual types of digital technologies varied significantly across different sectors. The proportion of enterprises that use digital technologies in general was higher than the proportion of companies that adopted them to implement circular economy practices. This may suggest that, although digital technologies are indirectly applied to the circular economy, their overall use can be beneficial for implementing circular economy practices in companies. On the other hand, a significant cumulative impact of digital technology factors on specific areas of the circular economy has been identified. However, their level of implementation remains low, and only in relatively rare cases do companies see clearly defined benefits from digitalization aimed at supporting the circular economy. The impact of digital technologies has been observed in two areas of the circular economy: digital technologies for reducing energy consumption and digital technologies for reducing the amount of materials used or increasing the use of secondary raw materials.

Keywords: circular economy, digital technologies, types of economic activity, large, medium and small enterprises, multiple regression, correlation analysis.

Fig.: 5. Tabl.: 3. Bibl.: 10.

Leskiv Viktoriia V. – Postgraduate Student, Department of Economic Cybernetics, Vasyl Stefanyk Carpathian National University (57 Shevchenka Str., Ivano-Frankіvsk, 76018, Ukraine)
Email: [email protected]

List of references in article

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