AN IOT-ENABLED DECISION SUPPORT SYSTEM FOR CIRCULAR ECONOMY BUSINESS MODELS: A REVIEW OF ECONOMIC EFFICIENCY AND SUSTAINABILITY OUTCOMES

Abstract

This study presents a comprehensive systematic review investigating the integration of Internet of Things (IoT) technologies with Decision Support Systems (DSS) in the context of Circular Economy (CE) business models, with a particular emphasis on outcomes related to economic efficiency and environmental sustainability. Employing the PRISMA 2020 (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) guidelines to ensure methodological rigor and transparency, this review analyzed a total of 68 peer-reviewed articles published between 2013 and 2024. The selected literature spans multiple disciplines, including environmental economics, industrial engineering, and information systems, reflecting the interdisciplinary nature of digital circularity. The findings demonstrate that IoT-enabled DSS platforms play a pivotal role in enhancing economic performance through reduced operational costs, labor optimization, predictive maintenance, and more efficient material usage. Additionally, environmental performance outcomes are evident across the literature, particularly through real-time monitoring of carbon emissions, water resource optimization, and energy efficiency improvements. These systems also operationalize core CE principles such as product lifecycle extension, closed-loop material flows, and reverse logistics. Despite these benefits, several challenges impede widespread adoption, including fragmented infrastructure, legacy systems, high upfront costs, lack of interoperability standards, organizational resistance, and underdeveloped sectoral applications. The review also identifies critical gaps in longitudinal studies, stakeholder-inclusive research, and applications in non-industrial sectors such as healthcare, education, and construction. Furthermore, the absence of a unified theoretical framework limits strategic alignment and scalability across different industry contexts. This paper concludes by advocating for a cross-disciplinary, adaptive framework to guide future implementation and research, incorporating digital, operational, and sustainability dimensions. The review contributes to advancing theoretical understanding and offers actionable insights for practitioners and policymakers seeking to leverage IoT-DSS solutions as strategic tools in enabling circular business transformations that are economically viable, environmentally responsible, and technologically resilient.