Felipe Bastos dos Reis, Adriana Marotti de Mello, João Valsecchi Ribeiro de Souza
Industry 4.0 technologies are increasingly recognized as important contributors to the transition toward a circular economy, yet their association with circular business models (CBMs) remains poorly understood. This paper examines how Industry 4.0 technologies contribute to CBM implementation. Drawing on a systematic literature review of 34 papers and an analysis of 13 illustrative cases from the Circular X and Ellen MacArthur Foundation databases, the study maps the relationship between technologies, applications, and CBM patterns. The findings identify seven core technologies, Artificial Intelligence, Big Data, Cloud Computing, Internet of Things, Additive Manufacturing, Augmented Reality, and Blockchain, and 14 key applications linked to circular business models, such as data integration, predictive maintenance, smart energy management, and supply chain traceability. The results suggest that technology adoption alone is not necessarily associated with circular outcomes. Most applications correspond to efficiency-oriented strategies, particularly the reduction of material and energy consumption, indicating that current uses of Industry 4.0 in CBMs remain strongly oriented toward digital optimization. When technologies are not aligned with circular value propositions, efficiency gains may generate rebound effects, potentially increasing environmental impacts. This study advances the circular economy literature by providing a configurational perspective on the implementation of Industry 4.0 technologies within CBMs and by mapping how digital capabilities contribute to specific circular applications. Practically, the findings offer guidance for managers seeking to prioritize technology investments and move circular business strategies beyond operational efficiency toward circular transformation. Overall, the study contributes to a more comprehensive understanding of how the association between Industry 4.0 technologies and circular transformation, rather than digital optimization alone, appears stronger when their applications align with CBM patterns and circular value propositions.