Leadership-Centric Digital Transformation for Circular Economy Implementation

The circular economy has emerged as a strategic response to escalating resource depletion, plastic waste accumulation, and environmental degradation. While advanced technologies associated with Industry 4.0 such as artificial intelligence, digital twins, Industrial Internet of Things, and data analytics offer powerful enablers for circular practices, their real-world impact remains inconsistent. This review paper argues that the effectiveness of circular economy implementation critically depends on leadership-centric digital transformation and system-level coordination. By systematically reviewing literature on circular economy, plastic recycling, Industry 4.0 technologies, digital leadership, and system dynamics, this study synthesizes existing knowledge into an integrated perspective. The review identifies key technological drivers, leadership mechanisms, and feedback-based system behaviors shaping sustainable industrial transformation. The findings highlight digital leadership as a central leverage point for achieving resilient and resource-efficient circular systems and provide insights for policymakers and industrial decision-makers.