How digital platforms can be leveraged to enable closed material loops – An example of the steel supply chain

Abstract

Increasing demands for limited natural resources accelerate rethinking their usage and processing. A focal point of interest lies in the steel industry, given its substantial contribution to emissions and the notable attribute of steel being fully recyclable. Hence, closing material loops to ensure the preservation of material value and supply security is of substantial importance. Yet, until today, supply chains are still characterized by interrupted information streams that prevent circular material flows. Digital platforms are attributed to overcoming these shortcomings due to their ability to moderate ecosystems and render technological connectivity. However, industrial companies lack knowledge of how digital platforms can be used to design closed material loops. Therefore, this paper is built on a longitudinal case study of a joint venture between a recycling and steel melting plant company aiming at creating a digital platform to close the material flow of steel. Six design priorities, structured along the three core building blocks of digital platform ecosystems and the four core dimensions of collective action theory (CAT), have been derived to guide managers in designing digital platforms for the CE-specific context. This study presently contributes to understanding the relationship between digital platforms and CE.