Industrialisation, ecologicalisation and digitalisation (IED): building a theoretical framework for sustainable development

DOIhttps://doi.org/10.1108/IMDS-06-2022-0371
Published date28 February 2023
Date28 February 2023
Pages1252-1277
Subject MatterInformation & knowledge management,Information systems,Data management systems,Knowledge management,Knowledge sharing,Management science & operations,Supply chain management,Supply chain information systems,Logistics,Quality management/systems
AuthorYongjiang Shi,Jialun Hu,David Tianxin Shang,Zheng Liu,Wei Zhang
Industrialisation, ecologicalisation
and digitalisation (IED): building
a theoretical framework
for sustainable development
Yongjiang Shi
Institute for Manufacturing, University of Cambridge, Cambridge, UK
Jialun Hu
School of Business and Management, Royal Holloway University of London,
Egham, UK
David Tianxin Shang
Institute for Manufacturing, University of Cambridge, Cambridge, UK
Zheng Liu
Cardiff School of Management, Cardiff Metropolitan University, Cardiff, UK and
Centre for Innovation and Development,
Nanjing University of Science and Technology, Nanjing, China, and
Wei Zhang
Zhejiang Normal University, Jinhua, China
Abstract
Purpose In the past two decades, manufacturing has witnessed significant transformations alongside
ecological challenges. Meanwhile, industrial 4.0 digital technologies have accelerated industrialisation with
potentials of innovation in the context of circular economy. However, current concepts and models are
fragmented and impractical. This paper aims to develop a holistic view integrating the three bodies of
knowledge industrialisation, ecologicalisation and digitalisation (IED) in order to achieve sustainable
development.
Design/methodology/approach Critical literature review is conducted across three bodies of knowledge.
Key themes are summarised with the identification of research gaps. A theoretical framework is synthesised
and developed aiming to achieve synergy from IED with the modules, integration architecture, mechanismand
dynamic paths.
Findings First, the authors review and develop three conceptual models of ecologicalised industrialisation
(IE3), industrial system digitalisation (D1) and digital technology industrialisation (D2) separately. Second, the
authors propose a theoretical framework seeking to synthesise the above three conceptual models together to
form the IED. Third, the authors design a process orientated abductive approach to improve and validate the
IED framework.
Originality/value This study contributes to the limited literature addressing the linkage of IED by
integration different perspectives to develop theory in a novel way. Practically, it provides important tools for
organisations to consider resource cascading in combination with digitalisation during the industrial system
design.
Keywords Industrial ecology, Industrial system, Circular economy, Digitalisation, Sustainability
Paper type Conceptual paper
1. Introduction
In the past two decades, manufacturing has witnessed significant transformations from
factory-based operations to international dispersed networks, vertical collaboration among
supply chain partners and business ecosystems (Shi and Gregory, 2005;Shi et al., 2021).
IMDS
123,4
1252
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/0263-5577.htm
Received 15 June 2022
Revised 10 October 2022
8 December 2022
Accepted 3 January 2023
Industrial Management & Data
Systems
Vol. 123 No. 4, 2023
pp. 1252-1277
© Emerald Publishing Limited
0263-5577
DOI 10.1108/IMDS-06-2022-0371
Nevertheless, the global industrialisation process is now more subject to the requirements
and constraints of environmental protection. China for example, via reform and opening
practices has rapidly realised industrialisation through gradual integration into global
marketisation. However, problems such as intense pollution treatment due to high-intensity
industrialisation make the balance between industrialisation and ecologicalisation unsolved
(Shi et al., 2021). At national level, this kind of development pattern should not be repeated in
the future. Instead, new approaches that consider the balance of environmental and business
ecosystems should be used as an essential reference for the industrialisation of other
countries such as Vietnam and Brazil. At an organisational level, issues such as the ecological
requirements in the process of industrialisation and the consideration of ecological problems
in advance when designing the production system have become increasingly important.
There are concepts such as circular economy addressing broader issues in response to socio-
environmental challenges (Ghisellini et al., 2016), yet in practice how to consider the ecological
requirements in the process of industrialisation and how to consider the ecological problems
in advance when designing the production system need to be solved.
Industrial 4.0 technologies, artificial intelligence (AI), robot, big data and Internet of things
(IoT) has accelerated industrialisation via better efficiency and effectiveness (Kiel et al., 2017;
Sung, 2018;Lanzolla et al., 2020). This change requires the enterprisesR&D, design and
production departments to respond quickly to the ever-changing demands from both market
and external factors such as the natural environment. In practice, novel business models only
truly evolve in a digital environment. For example, Alibaba has utilised digital technologies
that encompass resource allocation at the organisation and business ecosystem levels.
Nevertheless, many companies (especially SMEs) are facing the anxiety and pressure of
choices without knowing which technology is effective and should be promoted first; this has
caused confusion when attempting to take advantage of opportunities. Thus, a clear guide
addressing the co-evolution and synergy of industrialisation, ecologicalisation and
digitalisation (IED) is needed.
This paper attempts to develop a theoretical framework that aims to integrate the IED for
sustainable development. There is no existing holistic theoretical model that integrates IED.
Therefore, rather than comparing with existing models, the paper draws upon the literature
across the three areas, respectively, to generate a completely new framework and proposes a
research agenda alongside methods to advance the theory (Post et al., 2020). The specific
objectives are as follows:
(1) To explore the themes of IED, and develop a theoretical framework to integrate these
three aspects;
(2) To propose an abductive method with process-oriented approach to further enrich
and validate the theoretical framework;
(3) To promote the research agenda, where researchers can develop proposals and
projects tailored to local needs.
To achieve the objective, we first conducted a critical literature review and followed the
example set by Campbell-Johnston et al. (2020) to identify and synthesise knowledge for the
aim of generating new theoretical models (Grant and Booth, 2009;Campbell-Johnston et al.,
2020). We reviewed all three relevant theory groups to capture (1) ecologicalised
industrialisation (IE
3
), (2) digitalisation of industrial system (D
1
) and (3) the
industrialisation of digital technology (D
2
). Of potentially 300 articles published in Scopus
and Business Source Premier database since 2010, we chose around 110 papers with large
amounts of citation and focussed on the in-depth interpretation of the predominant concepts
(Appendices 1,2,3). It covered industrial system, circular economy, industrial symbiosis,
Sustainable
development
theoretical
framework
1253

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