Digital orientation, digital eco‐innovation and circular economy in the context of sustainable development goals

Abstract Digitalisation increasingly offers numerous opportunities for firms to integrate several environmental management practices into their day‐to‐day operations. Studies in the field of digital technology and circular economy (CE) have pointed out inherent tensions involved in the adoption of technology and CE practices. Firms often prioritise competing goals and prefer one over another, thereby underestimating their interdependent co‐existing relationships. In this context, the study addresses the following research questions: How does digital orientation facilitate digital eco‐innovation for CE‐linked sustainable development goals (SDGs)? What paradoxes do firms encounter while using digital eco‐innovation for CE‐linked SDG practices? What possible strategies could be used to overcome the various paradoxes associated with adopting digital eco‐innovation for CE‐linked SDG practices? Drawing from the paradox theory and using the SAP‐LAP model of inquiry, the study addresses research questions by applying a case study approach. The findings of a qualitative case study provide a novel perspective on digital eco‐innovation and CE literature. Unlike previous studies that deal with digital eco‐innovation and CE independently, the study primarily contributes to the literature by understanding how digital orientation contributes to digital eco‐innovation and the role of digital eco‐innovation in CE practices in the context of SDGs.