The enabling role of Digital Technologies towards the Circular Economy transition has been recognized. Nonetheless, to support the transition, the operationalization of the discourse is still needed. The present study performs a systematic literature review, deepening the knowledge on the role of Digital Technologies in operationalizing the Circular Economy transition. The analysis is shaped according to the ReSOLVE framework, as it has been recognized as able to operationally guide industrial firms towards the Circular Economy transition. Despite the broad focus on the topic by the extant literature, the results of the analysis show limited Circular Economy aspects addressed and specific technologies considered, making it difficult to have a complete overview on the implementation of Digital Technologies in the Circular Economy transition, operatively addressing it. Shortcomings are identified regarding the lack of an integrated and holistic analysis of the relationships, the need for investigating the decision-making process and specific Circular Economy practices, all from an empirical perspective. The paper eventually suggests streams for further research while offering theoretical and practical implications.

The adoption of Industry 4.0's digital technologies can enable the implementation of circular economy practices. Nonetheless, current indications for industrial practitioners on how to exploit the broad set of technologies for circular transition appear unclear. This issue is even more challenging for small and medium enterprises, which are typically endowed with more limited resources than larger firms and are characterised by both a digital and circular divide. This present study contributes to the academic debate by offering an exploratory empirical analysis—based on semi‐structured interviews—that involved 10 Italian industrial small and medium enterprises to deepen the knowledge of the supporting role played by digital technologies in implementing circular economy practices by small and medium enterprises, also considering the potential synergies among such technologies. Results are of interest also to industrial decision‐makers, allowing them to exploit their firms' resources towards the adoption of those digital technologies that could be more effective to foster the circular transition.

Circular economy and digital technologies are crucial topics in the current academic and managerial debates. It is largely recognised that—although related to different paradigms—digital technologies could support the industrial circular transition, fostering the adoption of circular economy practices. So far, the relationship has been studied by directly linking the adoption of digital technologies to the implementation of circular economy practices; however, indications for practitioners are unclear. There is thus the need to investigate the relationship at a deeper level. This paper aims at contributing to the debate by adopting a dynamic capabilities theory perspective. By employing an explorative multiple case study methodology and based on an abductive logic, this study investigates 11 Northern‐Italy industrial firms in order to understand the transformations that occurred following the adoption of digital technologies and how these transformations supported the adoption of circular economy practices. The results shed preliminary light on which dynamic capabilities—sensing, seizing and transforming, and their related microfoundations—can be enabled by the different digital technologies and how these capabilities and microfoundations support the circular transition. The study thus provides a first‐of‐a‐kind investigation and suggests propositions for further research to better deepen the knowledge of digital‐enabled dynamic capabilities supporting industrial circular economy.