Do local subsidiaries have unique characteristics in strategies, knowledge, and digital transformation efforts to achieve circular economy goals?

Abstract

This study examines how circular business models (CBMs) and industry 4.0 technologies (I4.0Ts) can connect in the specific context of local subsidiaries. The study adopted a case study methodology, involving twelve semi-structured interviews with key board members of Schneider Electric. Multiple methods of data collection were used to derive robust findings, including interviews, reviews of company sustainability reports, and participation in a workshop organised by the company to learn about its operations. Interview data were analysed using thematic analysis. The results suggest that I4.0Ts may positively influence resource use reduction and circular economy (CE) goals. However, given the study’s qualitative nature and single-company scope, these findings should be interpreted as indicative rather than broadly generalisable. The adoption of I4.0Ts appears driven mainly by legitimacy, stakeholder consensus needs, and regulatory compliance pressures. The study is based on a single case and primarily qualitative evidence; broader validation through comparative or quantitative research would strengthen the robustness of the insights. This research offers tentative insights for other companies considering CE-oriented digital transitions, highlighting potential benefits and challenges. Policymakers are encouraged to support firms in addressing knowledge transfer and workforce resistance barriers. This study adds to the debate on how local subsidiaries can contribute to the CE through I4.0Ts, while also stressing the need for a cautious interpretation of claims about universal advantages.