From Resource Circulation to Sustainable Value Creation

This paper examines the relationships among circular economy, green innovation and sustainable production systems through a structured review of recent academic contributions. It considers circular economy as a systemic approach to resource circulation, value retention and business-model transformation, while recognizing that circularity cannot be considered equivalent to sustainability without evaluating its environmental, economic and social outcomes. The review further examines green innovation as a mechanism through which firms translate environmental pressures, technological capabilities, organizational resources and institutional incentives into cleaner products, processes and managerial practices. Particular attention is given to the influence of regulation, stakeholder pressure, knowledge management, digitalization and organizational capabilities on environmental innovation and corporate performance. The final part addresses sustainable manufacturing, Industry 4.0 and sustainable supply-chain management, emphasizing the growing convergence between technological modernization, circular production, environmental management and interorganizational coordination. The reviewed literature suggests that sustainable production depends less on isolated environmental practices than on the integration of technological, organizational and institutional mechanisms across product life cycles and supply networks. Digital technologies can strengthen traceability, resource efficiency and circular material flows, but their contribution remains conditional on managerial capabilities, sustainability-oriented operations and appropriate governance arrangements. Overall, the paper highlights the need for integrated production strategies capable of combining circularity, innovation, supply-chain coordination and multidimensional performance measurement