A Conceptual Model of Digital Ecosystem-Based Circular Economy for Craft Industries Utilizing Renewable Natural Resources
Year: 2026
Type: article
Abstract: The handicraft sector utilizing renewable natural resources plays a pivotal role in rural economic development and cultural preservation. However, conventional linear production models face severe market frictions, including upstream resource depletion, information asymmetry, and unaccounted ecological externalities. Grounded in environmental resource economics, microeconomic value theory, and digital platform architecture, this study proposes a conceptual framework that integrates circular economy principles into a digital ecosystem. Using an integrative conceptual synthesis methodology, this study models the structural interactions among four core dimensions: closed-loop input stewardship, smart platform verification, consumer willingness-to-pay internalisation, and community-level economic governance. The model introduces four key theoretical propositions explaining how distributed digital ledgers and eco-labeling mitigate moral hazard, transform positive environmental externalities into producer surplus, and optimize resource renewal rates. Ultimately, the conceptual architecture demonstrates that digital enablement does not merely digitize commercial transactions, but recalibrates resource governance, fostering regenerative rural craft clusters and long-term socio-ecological sustainability.
DOI: 10.63822/nfhssr73
Author: Ningsih, Selly Kudrati
Institution: State University of Makassar
Language: English
Subfield: Strategy and Management
Domain: Social Sciences
Open Access status: hybrid
OpenAlex ID: W7221141399
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