Drivers from Extended Institutional Theory Supporting the DPP as a Tool of CE

Purpose: To facilitate a circular economy (CE) transition, the European Union (EU) introduced digital product passports (DPPs) as useful tools for providing information on products’ compositions, origins and disposal. DPPs enable product-related information and processes to be electronically registered and shared amongst supply chain businesses, consumers and authorities. In this work we aimed to integrate findings from the available literature to offer insight into the conceptual framework of DPPs as circularity tools and their roles in companies in terms of legitimacy, compliance and relevance to the many sustainability variables. Design: This work conceptualizes DPPs based on theoretical frameworks for promoting companies’ sustainability and outlines prospects for using DPPs. A critical analytical review of the academic literature and available professional documents has been conducted to investigate DPPs’ connotations. Then the new institutional theory and its extended version has been applied to DPPs to enhance conceptualization. Originality/value: Although some authors have analysed DPPs, most works offer an engineering and IT point of view. In this work we attempt to enhance the descriptive conceptualization of DPPs by focusing on their influence on organizations’ behaviour and the relationship between organizations and the social context, thus offering a business perspective. Research implications: DPPs facilitate the harmonization of economic development (efficiency) and environmental protection (legitimacy). The application of DPPs could be explored with a focus on additional devices and technologies, such as blockchains.