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In the past two decades, manufacturing has witnessed significant transformations alongside ecological challenges. Meanwhile, industrial 4.0 digital technologies have accelerated industrialisation with potentials of innovation in the context of circular economy. However, current concepts and models are fragmented and impractical. This paper aims to develop a holistic view integrating the three bodies of knowledge – industrialisation, ecologicalisation and digitalisation (IED) – in order to achieve sustainable development.

Critical literature review is conducted across three bodies of knowledge. Key themes are summarised with the identification of research gaps. A theoretical framework is synthesised and developed aiming to achieve synergy from IED with the modules, integration architecture, mechanism and dynamic paths.

First, the authors review and develop three conceptual models of ecologicalised industrialisation (IE3), industrial system digitalisation (D1) and digital technology industrialisation (D2) separately. Second, the authors propose a theoretical framework seeking to synthesise the above three conceptual models together to form the IED. Third, the authors design a process orientated abductive approach to improve and validate the IED framework.

This study contributes to the limited literature addressing the linkage of IED by integration different perspectives to develop theory in a novel way. Practically, it provides important tools for organisations to consider resource cascading in combination with digitalisation during the industrial system design.