The Role of Business Models in Smart-City Waste Management: A Framework for Sustainable Decision-Making

Abstract

This study addresses the multifaceted challenges inherent in implementing effective smart-city waste-management systems. Recent global trends indicate increased adoption of Industry 4.0 technologies—such as the Internet of Things (IoT), artificial intelligence (AI), and data analytics—to optimize waste collection and processing. The central research question investigates the role of innovative business models and sustainable decision-making frameworks in advancing smart waste management within urban environments. This research integrates three interrelated domains: business-model innovation, smart-city paradigms, and sustainability in waste management. Its novelty lies in synthesizing these domains, conducting a comparative analysis of best practices from leading European smart cities, and proposing a conceptual framework to guide sustainable decision-making. Methodologically, the study employs a systematic literature review, case-study analyses, and the synthesis of theoretical and empirical data. Key findings demonstrate that innovative business models—such as product-as-a-service, circular-economy approaches, and waste-as-a-service—substantially enhance the sustainability and operational efficiency of urban waste systems. However, many cities lack comprehensive strategies for integrating these models, highlighting the necessity for deliberate planning and active stakeholder engagement. Based on these insights, the study offers actionable recommendations for policymakers and urban managers to embed sustainable business models into smart-city waste infrastructures. These contributions aim to promote the development of resilient, efficient, and environmentally responsible waste-management systems in smart cities.

1. Introduction

The management of waste in urban environments constitutes a complex challenge, encompassing a multitude of variables and stakeholders. As cities continue to grow and urbanization intensifies, finding effective solutions to waste management becomes increasingly critical. Rapid urbanization has led to a surge in waste volumes, often outpacing the capacity of existing waste-management infrastructure, especially in developing countries. This mismatch results in increased environmental pollution, public-health risks, and economic costs associated with inefficient waste handling and disposal. Moreover, the diversity of waste types—from organic to hazardous materials—adds layers of complexity to management efforts, requiring tailored solutions that traditional systems are often ill-equipped to provide.

Smart cities, leveraging technologies such as the Internet of Things (IoT), artificial intelligence (AI), and data analytics, offer a promising framework for addressing these challenges. The implementation of innovative business models, such as product-as-a-service and circular-economy principles, can significantly transform traditional waste-management systems by treating waste as a valuable resource rather than merely disposing of it [1].

At the core of these initiatives is the utilization of data to understand waste-generation patterns, optimize collection routes, and enhance sustainability. Smart waste-management solutions, including sensor-equipped bins and dynamic routing systems, enable cities to reduce costs, lower carbon emissions, and improve the quality of life for residents. These technologies also provide municipalities with actionable insights into allocating resources more efficiently, reducing operational inefficiencies, and engaging citizens in sustainable practices [1]. Furthermore, by enabling predictive analytics, smart systems can anticipate waste surges and optimize capacity planning, thereby minimizing overflow and illegal dumping.

The adoption of such smart waste-management systems aligns with global sustainability agendas, including the United Nations’ Sustainable Development Goals, particularly Goal 11 (Sustainable Cities and Communities) and Goal 12 (Responsible Consumption and Production). This alignment underscores the broader societal and environmental imperatives driving innovation in waste management, emphasizing the importance of integrating technology with sustainable urban-development policies [1,2].

Existing research has extensively explored the application of smart technologies in urban waste management, demonstrating significant potential for improving operational efficiency and sustainability. For instance, Kamm et al. illustrate how IoT-enabled devices facilitate demand-driven waste collection, optimizing routes and reducing costs, although they also highlight challenges related to infrastructure and data transmission [3]. Similarly, Lundin et al. present a case study employing wireless sensors and cloud analytics to enable real-time waste monitoring, emphasizing the importance of stakeholder engagement and data-driven decision-making [4]. These studies underscore the technological advancements that underpin smart waste systems but often focus primarily on technical implementation without fully integrating business-model considerations [2,3].

Complementing these technological perspectives, Hussain et al. provide a comparative analysis of IoT-based waste-management models, evaluating their sustainability and operational dynamics through multi-agent simulations [5]. This work contributes valuable insights into model effectiveness but does not extensively address the role of innovative business models in facilitating technology adoption and long-term sustainability. Mingaleva et al. further contextualize waste management within green and smart-city frameworks, stressing the alignment with broader sustainability goals; however, their analysis stops short of proposing integrative frameworks that combine technology, business models, and policy [6].

Real-world complexities are highlighted in studies such as the recent qualitative investigation of Bengaluru’s solid waste-management system (2025), which reveals challenges in stakeholder coordination, last-mile service delivery, and the practical deployment of IoT solutions. This underscores the necessity of considering socio-economic and governance factors alongside technological innovation. Review by Szpilko et al. synthesize current trends and future directions in smart waste management, particularly emphasizing Industry 4.0 technologies and sustainability principles [7]. These comprehensive overviews provide a solid theoretical foundation but identify a lack of research focusing on the integration of innovative business models with smart-city technologies.

Collectively, these studies highlight the fragmented nature of existing research, which tends to address technological, business, or sustainability aspects in isolation. This reveals a clear gap: the need for a holistic framework that synthesizes innovative business models with smart-city technologies to advance sustainable urban waste management. The present study aims to fill this gap by developing an integrative decision-making framework informed by comparative analyses of best practices in European smart cities, thereby offering actionable insights for policymakers and urban planners.

This article examines the role of business models in smart-city waste management, providing a framework for sustainable decision-making. It scrutinizes novel frameworks and business models, waste prevention strategies, and the economic and environmental impacts of these technologies. The article also discusses best practices from various smart cities and offers recommendations for policymakers and city managers to integrate sustainable waste management into their urban-development strategies. By addressing both technological and business-model innovations, the study aims to fill existing gaps in the literature and in practice, offering comprehensive guidance for cities striving to transition from traditional linear waste systems to more circular and sustainable models. This integrative approach is essential to overcoming barriers such as financing, stakeholder coordination, regulatory challenges, and policy alignment, which often hinder the scaling of smart waste-management solutions.

Additionally, the study highlights the importance of multi-stakeholder collaboration—including government agencies, private-sector partners, and local communities—in designing and implementing effective waste-management strategies. It also emphasizes the need for adaptable business models that can be tailored to diverse urban contexts, taking into account socio-economic and cultural factors. These considerations ensure that smart waste-management solutions are not only technologically feasible but also socially inclusive and economically viable, thereby enhancing their long-term sustainability and impact [8,9,10].

Building upon the challenges and opportunities associated with the integration of smart-city technologies and innovative business models in urban waste management, this study seeks to address the following core research questions: How do innovative business models, such as product-as-a-service and circular-economy principles, influence the adoption and effectiveness of smart-city technologies in waste management? What are the economic and environmental impacts of combining these technologies with sustainable business models? Which best practices from leading smart cities can inform policymakers and city managers in developing efficient and sustainable waste-management strategies? It is hypothesized that the synergistic integration of innovative business models with smart-city technologies substantially enhances the sustainability, operational efficiency, and economic viability of urban waste-management systems.

2. Theoretical Review

In addressing the complex challenges of waste management in smart cities, it is essential to identify key areas that underpin sustainable decision-making. This article focuses on three pivotal domains: business models, the smart city concept, and sustainability. Each of these areas plays a crucial role in transforming traditional waste-management systems into more efficient and environmentally friendly processes.

2.1. Business Models

Business models in urban settings, particularly in smart cities, are complex systems that integrate economic, social, and environmental aspects. These models are crucial for delivering economic value and ensuring sustainability through various patterns such as unbundling, long tail, multi-sided platforms, and free business models [9]. The modular business-model approach, as discussed by Perätalo and Ahokangas, offers a simplicity framework that aligns with smart-city dimensions, enhancing governance and value creation across different city services [10]. Sustainable business models are designed with long-term perspectives, incorporating multi-stakeholder management and value creation for various stakeholders [9]. Moreover, these models play a vital role in transforming traditional systems into more sustainable processes. For instance, innovative business models like product-as-a-service and circular-economy principles enable the transformation of waste into valuable resources, reducing waste disposal and promoting sustainability [1,11]. This is achieved by keeping products and raw materials in circulation through concepts such as renting and recycling products to use as raw materials for new products [12]. Additionally, frameworks like the smart city business-model canvas support the development of holistic and integrated business models, fostering sustainable value creation and innovation in urban environments [11].

• Business Models in Smart Cities

In the context of smart cities, business models are integral to leveraging advanced technologies like IoT, AI, and data analytics to enhance urban infrastructure and services. Smart waste-management solutions, including sensor-equipped bins and dynamic routing systems, enable cities to optimize collection routes, reduce costs, and improve environmental outcomes [13]. These models facilitate the creation of new economic and ecological opportunities by integrating data-driven insights into waste-management processes, thereby supporting sustainable urban development.

Smart cities utilize digital platforms and IoT technologies to connect supply and demand in waste management, fostering more efficient and sustainable practices. By integrating ICT into their infrastructure and services, smart cities can evaluate the value they offer citizens through innovative business models, enhancing quality of life and environmental sustainability [14].

• Business Models in Waste Management

Business models play a crucial role in shaping the effectiveness and sustainability of waste-management systems. With the increasing global focus on environmental sustainability, circular-economy principles, and resource efficiency, waste-management business models have evolved significantly [15]. Several business-model frameworks can be applied to waste management, including the business model canvas (BMC), triple bottom line (TBL), and circular business models (CBM). The BMC framework is sought after by various partners, engaging in the key activities such as including waste collection, sorting, recycling, upcycling, and energy recovery. The value proposition focuses on providing efficient and sustainable waste-management solutions that reduce environmental impact and enhance resource efficiency, targeting customer segments such as municipalities, industrial firms, and consumers seeking sustainable waste disposal solutions [15]. Revenue streams include waste-collection fees, recycling product sales, government subsidies, and carbon credit trading [8,16].

The TBL approach incorporates economic, social, and environmental aspects, emphasizing profitability through waste processing, employment creation, and the reduction of landfill waste [16]. Circular business models promote closed-loop systems by encouraging reusability and recyclability of materials, product-as-a-service models, and industrial symbiosis through collaboration between businesses to use waste as a resource [16]. Key trends in waste-management business models include digital transformation through the use of IoT, AI, and blockchain technology, extended producer responsibility, decentralized waste-management initiatives, and waste-to-energy models that generate energy through incineration and anaerobic digestion [17]. Emerging innovations include reverse logistics to encourage product take-back schemes, shared economic platforms that connect waste generators with recyclers, and green financing models such as public–private partnerships (PPP) and impact investment funds [8]. The evolution of business models in waste management reflects a shift towards sustainability, efficiency, and circularity. Theoretical frameworks such as BMC, TBL, and CBM offer structured approaches to developing innovative and economically viable waste-management strategies, and future research and policy development should focus on scaling sustainable business models to achieve long-term environmental and economic benefits [18].

Based on the information related to innovative business models and their application in smart-city waste management, Hypothesis H1 can be defined as follows: by implementing innovative business models such as product-as-a-service and circular-economy principles in smart-city waste-management systems, the sustainability and efficiency of waste-management processes will be significantly enhanced.

This hypothesis focuses on the potential of business models to transform waste-management systems into more sustainable and efficient processes, aligning with the broader goals of smart-city development.

2.2. The Smart City

The concept of a smart city represents an integrative approach to urban development that leverages advanced digital technologies, human capital, and institutional frameworks to enhance the sustainability, efficiency, and quality of life within urban environments. At its core, a smart city encompasses several key components, including robust information and communication-technology (ICT) infrastructures, widespread deployment of Internet of Things (IoT) devices and sensors, cloud computing platforms, and artificial intelligence (AI) systems. These technological elements enable real-time data collection, processing, and analytics, which facilitate the optimization of essential urban services such as energy management, transportation, water supply, and waste management [13,18]. For example, smart infrastructure integrates sensors and data analytics into existing urban frameworks to enhance effectiveness and sustainability, as seen in smart grids, intelligent transportation systems, and automated waste-collection technologies [14,15,19].

Beyond technological infrastructure, smart cities emphasize the critical role of social capital and participatory governance. The human and institutional dimensions—such as citizen engagement, collaborative policymaking, and inter-agency coordination—are recognized as fundamental to achieving sustainable urban-development outcomes [20]. This holistic perspective acknowledges that technology alone is insufficient; rather, the integration of people, processes, and policies is essential to realize the full potential of smart-city initiatives.

The development of smart cities typically unfolds through progressive stages. Initially, cities focus on clarifying awareness of urban challenges and strengthening governance structures to support smart initiatives. This is followed by the formulation of strategic plans and the establishment of project-driving entities or consortia. Subsequently, pilot projects and verification stages are conducted to assess social acceptability and technical feasibility. Finally, successful initiatives are implemented, monitored, and continuously improved to establish fully functional smart-city ecosystems [12,14]. This staged approach reflects a transition from foundational digital connectivity and isolated smart projects toward integrated, data-driven urban ecosystems characterized by cross-sector collaboration, advanced analytics, and adaptive governance that promote innovation and resilience [16,21].

Building upon this comprehensive understanding of smart-city frameworks and their technological and developmental dimensions, the subsequent discussion focuses on the application of these principles to urban waste management. It examines how the integration of smart technologies and innovative business models can address the complex challenges of waste collection, processing, and sustainability within the evolving smart-city paradigm.

2.3. Smart-City Waste Management

Smart-city waste management integrates advanced technologies such as the Internet of Things (IoT), artificial intelligence (AI), and big data analytics to optimize waste collection, sorting, and disposal processes, thereby enhancing efficiency and sustainability [19]. This approach aligns with the smart city framework, which conceptualizes cities as technologically interconnected ecosystems aimed at improving urban living standards, while also incorporating principles of the circular economy that emphasize resource efficiency and waste minimization [18,20]. The adoption of smart waste-management solutions has led to the emergence of innovative business models that transform waste management from a cost-heavy municipal service into a data-driven, service-oriented industry [21]. Circular economy-driven models promote extended producer responsibility schemes and closed-loop supply chains, encouraging businesses to design products with end-of-life recyclability in mind [17]. Additionally, the rise of waste-as-a-service (WaaS) models enables municipalities and private entities to outsource waste collection and processing to technology-driven companies that leverage real-time monitoring, predictive analytics, and AI-driven automation to optimize operations and reduce costs [22]. Blockchain-based business models further enhance transparency and traceability in waste disposal and recycling markets, ensuring compliance with environmental regulations and creating opportunities for monetizing waste streams [23]. Furthermore, waste-to-energy (WTE) solutions support a value-generating approach by converting waste into electricity and biofuels, allowing companies to integrate circular-economy principles into their revenue strategies [24]. Despite these advancements, the implementation of smart waste-management business models faces challenges, including high capital investment requirements, regulatory complexities, and data privacy concerns [25]. Nonetheless, the growing demand for sustainable urban solutions is driving public–private partnerships and innovative financing mechanisms, positioning smart waste management as a crucial element in the evolution of sustainable business ecosystems within smart cities.

Based on the integration of advanced technologies, such as the IoT, AI, and blockchain, into waste-management systems, as described in the context of smart cities, it is hypothesized that the implementation of these technologies will significantly enhance the efficiency and sustainability of waste-management processes, leading to reduced environmental impacts and improved urban livability.

2.4. Sustainable Decision-Making

Sustainable decision-making represents a multidisciplinary approach that integrates environmental, social, and economic considerations into decision-making processes to achieve long-term sustainability objectives. This concept is grounded in the principles of sustainable development and aligns with frameworks such as the triple bottom line (TBL), which evaluates decisions based on their environmental, social, and economic impacts [26]. Additionally, sustainable decision-making is influenced by the circular-economy (CE) model, which promotes resource efficiency, waste minimization, and regenerative design [18]. Decision-making models such as life-cycle assessment provide structured methodologies to assess the sustainability of products and services across their entire life cycle [27]. Furthermore, behavioral economics and stakeholder theory emphasize the role of human behavior, ethics, and corporate social responsibility in sustainable decision-making [28].

In the context of smart-city waste management and business models in waste management, sustainable decision-making plays a pivotal role in optimizing resource utilization, reducing environmental impact, and enhancing economic viability. Smart cities leverage technologies such as artificial intelligence (AI), big data analytics, and the Internet of Things (IoT) to enable data-driven decision-making in waste management, thereby improving efficiency and sustainability [8]. Business models in waste management, such as waste-as-a-service and extended producer responsibility, rely on sustainable decision-making frameworks to align profitability with environmental and social goals. Circular economy-driven business models promote closed-loop supply chains and waste-to-energy solutions, transforming waste into valuable resources while minimizing landfill dependency [18]. Despite these advancements, challenges such as regulatory barriers, financial constraints, and technological adoption hinder the widespread implementation of sustainable waste-management practices.

Based on the integration of sustainable decision-making frameworks such as the triple bottom line and circular-economy principles into smart-city waste management and business models, it is hypothesized that the adoption of these frameworks will significantly enhance the efficiency, sustainability, and economic viability of waste-management systems, leading to reduced environmental impacts and improved urban livability.

This hypothesis is grounded in the assumption that aligning waste-management practices with sustainable decision-making principles will optimize resource utilization, reduce waste, and promote economic resilience in smart cities.

To clearly present the primary findings from the three researched areas, a summary table was developed for theoretical analysis (

Table 1. Summary of the theoretical review.

Author/s	Key Area	Findings
[1,9,10,11]	Business models	− Sustainable business models integrate economic, social, and environmental aspects, enhancing governance and value creation. − Modular business models offer simplicity and align with smart-city dimensions, enhancing governance and value creation. − Innovative business models transform waste into valuable resources through product-as-a-service and circular-economy principles. − The smart city business model canvas supports holistic and integrated business models, fostering sustainable value creation.
[13,14,21]	Smart-city waste management	− Smart waste-management solutions optimize collection routes and reduce costs using the IoT and AI. − Digital platforms and IoT technologies enhance efficiency and sustainability in waste management. − Smart-city waste management integrates the IoT, AI, and big data analytics for efficiency and sustainability.
[18,27]	Sustainable decision-making	− The triple bottom line approach emphasizes profitability, employment, and environmental impact reduction. − Circular-economy principles promote resource efficiency and waste minimization. − Life-cycle assessment provides methodologies to assess sustainability across product life cycles.

).

The existing literature on business models in smart-city waste management reveals a significant knowledge gap. While numerous studies by renowned authors have explored the benefits of innovative business models, smart-city waste management, and sustainable decision-making, they often focus on only one of these areas. Despite highlighting the advantages of integrating advanced technologies and sustainable practices into waste management, these studies lack comprehensive strategies and planning frameworks applicable to cities of similar size and context.

This gap in research underscores the need for a more holistic approach that integrates business models, smart-city waste management, and sustainable decision-making principles. By developing frameworks that consider the specific needs and challenges of cities like Bratislava, policymakers and stakeholders can create more effective and sustainable waste-management systems. Such an integrated approach would not only enhance environmental sustainability but also support economic viability and social equity, aligning with the broader goals of smart-city development.

3. Materials and Methods

The research was guided by the central research question: What role do innovative business models and sustainable decision-making frameworks play in advancing smart-city waste management? The principal objective was to formulate recommendations for the integration of sustainable business models into urban waste-management systems, with a particular focus on the application of advanced digital technologies and circular-economy principles.

A multi-method approach was adopted, structured into four key methodological areas: data acquisition, data processing, problem-solving, and the evaluation of proposed solutions.

Relevant data were obtained through a systematic literature review and document analysis. To visualize the process of identifying and selecting the relevant literature, a PRISMA flow diagram, seen in Figure 1, was developed. This diagram illustrates a systematic approach to literature selection, beginning with the identification of sources through comprehensive searches across multiple academic databases and supplementary online materials not encompassed by these databases. Following this, duplicate records were removed, and the remaining studies underwent a screening process based on their titles and abstracts to assess initial relevance. Full-text articles were then reviewed in detail to determine their eligibility in relation to the research question’s aims and objectives. Studies that did not meet these criteria were excluded. The final stage involved the inclusion of only those studies that met all eligibility requirements, ensuring a focused and methodologically sound foundation for the research.

The selection of sources was governed by the following stringent criteria to ensure relevance and credibility:

• The documents had to address business models, smart-city frameworks, or sustainability in the context of urban waste management.
• The authors of the selected publications were required to demonstrate recognized expertise in the field.

For the inclusion of case studies and supporting documents, the following additional criteria were applied:

• The city or case must exhibit core characteristics of a smart city.
• The city must demonstrate positive performance in waste management and sustainability, as evidenced by its inclusion in reputable smart-city rankings or reports.

To ensure the validity of data collection, the following steps were undertaken:

• Assessment of each case’s relevance based on predefined criteria.
• Comprehensive description of each selected case, including contextual characteristics and justification for the adoption of innovative business models.
• Identification and analysis of the impacts of these models on waste-management efficiency, sustainability, and city operations.
• Synthesis and generalization of findings from each case study to extract transferable lessons.

To complement the broader analysis with a detailed, context-specific perspective, an in-depth case study was conducted. The city of Bratislava, Slovakia, was selected for in-depth analysis due to its strong alignment with the research criteria and the practical advantages it offered. Bratislava demonstrates key characteristics of a smart city and has implemented several initiatives aimed at improving urban sustainability and waste management. Its performance is recognized in various regional smart-city assessments and EU-supported urban innovation projects.

In addition to meeting the formal selection criteria, Bratislava was chosen based on convenience factors, including the availability of high-quality, localized data from municipal sources and open data platforms, as well as access to strategic policy documents and operational reports from the city’s waste-management department. The research also benefited from existing academic collaborations with local institutions and universities, which facilitated access to expert interviews, stakeholder insights, and up-to-date documentation. Familiarity with the local language and administrative context further supported the feasibility and depth of the analysis, enabling a more accurate and context-sensitive case study.

Qualitative evaluation techniques were employed to synthesize conclusions from the analyses. Comparative methods were utilized to juxtapose theoretical frameworks with empirical findings, as well as to compare insights from different case studies and stakeholder interviews. The modeling method was applied to design an integrated framework for sustainable decision-making in smart-city waste management, incorporating elements of business-model innovation, digital transformation, and circular-economy strategies. Logical reasoning and inductive methods were used to derive general conclusions from the analytical and theoretical components, while deductive reasoning facilitated the formulation of original perspectives and policy recommendations. Synthesis was employed to integrate findings into a unified conceptual framework, highlighting interconnections among the studied aspects.

The research was further structured around the operationalization of key hypotheses, each tested using specific indicators (

Table 2. Operationalization of research hypotheses.

Research Question	Hypotheses	Indicators
What role do innovative business models and sustainable decision-making frameworks play in advancing smart-city waste management?	H1: Implementation of innovative business models enhances the sustainability and efficiency of urban waste-management systems.	Business-model elements, sustainability metrics, and efficiency indicators.
	H2: Many cities lack comprehensive strategies for integrating such models into waste management.	Existence of strategic plans, stakeholder engagement, and policy frameworks.
	H3: Successful integration of sustainable business models requires deliberate planning and stakeholder participation.	Planning processes, stakeholder involvement, and implementation outcomes.

):

The identification of these indicators enabled systematic analysis and hypothesis testing throughout the research process. This methodological approach is consistent with established procedures in recent studies on sustainable urban systems and business-model innovation [29].

The analytical results are presented in four sections: (1) analysis of case studies and relevant documents, (2) in-depth analysis of selected smart cities, (3) synthesis of stakeholder perspectives through interviews and secondary data, and (4) formulation of actionable recommendations and conceptual frameworks for sustainable waste management.

A schematic overview of the research process is provided in Figure 2, illustrating the progression from hypothesis definition and data collection to analysis, synthesis, and the development of policy recommendations.

4. Results

The following section presents a detailed account of the results obtained from the qualitative analysis of selected case studies and the comprehensive examination of the smart waste-management system in Bratislava. This analysis aims to elucidate the role of innovative business models and sustainable decision-making frameworks in enhancing the efficiency, sustainability, and economic viability of waste-management within smart cities. The case studies of Amsterdam, Barcelona, and Copenhagen illustrate the integration of circular-economy principles, information and communication technologies, and public–private partnerships, demonstrating significant improvements in waste diversion, resource recovery, and operational optimization. Complementing these findings, the empirical investigation of Bratislava’s large-scale deployment of sensor-based digital waste-management technologies and strategic circular-economy initiatives provides robust evidence of cost savings, increased transparency, and environmental benefits. Collectively, these results substantiate the critical importance of adopting comprehensive strategic frameworks to guide the transition towards sustainable smart-city waste-management systems.

4.1. Analysis of Case Studies

This study employed case study analysis and document examination methodologies to qualitatively examine and evaluate data from selected documents. The primary objective was to elucidate the role of business models in enhancing sustainable waste management at the smart city level. To achieve this, the analysis focused on the implementation of business models within a smart-city waste-management infrastructure.

4.1.1. Case Study A—Amsterdam

Amsterdam’s relevance as a smart city with sustainable waste-management elements was determined based on predefined criteria. The city boasts a well-established smart-city strategy emphasizing circular economy and waste reduction [17]. Innovative waste-management systems include underground vacuum waste collection and advanced recycling programs, contributing to Amsterdam’s high ranking in sustainability initiatives [18,30].

• Amsterdam City Description

Amsterdam’s waste-management system is characterized by its adherence to circular-economy principles and technological innovation. The underground vacuum waste-collection system reduces street traffic and enhances efficiency [30]. Advanced recycling facilities and waste-to-energy plants contribute to high waste diversion rates. Citizen participation is fostered through educational programs and digital platforms [18].

• Rationale for Business-Model Implementation

Amsterdam has established public–private partnerships to develop and operate its waste-management infrastructure [8]. The city has also adopted circular-economy business models, promoting resource recovery and waste reduction [16]. Digital platforms and data analytics optimize waste collection and processing [13].

• Benefits of Business-Model Implementation

The city has achieved high waste diversion rates, significantly reducing landfill waste. The underground vacuum system improves urban aesthetics and reduces traffic congestion. Digital platforms enhance citizen engagement and provide real-time waste-management information.

• Evaluation of the Amsterdam Case Study

Amsterdam demonstrates the effectiveness of integrating circular-economy principles and advanced technologies in waste management. The city’s focus on public–private partnerships and citizen engagement yields significant environmental and social benefits.

4.1.2. Case Study B—Barcelona

Barcelona’s relevance as a smart city with sustainable waste-management elements was identified based on predefined criteria. The city has a comprehensive smart-city strategy with a strong emphasis on sustainability. Innovative waste-management solutions include sensor-equipped bins and dynamic routing systems [19,21].

• Barcelona City Description

Barcelona’s waste-management system integrates IoT technologies and data-driven optimization. Sensor-equipped bins monitor fill levels and optimize collection routes [22]. Real-time data analytics improve waste processing and resource recovery. Citizen participation is encouraged through mobile applications and educational campaigns.

• Rationale for Business-Model Implementation

Barcelona has implemented smart waste-management solutions to enhance efficiency and reduce environmental impact. Data analytics optimize waste-collection routes and reduce operational costs. Public–private partnerships develop and implement innovative waste-management technologies.

• Benefits of Business-Model Implementation

The use of sensor-equipped bins and dynamic routing systems reduces waste-collection costs and improves efficiency. Real-time data analytics optimize waste processing and resource recovery. Citizen engagement increases through mobile applications and educational campaigns [30].

• Evaluation of the Barcelona Case Study

Barcelona demonstrates the benefits of integrating IoT technologies and data-driven optimization in waste management. The city’s focus on citizen engagement and public–private partnerships results in improved efficiency and environmental outcomes.

4.1.3. Case Study C—Copenhagen

Copenhagen’s relevance as a smart city with sustainable waste-management elements was determined based on predefined criteria. The city has a strong focus on sustainability and has implemented innovative waste-management solutions, ranking highly in global sustainability indices.

• Copenhagen City Description

Copenhagen’s waste-management system emphasizes waste prevention and resource recovery. Advanced recycling programs and waste-to-energy facilities have been implemented [24]. Citizen participation is promoted through educational campaigns and community-based initiatives.

• Rationale for Business-Model Implementation

Copenhagen has implemented circular-economy business models to promote waste prevention and resource recovery [18]. Public–private partnerships develop and operate the waste-management infrastructure. Data analytics optimize waste processing and resource recovery.

• Benefits of Business-Model Implementation

The city achieves high resource recovery rates and reduces landfill waste. Advanced recycling programs and waste-to-energy facilities contribute to a circular economy. Citizen participation increases through educational campaigns and community-based initiatives [24].

• Evaluation of the Copenhagen Case Study

Copenhagen demonstrates the effectiveness of integrating circular-economy principles and data analytics in waste management. The city’s focus on waste prevention and resource recovery yields significant environmental and social benefits.

4.1.4. Conclusion of the Analysis of Case Studies

Cities prioritize sustainable waste management to enhance the quality of life, reduce air pollution, and protect the environment. Implementing innovative business models in smart-city waste management improves efficiency and reduces environmental impact. The case studies highlight the unanimous agreement among cities on integrating information and communication technologies into waste-management infrastructure to enhance efficiency and service performance [19,21]. A summary of the results from the case studies is shown in the following table (

Table 3. Synthesis of case study findings.

Case Study	Rationale	Benefits	Requirements
A	− Circular economy [16] Public–private partnerships [8]	High waste diversion reduced traffic	Underground vacuum system Digital platforms
B	− IoT [20] − Data-driven optimization [21]	Reduced costs Increased efficiency	Sensor-equipped bins Real-time analytics
C	− Waste prevention [18] − Resource recovery [24]	High resource recovery Citizen engagement	Advanced recycling Optimizing data analytics

).

Cities aim to enhance waste-management efficiency by integrating sustainable decision-making frameworks and innovative technologies. In parallel, they are also considering the broader implications of waste management on urban sustainability. Transforming waste-management systems requires comprehensive strategic plans that gradually achieve sustainability goals over time.

Promoting sustainable waste management and, in parallel, using connected technologies to optimize waste collection and processing is a key task for smart cities. Reducing waste disposal costs and keeping waste-management operations efficient are two of the main objectives of waste management at the smart-city level with sustainable business models.

Based on the evaluation of the case studies, it was possible to evaluate Hypothesis 3. Adopting sustainable decision-making frameworks, such as the triple bottom line and circular-economy principles, is crucial for enhancing the efficiency, sustainability, and economic viability of waste-management systems. These frameworks ensure that waste management meets environmental needs efficiently, does not harm human health, and is economically viable for city dwellers. The integration of these principles in cities like Amsterdam, Barcelona, and Copenhagen has demonstrated significant improvements in waste diversion rates, resource recovery, and operational efficiency.

The analysis of the case studies showed that the implementation of sustainable decision-making frameworks identified a decrease in waste disposal costs while increasing the efficiency and sustainability of waste management. Considering the above data resulting from the analyses, it is possible to conclude and confirm Hypothesis 3: adopting sustainable decision-making frameworks, such as the triple bottom line and circular-economy principles, will indeed enhance the efficiency, sustainability, and economic viability of waste-management systems.

The analyses highlighted the importance of strategy in the context of a sustainable smart city, which lies in its key role in guiding and coordinating efforts to achieve long-term environmental, social, and economic goals. A well-defined and well-thought-out waste-management strategy, together with sustainable decision-making frameworks, provides a roadmap for the effective integration of smart technologies, urban planning, and resource management, contributing to the overall sustainability of the city. The results of the analysis of the case studies confirm that such a strategy can be defined as an aid for optimized resource use and increasing resilience. The strategy also builds on the challenges of waste reduction, environmental protection, and resource recovery, promoting a holistic and sustainable approach to the development of a sustainable smart city.

4.2. Comprehensive Examination of the Chosen Urban Center: Bratislava

• Introduction

Bratislava, the capital of Slovakia, is a highly relevant case for analyzing the role of business models in smart-city waste management due to its pioneering large-scale deployment of digital waste-management technologies combined with a strategic focus on circular-economy principles. The city’s Strategy for Municipal Waste Management 2021–2026 explicitly aims at transitioning to a circular economy, making Bratislava an ideal example to study sustainable decision-making frameworks in urban waste systems. The cooperation with Sensoneo, a Slovak technology leader in smart waste solutions, has enabled Bratislava to implement one of the world’s first comprehensive smart waste-management projects at scale, integrating sensor technology, data transparency, and innovative pay-as-you-sort models. This unique context provides robust empirical evidence for evaluating the impact of innovative business models and sustainable decision-making on waste-management effectiveness and sustainability [31].

• City Description

Bratislava’s waste-management system has been transformed through the installation of 1753 smart sensors in 85,000 waste containers across the city, including underground bins and glass containers. Additionally, 92 waste-collection vehicles were equipped with Sensoneo’s WatchDog devices, enabling automatic digital verification of waste pick-ups and dynamic route optimization. This infrastructure allows real-time monitoring of container fill levels, precise tracking of waste volumes per household, and enhanced transparency of waste streams. The system supports the city’s goal of implementing pay-as-you-sort models, incentivizing responsible waste sorting by residents [31]. The project is supported by a grant from the European Innovation Council and is aligned with Bratislava’s municipal waste strategy, which targets a circular economy transition by 2026 [32]. Bratislava has also invested in its own automated sorting facility, regaining control over the recycling process and reducing dependence on external contractors, which increases economic and environmental efficiency [33,34].

• Benefits of Business-Model Implementation

The implementation of innovative business models in Bratislava’s smart waste-management system has yielded multiple benefits, confirming hypotheses H1 and H3:

−

Increased Efficiency and Cost Savings (H1 Confirmation): The sensor-based monitoring and dynamic route optimization have reduced unnecessary waste-collection trips by up to 50%, leading to significant savings in fuel, labor, and vehicle maintenance costs. This optimization also reduces CO₂ emissions, contributing to environmental sustainability. The digitalization of waste infrastructure enables precise data collection, which improves operational efficiency and service quality [31,32].

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Enhanced Transparency and Sustainable Decision-Making (H3 Confirmation): Real-time data on waste volumes and container status enable the city to implement pay-as-you-sort models, encouraging residents to sort waste responsibly. Transparent waste streams and automatic service verification improve accountability and enable data-driven decision-making aligned with the triple bottom line framework. This integration of environmental, social, and economic considerations enhances the system’s sustainability and economic viability [32,33].

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Environmental and Social Benefits: The project contributes to cleaner public spaces and increased recycling rates, supporting Bratislava’s goal to reach a 65% recycling rate by 2035 and reduce landfill use. The introduction of textile waste collection with smart sensors has improved logistics efficiency by reducing collection time by 30% and costs by 20%, demonstrating the broader applicability of these models [35].

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Strategic Autonomy and Control: By investing in its own sorting facilities and integrating smart technologies, Bratislava has regained control over the entire waste-management value chain, aligning economic incentives with environmental goals and enabling continuous innovation [35,36].

Free Transcript of the Interview with the Mayor

In his interview, Bratislava Mayor Matúš Vallo emphasized that one of the city’s main ambitions is to create a transparent waste-management system through digitalization and the introduction of the “pay as you throw” (PAYT) system, which motivates residents to sort waste responsibly. The city is working with Sensoneo and the municipal company OLO to collect accurate waste data at the level of individual households, which will allow for more efficient collection planning and a fair payment system [36]. Bratislava has also invested in its own sorting facility, giving it control over recycling and reducing dependency on external suppliers. This approach is part of the city’s 2021–2026 strategy, which focuses on the transition to a circular economy and promotes sustainable decision-making in waste management. Awareness of waste sorting and management is growing in Bratislava, with a current municipal waste sorting rate of around 41%. The implementation of PAYT aims to financially incentivize residents to better sort, while digitization enables accurate tracking of waste production at the household level [37]. The project to digitize and optimize waste collection is research-based and will run until October 2022, with the results expected to contribute significantly to a more efficient and sustainable waste-management system in Bratislava [38,39].

• Conclusion from the Interview with the Mayor

Bratislava is implementing an extensive and comprehensive smart waste-management project. Supported by a grant from the European Innovation Council, the project involves the digitization of around 85,000 waste bins in the city using 1753 sensors from Sensoneo to monitor the fill levels of glass and half-empty bins across the city [40]. In addition, WatchDog devices are integrated into 92 collection vehicles to automatically digitize the waste-collection process and verify waste pick-up [41]. The system uses dynamic optimization of collection routes based on actual data, reducing unnecessary trips, saving fuel, and reducing emissions. The project also includes prototype testing to introduce a “pay as you sort” model that incentivizes residents to sort waste based on accurate data on the amount of waste sorted, recorded at the individual household level [31,32]. In addition to digitizing waste collection, Bratislava is investing in its own automated sorting equipment, giving it control over the entire recycling process and reducing dependence on external suppliers [42]. This is part of the city’s 2021–2026 strategy, which aims to move towards a circular economy and increase recycling rates to 65% by 2035, while also reducing the proportion of waste going to landfill from the current 11% to 5% [34,39]. At the same time, the city is developing other projects such as the introduction of cooking oil collection, the planned launch of a textile waste-collection system, the construction of a new recycling center in the Dúbravka district, and a composting line for garden and kitchen waste in Podunajské Biskupice. All these activities are part of a broader vision of sustainable and circular waste management that integrates modern technologies, environmental goals, and the social involvement of citizens [39]. Overall, the smart waste-management project in Bratislava brings expected benefits in the form of cleaner public spaces, more efficient waste collection, significant cost savings, and reduced environmental impacts, making the city a global leader in sustainable urban waste management [31,32,43].

• Summary

Bratislava’s experience demonstrates that integrating innovative business models based on digitalization, service-oriented approaches, and circular-economy principles significantly enhances the sustainability, efficiency, and economic viability of urban waste-management systems. The city’s deployment confirms Hypothesis H1, that such business models improve operational effectiveness and environmental outcomes, and Hypothesis H3, that embedding sustainable decision-making frameworks leads to more transparent, accountable, and resilient waste management. Bratislava thus provides a valuable model and framework for other cities aiming to adopt smart and sustainable waste-management solutions.

4.3. Comparative Analysis of Selected Case Studies

This comparative analysis, derived from a series of case studies on urban waste-management practices, investigates the implementation and adaptability of smart waste-management systems across a range of socio-economic and geographic contexts. The findings demonstrate that the success of smart waste-management initiatives is closely linked to the integration of advanced technological infrastructures, innovative business models, and effective stakeholder governance. In leading European smart cities, the deployment of Industry 4.0 technologies—including Internet of Things (IoT)-enabled, sensor-equipped waste bins, artificial intelligence, and data analytics—has facilitated real-time monitoring, dynamic route optimization, and predictive capacity planning. These capabilities contribute to significant reductions in operational costs, greenhouse gas emissions, and landfill reliance. In contrast, cities in developing regions, such as Bengaluru, face substantial obstacles to adopting such technologies, primarily due to infrastructural deficiencies, limited data transmission capabilities, and last-mile service delivery challenges.

Furthermore, the integration of circular economy-based business models—such as product-as-a-service and waste-as-a-service—has proven instrumental in transforming waste from a disposal burden into a resource-oriented value stream. However, many municipalities continue to operate within the confines of linear waste-management paradigms, which lack the systemic incorporation of sustainability principles and therefore limit operational efficiency. The role of governance and stakeholder engagement emerges as another critical determinant of adaptability. Cities with well-established mechanisms for multi-stakeholder collaboration—encompassing government entities, private-sector actors, and civil society—demonstrate more resilient and scalable waste-management solutions. Conversely, fragmented governance structures and socio-political complexity hinder the alignment of stakeholder interests, particularly in resource-constrained or culturally diverse urban settings.

Socio-economic context also exerts considerable influence on the capacity to implement and sustain smart waste initiatives. High-income cities possess greater institutional readiness and financial capacity to invest in integrated systems, whereas lower-income urban areas, often characterized by informal waste sectors, require tailored, context-sensitive approaches to achieve comparable outcomes. The environmental and economic impacts of these divergent approaches are evident: cities that have embraced holistic integration of technology, policy, and innovation report improved sustainability metrics, while those lacking such integration continue to grapple with elevated environmental degradation and inefficiencies.

Ultimately, this analysis underscores the necessity of adopting adaptive, context-aware frameworks that synergize technological innovation, sustainable business practices, and inclusive governance models. Such an integrated approach not only enhances the operational and environmental performance of urban waste systems but also aligns with broader global sustainability objectives, ensuring that smart waste management remains both economically viable and socially equitable across diverse urban landscapes. The key differentiators and constraints affecting the implementation and adaptability of smart waste-management strategies across diverse urban contexts are systematically outlined in

Table 4. Comparative summary of key differentiators and adaptability constraints.

Aspect	Leading European Smart Cities	Developing/Challenged European Cities (e.g., Bratislava)	Adaptability Issues Identified
Technology Adoption	− Advanced IoT, AI, real-time analytics	− Infrastructure and data-transmission limitations	− Infrastructure gaps hinder technology deployment
Business-Model Innovation	− Circular economy, product-as-a-service, waste-as-a-Service	− Predominantly traditional linear models	− Lack of integrated business models reduces impact
Stakeholder Coordination	− Strong multi-stakeholder engagement	− Fragmented governance and coordination	− Socio-political challenges limit collaboration
Socio-Economic Context	− High resource availability and institutional capacity	− Limited financial and institutional capacity	− Need for context-specific, adaptable models
Environmental and Economic Impact	− Reduced emissions, costs, and landfill use	− Higher pollution and inefficiencies	− Partial adoption limits sustainability benefits

, which provides a comparative summary between leading European smart cities and developing or challenged European cities such as Bratislava. This table synthesizes findings related to technological adoption, business-model innovation, stakeholder coordination, socio-economic context, and environmental and economic impacts, highlighting specific barriers that hinder scalability and effectiveness in less-resourced environments.

The comparative analysis highlights that the success and adaptability of smart-city waste-management strategies depend heavily on the integration of innovative business models with advanced technologies, supported by effective governance and stakeholder collaboration. While leading European cities showcase best practices in this integration, many cities face significant challenges related to infrastructure, socio-economic conditions, and governance that impede the adoption and scalability of smart waste solutions. To overcome these adaptability issues, tailored, context-sensitive frameworks that combine technological innovation with sustainable business models and inclusive stakeholder engagement are essential for advancing resilient and efficient urban waste-management systems.

This holistic approach not only enhances operational efficiency and environmental outcomes but also aligns with global sustainability goals, ensuring that smart waste management is economically viable and socially inclusive across diverse urban contexts.

4.4. Proposals for Supporting the Implementation of Smart Waste-Management Business Models in Bratislava

Based on the comparative analysis of selected case studies, including an in-depth examination of Bratislava’s ongoing smart waste-management initiatives, a strategic framework has been formulated to enhance the sustainability, operational efficiency, and public engagement within the city’s waste-management system. Drawing on cross-case insights, the proposed solution emphasizes the integration of innovative business models with advanced technological tools to optimize waste-collection processes and support the adoption of circular-economy principles. This aligns with the objectives outlined in Bratislava’s Strategy for Municipal Waste Management 2021–2026, which envisions a comprehensive transition toward a transparent, environmentally sustainable, and economically viable waste-management system over a five-year period.

• Integration of Real-Time Waste Monitoring and Dynamic Collection Optimization

A key proposal is the full deployment and further development of Sensoneo’s smart waste-management platform. This business model shifts from traditional fixed-route collection to demand-driven services, reducing unnecessary trips, lowering operational costs, and minimizing environmental impacts such as CO₂ emissions. The platform also facilitates the testing and gradual introduction of “pay as you sort” (PAYT) models, which financially incentivize residents to sort waste responsibly by linking waste generation data to billing at the household level [43]. This data-driven, service-oriented business model exemplifies how smart-city technologies can transform urban waste management into a more sustainable and efficient system [31,32].

The implementation timeline for expanding these digital services is set to continue progressively, with expected benefits including cleaner public spaces, improved service quality, and significant cost savings on collection mileage and emissions. Citizen engagement is enhanced through transparent data access and the possibility of monitoring waste generation patterns, aligning with the city’s circular-economy goals.

• Investment in Autonomous Sorting Facilities and Circular-Economy Enablement

Another strategic element supporting sustainable decision-making is Bratislava’s investment in its own automated sorting facility. By regaining control over the sorting and recycling processes, the city reduces dependency on external contractors, thereby increasing economic resilience and environmental accountability [44]. This vertical integration within the waste-management value chain enables Bratislava to better align operational decisions with circular-economy principles, such as maximizing material recovery and minimizing landfill use. The sorting facility supports the city’s target to increase recycling rates to 65% by 2035 and reduce landfill disposal to 5%, contributing to broader sustainability and climate objectives [45].

• Expansion of Circular Waste Services and Citizen-Centric Initiatives

Complementing technological and infrastructural investments, Bratislava is advancing additional projects, including the introduction of kitchen oil collection services, the planned launch of textile waste collection by 2025, and the development of new recycling and composting centers in key districts. These initiatives are integrated into the city’s sustainable business-model framework, emphasizing stakeholder engagement, environmental impact reduction, and long-term economic viability [46]. The city’s approach demonstrates how combining innovative business models with sustainable decision-making frameworks can holistically improve urban waste-management systems while fostering citizen participation and environmental stewardship [39,44].

This adapted framework for Bratislava illustrates the critical role of innovative business models—centered on digitalization, service optimization, and circular-economy integration—in driving sustainable decision-making in smart-city waste management. The city’s experience provides a replicable model for other urban areas seeking to enhance waste system efficiency, environmental outcomes, and economic sustainability through smart technologies and stakeholder collaboration [46].

• Supporting the Implementation of Smart-City Waste-Management Business Models in Bratislava

Based on extensive analyses of Bratislava’s ongoing smart waste-management initiatives, a strategic framework has been developed to enhance the sustainability, efficiency, and transparency of the city’s waste-management system. The city aims to leverage innovative business models integrated with advanced digital technologies to optimize waste collection, increase recycling rates, and promote circular-economy principles in line with its Strategy for Municipal Waste Management 2021–2026 [47].

Aligned with the city’s ambition to transition to a circular economy, Bratislava is also piloting “pay as you sort” (PAYT) models that financially incentivize residents to sort waste responsibly based on precise data collected at the household level. This approach fosters behavioral change and enhances the economic viability of the waste-management system [39].

The city’s goals include achieving a 65% recycling rate by 2035 and reducing landfill disposal from 11% to 5%. To support these objectives, Bratislava has invested in its own automated sorting facility, regaining control over recycling processes and reducing reliance on external contractors, thus improving both environmental and economic outcomes [39,44].

This framework also emphasizes transparency and stakeholder engagement through real-time data sharing and adaptive management, ensuring continuous performance monitoring and system improvement. The integrated business models and digital infrastructure form the foundation for sustainable decision-making that balances environmental, economic, and social criteria, thereby enabling Bratislava to become a leading example of smart-city waste management [45,46].

This study presents Bratislava’s smart waste-management initiative as a comprehensive exemplar of integrating innovative business models and sustainable decision-making frameworks underpinned by advanced digital technologies, offering a replicable model for cities striving to establish efficient, transparent, and circular waste systems (see Figure 3).

Complementing this technological foundation, Bratislava has implemented innovative business models such as the “pay as you sort” (PAYT) system, which incentivizes responsible waste sorting by linking household waste production data to billing, and has invested in vertical integration through its own automated sorting facility, enhancing control over recycling processes and reducing reliance on external contractors to bolster economic and environmental sustainability [41,48]. These components are embedded within a sustainable decision-making framework guided by the triple bottom line approach, balancing environmental, economic, and social dimensions with transparency and stakeholder engagement ensured through open data sharing and adaptive management practices that enable continuous performance monitoring and system improvement [49]. The integrated framework has yielded measurable outcomes, including improved operational efficiency via reduced collection mileage and emissions, enhanced environmental performance through increased recycling rates and landfill diversion, economic viability via cost savings and optimized resource use, and strengthened citizen engagement that promotes behavioral shifts toward circular-economy principles [49,50].

This model exemplifies how smart-city waste management can leverage digital technologies and innovative business models within a sustainability-oriented governance framework to achieve efficient, transparent, and resilient urban waste systems.

• Smart-City Waste-Management Decision-Making Framework (SCWM-DM)

The Smart-City Waste-Management Decision-Making Framework (SCWM-DM) offers an innovative approach to optimizing urban waste systems by integrating advanced business models, smart technologies, and sustainable decision-making principles. Grounded in the context of Bratislava—a city actively advancing its municipal waste management through digitization and circular-economy strategies—this framework synthesizes modular business models with IoT, AI, and blockchain technologies to enhance operational efficiency, environmental outcomes, and stakeholder engagement [51]. Bratislava’s experience with smart waste projects, such as those led by Sensoneo, exemplifies the practical application of such integrated solutions, achieving significant cost reductions and improved transparency in waste-collection processes. The SCWM-DM framework thus provides a scalable and participatory blueprint that aligns with Bratislava’s goals to transition towards a circular economy, reduce landfill dependency, and foster sustainable urban livability through data-driven, technology-enabled governance [1,10].

This model synthesizes business models, smart technologies, and sustainable decision-making principles to optimize waste-management systems in urban environments (Figure 4).

1. Core Components

1.1 Business-Model Innovation

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Modular Business Models: Enable flexibility in service delivery by decoupling waste collection, processing, and resource recovery modules [10].

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Circular-Economy Principles: Transform waste into resources via product-as-a-service (PaaS) and industrial symbiosis models [1].

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Value Propositions: Focus on cost reduction, revenue diversification (e.g., carbon credits), and stakeholder collaboration [52].

1.2 Smart Technology Integration

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IoT and Sensor Networks: Real-time monitoring of waste levels, enabling dynamic route optimization [13].

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AI and Predictive Analytics: Forecast waste generation patterns and optimize sorting processes [21].

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Blockchain: Enhance transparency in waste supply chains and incentivize recycling through tokenized systems [23].

1.3 Sustainable Decision-Making

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Triple Bottom Line (TBL): Balance economic viability, environmental impact reduction, and social equity [18].

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Life-Cycle Assessment (LCA): Evaluate systemic impacts of waste-management strategies [27].

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Stakeholder Governance: Engage municipalities, private firms, and citizens in co-designing solutions [14].

2. Interconnected Processes

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Data-Driven Workflow: IoT sensors collect waste data → AI processes insights → blockchain ensures traceability → business models monetize outcomes.

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Feedback Loops: Sustainability metrics (e.g., reduced landfill use) inform iterative improvements to technology and business strategies.

3. Strategic Outcomes

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Operational Efficiency: 30–50% cost reduction in waste collection via route optimization [2].

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Environmental Benefits: 20–40% lower carbon emissions through circular resource loops [18].

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Urban Livability: Enhanced public health and citizen engagement through transparent, participatory systems [11].

4. Implementation Challenges

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Financial Barriers: High upfront costs for IoT infrastructure [25].

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Regulatory Gaps: Misalignment between EPR policies and decentralized waste-to-energy models [17].

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Behavioral Resistance: Low adoption of PaaS models due to entrenched linear economy practices [8].

The SCWM-DM framework addresses the hypothesis by demonstrating how business models act as conduits for deploying IoT, AI, and blockchain technologies, thereby enhancing waste-management sustainability. The model positions modular and circular business models as foundational structures that enable cities to pivot from cost-centric to value-centric waste systems. For instance, IoT-enabled smart bins reduce collection frequency, while AI-driven analytics minimize overcapacity at processing facilities, both outcomes that are directly tied to the efficiency gains hypothesized [13,21].

Blockchain’s role in certifying recycling compliance creates market-driven incentives for stakeholders, aligning with the TBL’s economic and environmental pillars [23]. Meanwhile, the framework’s feedback mechanisms ensure continuous alignment with sustainability goals, such as reducing landfill dependency through LCA-informed decisions [27].

This model underscores that technological adoption alone is insufficient; its efficacy depends on business models that redistribute risks, rewards, and responsibilities across stakeholders. Municipalities, for example, may partner with tech firms under PPP arrangements to mitigate capital barriers, while citizens engage via gamified recycling apps, a strategy validated in cities like Amsterdam and Singapore [11].

In conclusion, the SCWM-DM framework provides a scalable blueprint for cities to operationalize the hypothesis, emphasizing that sustainability in waste management emerges from the interplay among innovation, business logic, technology, and participatory governance. Bratislava’s large-scale deployment of smart waste-management technologies and business innovations serves as a practical embodiment of the SCWM-DM framework [52]. The city’s approach demonstrates how modular business models, IoT and AI-enabled data analytics, and blockchain-based transparency can collectively optimize waste collection, promote circular-economy goals, and enhance urban sustainability. This synergy validates the SCWM-DM hypothesis that sustainable waste management in smart cities arises from the integration of innovative business logic, advanced technologies, and participatory governance structures [53].

Thus, the SCWM-DM framework provides a conceptual and operational blueprint that Bratislava’s ongoing smart waste-management project exemplifies and advances in real-world urban settings.

• Conceptual Model of Smart-City Waste Management

The following figure illustrates the conceptual architecture of a smart-city waste-management system, emphasizing the integration of advanced digital technologies, data-driven analytics, and participatory governance to achieve sustainable urban outcomes. The model is structured as a process flow, beginning with the establishment of a smart waste infrastructure, which serves as the foundational layer for subsequent operations (Figure 5).

The system’s operational core is composed of three primary input streams:

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Smart collection vehicles equipped with dynamic route optimization capabilities;

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An IoT sensor network enabling real-time monitoring of waste bin fill levels;

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A feedback and monitoring mechanism that incorporates both key performance indicators (KPIs) and citizen input.

These streams converge within a centralized data collection layer, which aggregates operational data from across the system. This data is subsequently processed using AI and predictive analytics to forecast waste-generation patterns and optimize collection and sorting strategies. The resulting insights drive improvements in operational efficiency, manifesting as reduced costs and lower emissions.

Parallel to these processes, the model incorporates blockchain systems to ensure traceability and facilitate incentive mechanisms. This technological layer supports transparency and compliance and enables token-based rewards, thereby incentivizing stakeholder participation and fostering responsible behaviors.

The integration of these technological and organizational innovations culminates in enhanced environmental sustainability, characterized by reduced landfill usage and increased recycling rates. Ultimately, these improvements contribute to greater urban livability, reflected in a cleaner urban environment and higher levels of citizen engagement.

5. Discussion

The successful implementation of smart waste-management solutions within urban contexts necessitates strict adherence to comprehensive planning and the concerted collaboration among public authorities, private-sector entities, and the citizenry. Although smart-city technologies present substantial opportunities for optimizing waste-collection processes and advancing sustainability objectives, several challenges must be systematically addressed to ensure effective deployment.

A principal advantage of smart waste-management systems lies in the deployment of IoT-enabled sensors that facilitate real-time monitoring of waste-container fill levels, thereby enabling dynamic scheduling of collection activities [53,54,55,56]. This approach has been demonstrated to reduce unnecessary collection trips, decrease fuel consumption, and mitigate greenhouse gas emissions, as evidenced by empirical data from cities such as Amsterdam [54,55]. Such efficiencies contribute not only to environmental benefits but also to the reduction of operational expenditures, enhancing the overall sustainability of waste-management frameworks.

Nonetheless, the initial capital expenditure associated with the installation of IoT infrastructure—including sensor devices and communication networks—poses a significant barrier, particularly for municipalities constrained by limited financial resources [5,56,57]. Furthermore, the integration of smart bins into pre-existing waste-management systems often requires extensive logistical adjustments, including the redesign of collection routes and schedules [58,59]. The elevated maintenance costs inherent in advanced technological solutions, relative to conventional waste bins, may also impede long-term viability [60].

Concerns pertaining to data privacy and security emerge due to the continuous collection and transmission of waste-related information. The establishment of robust cybersecurity protocols and transparent data-governance frameworks is imperative to safeguard public trust and protect individual privacy rights [61,62]. Additionally, social acceptance and public awareness constitute critical determinants of the successful adoption of smart waste technologies. Resistance to change and insufficient understanding of the benefits associated with these systems may hinder active citizen participation, which is essential for their efficacy.

The embedding of smart waste management within the broader smart-city paradigm facilitates enhanced environmental monitoring and supports the principles of the circular economy by promoting recycling and resource recovery. The provision of real-time information to residents regarding waste-collection schedules and bin statuses fosters increased public engagement and accountability [63,64]. This participatory model aligns with sustainable urban-development imperatives and assists municipalities in managing escalating waste volumes driven by demographic growth and urbanization.

Emerging technologies, including artificial intelligence and big data analytics, augment the capacity to forecast waste-generation patterns and optimize collection logistics [53,65]. Future research endeavors should investigate the applicability of blockchain technology for ensuring transparent and secure waste tracking, alongside the development of standardized frameworks for the integration of heterogeneous technological solutions into cohesive waste-management strategies.

Moreover, the role of policy and institutional frameworks cannot be overstated in shaping the success of smart waste initiatives. Regulatory clarity, interdepartmental coordination, and capacity-building measures are essential to ensure the effective integration of technological systems into existing municipal operations. As highlighted by recent studies, fragmented governance structures and inconsistent policy mandates often result in the duplication of efforts or underutilization of infrastructure [66,67]. Incentive structures, such as public–private partnerships, subsidies, or performance-based grants, can help offset financial burdens and foster innovation. Importantly, regulatory frameworks must remain adaptive to evolving technologies while ensuring accountability, equity, and environmental compliance. Integrating digital waste strategies into broader national or regional sustainability plans can amplify their long-term impact and coherence.

In summary, while smart waste-management systems hold considerable promise for enhancing urban sustainability, their successful implementation is contingent upon overcoming financial, technical, social, and regulatory challenges. Effective governance, characterized by collaboration, continuous innovation, and active citizen engagement, is indispensable for actualizing the full potential of these technologies in fostering cleaner, more efficient, and resilient smart cities.

6. Conclusions

The primary aim of this article was to address the following research question: what role do innovative business models and sustainable decision-making frameworks play in advancing smart-city waste management? To this end, the article sought to propose recommendations for integrating sustainable business models into urban waste-management systems, drawing on theoretical analysis, best practices, and case-study insights.

The novelty of this article lies in the following three main aspects: (1) the intersection of business-model innovation, smart-city concepts, and sustainability in the context of waste management; (2) the comparative analysis and synthesis of best practices from leading smart cities; and (3) the development of a conceptual framework for sustainable decision-making in urban waste management.

A key knowledge gap addressed by this study is the limited integration of business-model theory with practical smart-city waste-management strategies. While existing research often focuses on technological or operational aspects, this article highlights the pivotal role of business models—such as product-as-a-service, circular economy, and waste-as-a-service (WaaS)—in transforming waste management from a cost center to a value-generating, sustainable urban service.

Smart cities are tasked with creating urban environments that enhance the quality of life, foster economic growth, and promote environmental stewardship. In waste management, this translates to leveraging digital technologies (including IoT, AI, and data analytics) and innovative business models to optimize resource use, reduce environmental impact, and deliver efficient, citizen-centered services. The findings underscore that sustainable business models, when combined with advanced technologies and data-driven decision-making, are essential for achieving long-term sustainability in urban waste management.

The following research hypotheses formulated in this article were confirmed:

• H1: Implementing innovative business models, such as product-as-a-service and circular-economy principles, in smart-city waste-management systems significantly enhances sustainability and efficiency.
• H2: The integration of advanced technologies (IoT, AI, blockchain) into waste-management processes is a key driver of operational optimization and environmental improvement.
• H3: Embedding sustainable decision-making frameworks (e.g., triple bottom line, circular economy) within business models leads to more resilient, efficient, and sustainable waste-management systems.

The practical implications of this article extend to policymakers, city managers, and stakeholders in medium and large urban areas. The recommendations derived from the analysis include the following:

Developing a clear smart-city vision that incorporates sustainable waste management as a core pillar.

• Fostering collaboration among public authorities, private-sector partners, and citizens to co-create innovative waste-management solutions.
• Embracing digital transformation by investing in the IoT, AI, and data analytics for real-time monitoring and optimization of waste processes.
• Promoting circular-economy principles through product-as-a-service models, extended producer responsibility, and closed-loop supply chains.
• Ensuring transparency and stakeholder engagement to build trust and encourage citizen participation in waste-reduction initiatives.
• Implementing robust business-model frameworks (such as BMC, TBL, and CBM) to guide the design, deployment, and scaling of sustainable waste-management practices.

Future research should explore the scalability of these business models across different city sizes and contexts, investigate the role of behavioral and regulatory factors in adoption, and assess the long-term economic and environmental impacts of smart waste-management innovations. Expanding the number of case studies and incorporating diverse urban settings will further enhance the generalizability of the findings.

This study is subject to several limitations. Although it provides a comprehensive theoretical framework supported by an analysis of four case studies, the selection may not fully encompass the wide variability of urban waste-management challenges across different geographic, economic, and infrastructural contexts. Furthermore, the investigation primarily focuses on technological and conceptual aspects, with limited exploration of the social and economic costs associated with the implementation and maintenance of smart waste-management systems. Future research should aim to incorporate empirical data from a broader and more diverse set of cities and actively engage a wider range of stakeholders, including citizens, industry actors, and policymakers. Additionally, the development of detailed, stepwise implementation roadmaps that realistically address construction and maintenance expenses would enhance the framework’s policy relevance and practical applicability. In summary, the integration of innovative business models, advanced digital technologies, and sustainable decision-making frameworks is essential for transforming urban waste management into a driver of smart, sustainable, and resilient cities.