Dacheng Environmental Technology: Designing Artificial Intelligence Solution for Waste Recycling

Yijie Dou, Qinghua Zhu, Ning Su

Product #:W50487

Supplier:Ivey

Discipline:Strategy, Sustainability

Setting:2026

Details:Case (PDF) • 8 pages • 2026-06-18

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Plastic waste recycling was critical for reducing environmental pollution, conserving natural resources, and mitigating the harmful impacts on human health. Hainan Dacheng Environmental Technology Co. Ltd. (DC) was a leader in the plastic recycling industry in China. Facing rising labour costs, an aging workforce, and intensifying rivalry, the company considered adopting and designing sorting technologies based on artificial intelligence (AI), which promised higher efficiency and accuracy. Yet, the decision involved significant risks, including immature technology, high investment, and limited organizational readiness. Balancing potential first-mover advantages against uncertainty, DC had reached a critical strategic crossroads.

Learning Objectives

This case is suitable for executive and graduate management courses in operations management, innovation, and strategic management. It is also relevant for managers working in areas such as digital transformation, corporate social responsibility, and circular economy.

After reviewing the suggested reading material and analyzing the case, students will be able to do the following:
- Gain an in-depth understanding of how AI technology drives advancements in waste recycling management and makes an environmental impact.
- Apply the technology–organization–environment framework to AI technology adoption.
- Learn the advantages and disadvantages of leveraging innovative technologies for societal challenges.