No full-text available
To read the full-text of this research,
you can request a copy directly from the author.
Strategie Management of Product Recovery
Abstract
A growing concern for durable product manufacturers is how to manage the products they manufacture when they reach their end of life (EOL). In part, this attention is motivated by a growing number of countries across Europe and East Asia that are enacting legislation that imposes greater responsibilities on manufacturers for managing their EOL products. Even in non-regulated markets, however, some manufacturers are engaging in product recovery to reduce production costs, enhance brand image, meet changing customer expectations, protect aftermarkets, and preempt pending legislation or regulations. This article explains when manufacturers should engage in product recovery efforts through partnerships, alliances, or vertical integration and when they should leave this task to independent firms. Technologies that enhance the productivity of product recovery, the level of uncertainty associated with reverse logistics, diverse manufacturing-related capabilities, the uniqueness of recovered assets, and the desire to avoid dependence on other organizations are key determinants that shape the industrial organization of EOL product recovery.
... Companies interest shifted to having roles in product recovery due to environmental regulations. By employing fewer raw materials to recover the E O L Ps, businesses may reduce their production costs while protecting their aftermarkets services, meeting customer expectations, and enhancing their brand image [1]. Recovering E O L Ps involves the following steps: collecting the E O L Ps, moving them to the remanufacturing areas, disassembling and separating components for remanufacturing, reusing, recycling some components, and disposing of the others [2,3], as depicted in Fig. 1. ...
... Designing a disassembly system requires formulating complex optimization problems such as disassembly balancing, sequencing, B Najat Almasarwah Najat.eid@mutah.edu.jo 1 Department of Industrial Systems Engineering, Mutah University, Alkarak 61710, Jordan and planning [4]. Hence, it is essential to have effective mathematical tools or models, simulation models, heuristics, or metaheuristics to enhance performance measures. ...
... Disassembly times based on skills for EOLP1 ...
Human–robot cooperation plays a vital role in enhancing the advantages of employing humans and robots in disassembly processes, which leads to create several operating scenarios. Despite the importance of human–robot cooperation in the disassembly process, the existing literature has some limitations and does not appropriately cover resource skill level issues. The paper aims to design a human–robot two-sided disassembly (HRTSD) line and SERU disassembly units considering the variety in the disassembly times caused by the resources’ skill levels and the quality of End-of-Life products (EOLPs). The main contribution of this paper is to help the decision-makers choose between the HRTSD lines and SERU disassembly units in case EOLPs are assigned to be disassembled in the remanufacturing system. In this paper, two EOLPs are disassembled in a mixed model. The performance measures utilized for the behavior of the HRTSD lines and SERU disassembly units are the cycle time, output rate, and average skill variability. The average variability in skill is calculated based on the skill variability per resource(s) and task(s). Findings show that the HRTSD line can dominate the performance of SERU disassembly units as the average skill variability increases () resulting from the quality of EOLPs and resources’ skill levels, and vice versa.
... Major technical cycles for product circularity may be operationalized as CSO for repair, reuse, remanufacture, and recycle (Kirchherr et al. 2017;Stahel 1984). Product circularity may generate a competitive advantage beyond product sales by reducing costs, developing brand value, matching new demands, and protecting aftermarkets (Toffel 2004). With its strategic direction, the perspective of product circularity goes beyond traditional waste management approaches and EPR by prioritizing slowing loops for product lifetime extension and closing loops for material recovery over narrowing loops for production efficiencies . ...
... Both original equipment manufacturers (OEMs) and retailers increasingly engage in circular service operations to slow and close product cycles beyond mandatory extended producer responsibility (EPR) mechanisms (Fleischmann, 2003;Lifset, Atasu, & Tojo, 2013). Their motivations are to reduce costs, develop brand value, match new demands, and protect aftermarkets (Toffel, 2004) in order to generate competitive advantage beyond product sales. This also leads to new loop operators emerging in the market (Canning, 2006;Stindt et al., 2017). ...
... For CSO and environmental management in general, a TCE perspective has been commonly utilized in various studies on coordination mechanisms (Morana & Seuring, 2007;Rosen, Bercovitz, & Beckman, 2000;Toffel, 2003Toffel, , 2004. A life cycle orientation further increases coordination requirements due to the extensive interactions with up-anddownstream actors in the value chain (Boons, 2002;Sharfmanet al., 1997). ...
The circular economy (CE) can be understood as a system-level innovation with implications beyond an individual firms value chain. Therefore, a CE transition leads to a dynamic situation concerning actor constellations and rearrangement in the value chain and beyond. This dissertation focuses on complementary circular service operations (CSO), such as repair, reuse, refurbish, and recycling, that contribute to the full functionality of products, components, and materials over their entire lifetime. It thus provides insights into how manufacturers and retailers can increase their competitive advantage while promoting product lifetime extension.
This cumulative dissertation contributes to existing strategic management theory with a con-trasting approach by transferring the organizational boundary decision (make-or-buy) from an upstream production perspective towards recovery processes in the downstream within the CE context. Based on a qualitative case study research design in the context of durable consumer electronics (smartphones), it analyzes coordination mechanisms for product circularity covering socio-technical, product-service, and product-technology levels. Part of the research was the establishment of the Innovation Network aiming at Sustainable Smartphones (INaS) as a circular economy living lab (CELL). It combines participatory research from sustainability science with a business network approach to bring together previously unrelated actors in a cross-value chain setting.
Managing strategic product circularity requires central coordinators to engage with previously unrelated actors in the value chain to develop circular operational skills and safeguard their central positions. Based on multiple case studies, a typology of circular value creation architec-tures (CVCA) is proposed. It distinguishes a continuum between coordinated and uncoordinated architectures. Central coordinators can either vertically integrate CSO, collaborate with loop operators in strategic networks, conduct outsourcing, or do nothing to offer adequate CSO (laissez-faire). A processual perspective demonstrates that slowing resource loops requires a careful combination of repair, reuse, and refurbishing activities as well as their deliberate integration into a firms strategy. While coordinated architectures have considerable incentives to adapt their product design towards circularity, they also face trade-off solutions. Central coordinators engaging in strategic product circularity, can follow either open or closed circularity approaches. While the latter takes maximum advantage of vertical integration but may lead to circular monopolies, open circularity allows for distributed service ecosystems to involve various circular complementors.
Overall, this dissertation strengthens the actor perspective in circular economy research and provides firms with strategic guidance for their positioning within a CE. Further research and societal discourse are required to investigate the balance between autonomy and control rights in circular ecosystems and to further explore the implications of open and closed circularity.
... Both original equipment manufacturers (OEMs) and retailers increasingly engage in circular service operations to slow and close product cycles beyond mandatory extended producer responsibility (EPR) mechanisms (Fleischmann, 2003;Lifset, Atasu, & Tojo, 2013). Their motivations are to reduce costs, develop brand value, match new demands, and protect aftermarkets (Toffel, 2004) in order to generate competitive advantage beyond product sales. This also leads to new loop operators emerging in the market (Canning, 2006;Stindt et al., 2017). ...
... Previously, loop operations were dominated by recycling-focused legal obligations arising from EPR legislation, which were regularly outsourced to third parties (Johnson, McMahon, & Fitzpatrick, 2018;Krikke, 2010;Lifset etal., 2013). The strategic perspective on voluntary reverse operations is less prominent (Esty & Porter, 1998;Toffel, 2004). But it has become evident that OEMs and retailers increasingly follow strategic motives (Ferguson & Toktay, 2006;Krikke, Hofenk, & Wang, 2013). ...
... For CSO and environmental management in general, a TCE perspective has been commonly utilized in various studies on coordination mechanisms (Morana & Seuring, 2007;Rosen, Bercovitz, & Beckman, 2000;Toffel, 2003Toffel, , 2004. A life cycle orientation further increases coordination requirements due to the extensive interactions with up-and downstream actors in the value chain (Boons, 2002;Sharfman et al., 1997). ...
Slowing and closing product and related material loops in a circular economy (CE) requires circular service operations such as take-back, repair, and recycling. However, it remains open whether these are coordinated by OEMs, retailers, or third-party loop operators (e.g., refurbishers). Literature rooted in the classic make-or-buy concept proposes four generic coordination mechanisms and related value creation architectures: vertical integration, network, outsourcing, or doing nothing (laissez-faire). For each of these existing architectures, we conducted an embedded case study in the domain of smartphones with the aim to better understand how central coordinators align with actors in the value chain to offer voluntary circular service operations. Based on the above coordination mechanisms, our central contribution is the development of a typology of circular value creation architectures (CVCAs) and its elaboration regarding circular coordination, loop configuration, and ambition levels. We find that firms following slowing strategies (i.e., repair, reuse, and remanufacturing) pursue higher degrees of vertical integration than those following closing strategies (i.e., recycling) because of the specificity of the assets involved and their greater strategic relevance. The typology also shows that higher degrees of vertical integration enable higher degrees of loop closure (i.e., from open to closed loops) and better feedbacks into product design. Furthermore, we differentiate the understanding on third-party actors by distinguishing between independent and autonomous loop operators. Overall, we strengthen the actor perspective in product circularity literature by clarifying the actor set, their interrelationships, and how they form value creation architectures.
... (1) general strategic management of the issues related to sustainable marketing (Zhu et al., 2005;Çankaya and Sezen, 2018;Laari et al., 2016;Mathiyazhagan et al., 2014;Meng et al., 2021;Chan et al., 2012;Toffel, 2004;Lam, 2012: Fleischmann et al., 2002;Dey et al., 2019); ...
... Cluster 5 -green supply chain and quality issues Reverse logistics AND Relationship marketing (Östlin et al., 2008); Function-Oriented PSS (Mont et al., 2006); Competitiveness (Jayaraman and Luo, 2007); Green market development (Toffel, 2004;Lee and Lam, 2012;Fleischmann et al., 2002); Customer behavior (Atasu et al., 2008); Customer satisfaction (Shulman et al., 2009;Pishvaee et al., 2010;) Customer Green distribution AND Sustainable marketing (Çankaya and Sezen, 2019). SCM AND Competitiveness in Industry 4.0 (Manavalan and Jayakrishna, 2019); Customer collaboration (Blome et al., 2014); Customer segmentation (Foerst et al., 2015); Process innovation (Dey et al., 2019) Green LOGISTICS AND Green marketing (Chan et al., 2012); Relationship marketing (Chen et al., 2016;Mangla et al., 2013). ...
... Since the total number of OEMs engaging in remanufacturing represents only a small fraction of all OEMs on the market [10,15,16], there are likely barriers, challenges, or similar that prevent more of them from initiating remanufacturing. While there are many benefits of remanufacturing -such as increased profitability [10,17], increased communication between end-users and OEMs [8], enabling competition between low-cost and remanufactured premium products [18], reduction of material and energy usage [18], lower costs for users and providers [18], reaching new customer segments [19], protection of aftermarkets [20,21], and improvement of brand image [21] -all cannot be embraced and achieved at each individual OEM. The barriers to initiating remanufacturing are also many (see, e.g., [22][23][24]), and it can be enough that one barrier is unavoidable for an OEM not to initiate. ...
... Since the total number of OEMs engaging in remanufacturing represents only a small fraction of all OEMs on the market [10,15,16], there are likely barriers, challenges, or similar that prevent more of them from initiating remanufacturing. While there are many benefits of remanufacturing -such as increased profitability [10,17], increased communication between end-users and OEMs [8], enabling competition between low-cost and remanufactured premium products [18], reduction of material and energy usage [18], lower costs for users and providers [18], reaching new customer segments [19], protection of aftermarkets [20,21], and improvement of brand image [21] -all cannot be embraced and achieved at each individual OEM. The barriers to initiating remanufacturing are also many (see, e.g., [22][23][24]), and it can be enough that one barrier is unavoidable for an OEM not to initiate. ...
To sustain prosperous and lucrative business opportunities, companies are required to constantly evolve to remain competitive. The way this strategy emerges depends on how their offerings are positioned in the market. For example, certain companies are focusing on increasing operational efficiency to achieve improved key performance indicators, while others are exploring new ways of operating. In this paper, the latter aspect is targeted in the context of initiating remanufacturing. This research aims to describe the incentives behind initiating remanufacturing. The research was conducted through multiple case studies involving eight original equipment manufacturers that are either initiating or engaging in remanufacturing. The results show that the incentives can be grouped into five categories: (1) business development, (2) access to cores, (3) environmental reasoning, (4) preparing for regulations, and (5) technological development. These categories are conceptualised based on the experiences or visions of the case companies and are related to their short- and long-term expectations of remanufacturing.
... While inter-organizational collaboration in the upstream with suppliers, competitors, customers, and other stakeholders such as universities for product development is well understood (Fichter, 2009;Melander, 2017), the development of inter-However, firms also have strategic reasons for engaging in reverse product and material flows. Reasons for engaging in voluntary product cycling include brand image, reducing cost, accompanying customer demands, and protecting after-markets (Toffel, 2004). Thus, value creation in reverse processes follow at least three leverages of cost reduction, additional revenue, and risk reduction (Schenkel et al., 2015). ...
... However, one of the major barriers for closing product loops is missing collaboration (Ghisellini et al., 2016;Tukker, 2015). Literature suggests that circular product and material flows increase interdependencies due to their life-cycle and industry-spanning nature and thus increase inter-organizational collaboration (Toffel, 2004;Brennan and Saccani, 2017). Thereby circular activities may increase transaction costs in the up-and downstream value chain due to an increased number and intensity of relationships (Masi et al., 2017) as well as through the respective coordination of information and material flow (Winkler, 2011). ...
Consumer goods industries are increasingly under pressure to better retain economic value and mitigate ecological impact in their downstream value chain. The circular economy (CE) proposes repair, reuse, refurbishing, and recycling as key service strategies for extending a product life cycle. But manufacturers and distributors usually have limited internal competencies in circular service development, making collaboration with specialized service providers in innovation ecosystems essential. Research on how such ecosystems can be developed, orchestrated, and used for experimenting with circular services is in its infancy. Against this background, this paper explores how a large German telecommunication operator orchestrated an ecosystem for experimentation with circular smartphone service offerings. We utilize a longitudinal and embedded case study design to analyze the ecosystem orchestration process. Our results are twofold. First, we present ecosystem development in three phases: from 1) limited compliance relationships, via 2) circular strategy-specific subsystems, to 3) circular system integration. Second, we show how distributed agency across various internal departments contributes to ecosystem orchestration. Overall, we contribute to the emerging literature on inter-organizational and cross-sector collaboration in circular ecosystems.
... All these properties of lead ceramics become their drawback as they evaporate PbO during calcinations and sintering which is harmful for human health and also causes trouble in the waste decomposition. The replacement of these hazardous materials by safe substances was focused by European Union (EU) in 2003 3 .Waste Electrical and Electronic Equipment (WEEE) and Restriction on the use of Hazardous Substances (RoHS) was adopted by European Parliament in 3,4 .United States, Norway, California, Turkey, and the many other countries established similar regulations like EU to stop the use of hazardous substances [5][6][7][8] . Asian countries like China, Japan and South Korea also regulate similar norms to avoid theextra usage of hazardous substances in electronic gadgets [9][10][11] . ...
... . But there is no formation of MPB for K 0.5 Na 0.5 NbO 3 . KNN ceramics have been chemically modified to obtain high quality materials with higher piezoelectric response and more established properties. ...
Piezoelectric ceramics are some of the most important class of functional materials which are used to produce sensors, actuators, motors, resonators, electromagnetic filters, etc. Among various piezoceramics, the perovskite family has grabbed significant attention, particularly in the fields of condensed matter physics. Precisely speaking, Lead Zirconate Titanate exhibits remarkable dielectric and piezoelectric properties, however, the toxic nature of lead is hazardous to both environment and human beings. Therefore, various researchers have shifted their focus towards lead-free piezoceramics. Sodium Potassium Niobate is the most intensively studied lead-free piezoelectric material possessing large piezoelectric coefficient and high Curie temperature. The objective of this paper is to provide an insight on the dielectric and piezoelectric properties of lead-free Sodium Potassium Niobate ceramics and their composites. The current state-of-art of this lead-free system with an emphasis on recent advances in its piezoelectricity suitable for wide range of applications are also been highlighted. This review provides an overview of the development of lead-free perovskite Sodium Potassium Niobate and its composites which may provide an impetus to various researchers working in the field of materials science.
... This process could be performed by the OEM or by other parties either independently of the OEM or on a contract ( Lund, 1984 ). Remanufacturing is often beneficial for companies as it could improve their brand image ( Toffel, 2004 ) and lower the use of new materials ( Toffel, 2004 ;Östlin et al., 2008 ;Kerr and Ryan, 2001 ), which can result in an improved economic situation ( Demirel and Gökçen, 2008 ;Fleischmann et al., 20 0 0 ). But remanufacturing could also be difficult to introduce and maintain. ...
... This process could be performed by the OEM or by other parties either independently of the OEM or on a contract ( Lund, 1984 ). Remanufacturing is often beneficial for companies as it could improve their brand image ( Toffel, 2004 ) and lower the use of new materials ( Toffel, 2004 ;Östlin et al., 2008 ;Kerr and Ryan, 2001 ), which can result in an improved economic situation ( Demirel and Gökçen, 2008 ;Fleischmann et al., 20 0 0 ). But remanufacturing could also be difficult to introduce and maintain. ...
As environmental issues attract more concern, shifting towards sustainable manufacturing that includes remanufacturing has become a strategic solution to enable a profitable business while improving environmental performance. The aim of this paper is to investigate the economic feasibility of remanufacturing at different supply chain locations for a robotic lawn mower manufacturer attempting to expand their business. Through a case study, five potential location categories were identified, of which two were deemed economically feasible: spare parts warehouse (OEM) and decentralized (dealers). The other three alternatives were deemed inferior in comparison, or only plausible, but identified as risky through a sensitivity analysis.
... Green procurement and collaboration with suppliers to obtain environmentally friendly and rare raw materials has an impact on achieving competitive advantage for companies. The studies presented previously confirmed that external GSCM has a positive relationship with competitive advantage (Alkhawaldah et al.,2022;Alzubi and Akkerman,2022;Hadid, 2019;Laari et al.,2018).Furthermore, investment recovery aided in achieving an environmental and economic competitive advantage by reducing product costs and achieving customer satisfaction and loyalty by selling non-working machines and excess materials to be recycled by other companies (Toffel, 2004). ...
... These are often uncertainties related to the availability and condition of cores (Kamper et al., 2019;Sundin and Dunbäck, 2013), legislative restrictions (Lindkvist Wei et al., 2015a), market acceptance (Guidat et al., 2015;Hazen et al., 2017), lack of internal communication , and lack of spare parts (Kurilova-Palisaitiene et al., 2018), thus setting high requirements for the initiation of remanufacturing operations. Once these challenges are overcome, remanufacturing can contribute to financial gains by, for example, finding new customer segments (Abbey et al., 2015b;Chun et al., 2023), enabling premium brands to compete in lowprice markets (Atasu et al., 2008a;Hazen et al., 2017), protecting aftermarkets (Jensen et al., 2019;Seitz and Peattie, 2004), and improving brand equity (Hazen et al., Toffel, 2004). These benefits are linked to the business drivers for remanufacturingprofit, environment, and policy -that underscore companies' interest in remanufacturing (Östlin et al., 2008a). ...
Remanufacturing is an industrial process in which a core – a used, discarded, or broken product – is transformed into a product with a like-new specification and condition. However, to this date, remanufacturing activities on the market are few compared to manufacturing. There are several types of remanufacturers; the least common type is the original equipment remanufacturer, an original equipment manufacturer that not only manufactures new products but also remanufactures cores of its own products. Remanufacturing is potentially becoming a more widely used industrial process for original equipment manufacturers, and increased remanufacturing activities can positively contribute to the environment. The contribution comes from a reduction of raw material and energy consumption compared to manufacturing. Therefore, remanufacturing has the potential to decouple environmental impact from economic growth, thus contributing to more sustainable societies. However, assessing the benefits of remanufacturing does not directly correlate to growth within the remanufacturing industry. To encapsulate the environmental, social, and economic benefits of remanufacturing, manufacturers need to be aware of how remanufacturing can be initiated and implemented in practice. Therefore, the objective of this dissertation is to develop support measures for original equipment manufacturers to initiate profitable remanufacturing.
This research takes a stand in case study and transdisciplinary research where the initiation of profitable remanufacturing is studied at two original equipment manufacturers. The research study developed knowledge of how remanufacturing could be incorporated into existing operations at original equipment manufacturers. In parallel, financial assessments based on cost-benefit analysis were built to measure how well the case companies could perform remanufacturing. For the case study research, seven remanufacturing scenarios were developed, ranging from centralised remanufacturing performed by the original equipment manufacturer to decentralised performed at multiple locations using a retail network. Which scenario is preferable depends on, for example, risk-consciousness, cooperation between actors, and volume targets. However, given ideal circumstances, remanufacturing in-house in a centralised scenario was shown to be the most beneficial for the investigated original equipment manufacturer since the fewer middle hands and economies of scale also potentially enable lower costs.
For the transdisciplinary research, the remanufacturing initiation was business model-centric, meaning that the remanufacturing system was a consequence of a decision for a specific business model. Here, a scenario-based analysis was developed to understand under which circumstances the business model with remanufacturing was more lucrative for the provider – the original equipment manufacturer – and less costly for the users – the customers. For this, a systematic assessment approach was developed consisting of three steps: (1) provide a cost overview for each business model, (2) create scenarios by modifying the cost drivers, and (3) combine scenarios to reach synergetic effects.
Based on the case study, two sets of four prerequisites for initiating remanufacturing were derived. These are divided into essential and supporting prerequisites and illustrated through a framework called the Remanufacturing Rocket. The essential prerequisites highlight fundamental requirements to perform remanufacturing. Should one of these four factors be missing, remanufacturing cannot be successfully initiated. The supporting prerequisites are valuable to enhance the effectiveness and efficiency of the process, such as through streamlined operations, organisational change, or information exchange. Hence, to reach the fullest potential of remanufacturing, both the essential and the supporting prerequisites are needed.
Furthermore, the area of financial assessments was explored in a systematic literature review to identify insights for developing such assessments tailored for individual original equipment manufacturers in initiating remanufacturing. For this, six perspectives for framing financial assessments are proposed. These cover the system boundaries for the assessments as well as the individual needs and visions of original equipment manufacturers. Additionally, a framework was developed to select financial assessment models for remanufacturing initiations based on ease of use and capability to handle complex datasets.
Conclusively, it is proposed to apply the prerequisites for initiating remanufacturing together with a financial assessment in an iterative manner to investigate the profitability for original equipment manufacturers to initiate remanufacturing. The essential prerequisites influence the first iteration of the financial assessment, which then contributes to refinements of how the essential prerequisites should be aligned in an economically preferable way. Once satisfactory, another iterative process could be initiated between the supporting prerequisites and the financial assessment. By using the proposed approach, the prospects of profitable remanufacturing could be thoroughly investigated before attempting to initiate a process in practice, thus reducing the number of resources spent in vain. Additionally, the iterative process was integrated into a 5-step Approach For Initiating Remanufacturing (5AFIR) to guide original equipment manufacturers towards initiating profitable remanufacturing.
... The drivers to initiate remanufacturing are broad and range from general factors such as economic, environmental, or policy-related [1] to more specific, including improving brand image [2], reaching new customer segments [3], and lowering the use of material and energy [4]. These drivers tend to benefit original equipment manufacturers (OEMs) that perform remanufacturing of their products. ...
The remanufacturing activities on the market are increasing as more companies follow the trend of applying resource-efficient solutions. This trend is also seen among original equipment manufacturers (OEMs) when closing their resource flows. However, as there are few descriptions of how OEMs initiate remanufacturing in practice, there is also little guidance for them to follow. Therefore, to support OEMs in initiating remanufacturing, the aim of this paper is to describe areas investigated during a remanufacturing initiation. This is conducted by studying an OEM of robotic lawn mowers without prior remanufacturing experience and then describing the undertaken journey from primarily producing new products to also offering remanufactured products. The study describes four areas of investigation at the OEM: (1) Select products for remanufacturing, (2) develop the remanufacturing process, (3) determine the quality of remanufactured products, and (4) perform sales activities. These areas are elaborated on to show the considerations of the OEM during the initiation. Based on the findings, the importance of viewing the remanufacturing initiation phases as a system of parallel activities rather than a linear chain is emphasised for future development of guiding remanufacturing initiation frameworks.
... This would reduce the number of players in the market after a state of excess supply. As OEMs who operate as remanufacturers often gain a dominating position in these industries [88], the scepticism of independent remanufacturers does not appear unfounded. From another perspective, cooperation between independent refurbishers and manufacturers might be possible in different forms. ...
Remanufacturing and refurbishment of electronic devices can be profitable business strategies for companies and a way to counteract the rapidly growing waste stream of electronic scrap. The industrial remanufacturing process provides a used device with a second life and a quality similar to a new device. However, companies and organizations that offer such devices still encounter difficulties. While earlier research has already partly covered the field of remanufacturing, it still lacks real-word examples and practical solutions to existing challenges. The identification and discussion of solutions for possible obstacles are thus a focus of this work. Furthermore, emerging trends in this industry as well as digitalisation and online trade with remanufactured devices are discussed. Attention is also paid to future developments in the field of remanufacturing, specifically to topics that could dominate this industry. The method applied to collect indicators for these various focal points was a Delphi study, which was conducted with experts in the field of remanufacturing. This study included a total of three survey rounds. It is noteworthy that the experts emphasized the importance of networking and various forms of cooperation in the reuse sector. Furthermore, the significance of remanufacturers’ transparency, especially concerning the remanufacturing process as well as the condition and assessment of the offered devices, was emphasized.
... Another proposal to create LIB circular economies is vertical integration of the recycling process by a single stakeholder. 47 Vertical integration is an economic strategy where a single entity takes over a stage in the production or distribution of the product it is handling. 48 It is often driven by the need to maximize profit margins. ...
The demand for lithium-ion batteries (LIBs) has been increasing exponentially due to their applications in portable electronics and electric vehicles. Consequently, the raw materials required to manufacture LIBs, including geopolitically scarce metals such as lithium and cobalt, have also witnessed a surge in demand. Moreover, the accumulation of spent LIB also raises safety and waste management concerns. Because reducing fossil fuel dependency is an integral part of energy transitions, this trend is expected to continue, which introduces numerous challenges. The primary challenge is the potential for the demand of raw materials required in LIB production to outpace supply along with the environmental, technical, and ethical constraints associated with the primary extraction of raw materials like lithium. This work examines the importance of LIBs in upcoming energy transitions and the environmental impact of its burgeoning demand. A summary of the current trends and techniques employed in LIB recycling and regeneration as well as the limitations of these methods are also explored. The review provides a comprehensive overview on LIB recycling in keeping with the principles of a circular economy by uniting the technical, environmental, economic, and political aspects of spent battery management.
... Dimofte (2010) contented that mindfulness is the opposite of 'auto processing,' and most of the routine purchase decisions of consumers are the result of automatic processing. Mindful consumption is the application of mindfulness (Milne et al. 2020;Toffel 2004) argued that mindfulness in consumption is also an additional responsi- (2009) To examine the role of mindfulness in consumer behaviour and service marketing in Australia and Malaysia. ...
Purpose: During the last decade, studies on the theoretical models of mindful marketing and consumption have gained the attention of researchers due to the increased awareness concerning environmentalism among companies and consumers. Mindful marketing is about a balanced approach sans consumerism, and mindful consumption is about making informed choices for the well-being of society, businesses, and individuals. The purpose of the paper is to critically review the previous studies on mindfulness in marketing and consumption, identify the research gaps, provide directions for future research, and set a research agenda. Methodology: Framework-based systematic literature review is used for the review. The framework used is the TCCM (Theories, Contexts, Characteristics, and Methodology) (Paul J. et al. 2019). The study highlights the findings from prior studies to understand the theory development and compares the characteristics and contexts based on the framework used. The articles used in the study are from the period 2002–2022 from journals with an impact factor of more than 1.0 and indexed in Scopus and ABDC. The period of the last 20 years was chosen because research on mindfulness in marketing and consumption from the business perspective gained momentum during the last two decades. Findings: The study suggests that studies on mindful marketing and consumption focussed more on the development of sector-specific models. A universally accepted definition and conceptual understanding of mindful marketing and consumption are yet to be researched in future studies. The previous studies did not cover conceptual aspects of mindful marketing and consumption. There is an excellent scope for theoretical extension in this area as it covers almost three subjects: sustainability, marketing, and consumer behavior. Contribution: There is no review in the previous studies that have comprehensively explored the theoretical development, contexts, characteristics, and methodology based on all the articles published in the last two decades. The review seeks to delve deeper into the area of mindful marketing and consumption, which would help in the identification of research gaps and the development of the research agenda.
... Additionally, number of organizations have made an attempt to increase the investment recovery value by integrating the forward and backward supply chain (Toffel, 2004). In recent years, Nissan Motor Corporation in Japan has partnered with number of SC members to fasten the recovery of EOL vehicles (McKeown et al., 2014). ...
The study purpose is to investigate the mediating effect of collaborative capability (COC) in the relationship of supply chain management practices (SCMP) and organizational performance (OP) of food and beverages industry in Thailand. The data had collected from the 300 senior managers of food and beverages of Thailand. The Structural Equation Modeling (SEM) had shown that eco design (ECD) and investment recovery (IR) have positive and significant relationship with the environmental and financial performance. On the other hand, the indirect effect relationship had shown that COC is significantly and positive mediating in the association of the ECD and both organizational performance indicators. While COC had not significant mediating variable within the relationship of IR and both of OP indicators. These findings have shown that SCMP practices are important indicators for increasing their performance. Therefore, this study added empirical literature in the extant literature that could become a foundation for new research.
... Certain countries in Europe and Asia have adopted takeback programs making manufacturers responsible for their products and/or packaging at the end-of-use stage. This is one upstream approach to environmentalism that encourages manufacturers to think about the end-of-use stage as a cost of doing business (Toffel, 2004), and it does require government intervention to have any large-scale impact. For example, we spoke with a representative from one bike company collecting back their used frames; however, as a lone actor there is no infrastructure to support the take-back process and they are left with a warehouse full of bike frames with few renewal options. ...
What happens to our sporting goods when we are done with them? Even though Sustainable Development Goal 12 focuses on responsible consumption and production, very few in the sports industry (and academy) have asked this question. With environmental degradation now a daily concern around the world, we can no longer produce and consume sporting goods without considering the end-of-use stage for these products. This study focuses on the bike and its role in global waste accumulation through various forms of planned obsolescence. Through interviews with experts in and around the bike industry and waste management, we provide insight into the environmental barriers that are structural and specific to the bike industry. We then advocate for extended producer responsibility and the circular economy as an imperfect but radical alternative future.
... Caterpillar takes a full life-cycle approach to deliver consumer value by designing and manufacturing products with multiple life cycles that can be remanufactured at the end of their useful life. Companies such as Apple, Lenovo, and Huawei use recycled components instead of new raw materials in their production, mainly because it can save 30-50% in costs [13]. It is not only academics and industries that have undertaken research on CLSCs; governments have introduced various policies to encourage the development of CLSCs. ...
A closed-loop supply chain (CLSC) is the process of adding a reverse supply chain to the traditional forward supply chain. It has a positive effect on reducing environmental pollution, and therefore many governments have introduced relevant policies to encourage enterprises to develop CLSCs. Among them, the reward–penalty policy (RPP) for the recovery rate of waste electrical and electronic equipment (WEEE) is considered better. At the corporate level, the development of CLSCs can enhance the social responsibility awareness of the enterprise and effectively enhance the corporate image. Therefore, in order to study the decision making and recycling channel selection of CLSCs that consider corporate social responsibility (CSR) under the government’s RPP, this paper constructs a two-stage CLSC, including a manufacturer, a retailer, a third-party recycler, and the government. By adopting the Stackelberg game method, we determine the optimal results of the three models and draw a series of conclusions: (1) when the manufacturer is responsible for recycling WEEE, the profit is the largest, and it shows an increasing trend as the government’s reward–penalty coefficient increases; (2) the manufacturer recycling model enables the manufacturer to obtain the maximum CSR investment level, followed by the third-party recycler recycling model, and the smallest is the retailer recycling model; and (3) the government tends to build third-party recycling agencies, which is conducive to improving the level of contribution to GDP. The conclusion of this paper has certain management inspirations for the decision making of the enterprise and the formulation of government policies.
... It is important to note that the new product made from old components may not be the same as the original product, a process defined in some studies as "cannibalization" [22]. According to Marcel's definition of the concepts related to product design for recycling research, the term "recycling" refers to material levelbased recycling strategies, primarily the process of collecting, processing, and using waste materials for the production of new materials or products and is, therefore, different from the broader concept of recovery [31]. For the sake of distinction, this paper referred to material level-based recycling strategies as material recovery. ...
The way consumers dispose of end-of-life products (EoL products) and their acceptance of recycled products largely determine the final direction of resource flow. Therefore, clarifying consumers’ preferences for end-of-life scenarios (EoL scenarios) and recycled products and guiding consumers to participate in a circular economy is of great significance for enterprises and society to transition to a circular economy. However, as far as the existing research is concerned, there is a lack of comparison and summary of consumer preferences based on multi-category EoL products and recycled products. Therefore, this study took four categories of common consumer durables as the object to study consumers’ preferences for EoL solutions and recycled products and, based on the survey results, user segmentation in the market and consumer type segmentation in the CE were performed. The research results show that users generally support product reuse, and they generally have the highest acceptance of second-hand products and the lowest acceptance of refurbished products; meanwhile, consumers’ acceptance of recycled products varies by product type; according to the differences in preferences, consumers are divided into groups with different consumption characteristics; based on the differences in support for product recycling and recycled products, consumers are divided into the high perception group, the general perception group, and the low perception group in CE. The results of this study can provide reference for related research on sustainable waste management and sustainable consumption.
... The type of remanufacturer affects how information is transferred between the remanufacturer, the OEM, and the sales actors (Kurilova-Palisaitiene et al., 2015), as well as how knowledge is shared between the actors and how collaborations are arranged (Lund, 1984;Sundin et al., 2000). Each of these faces various challenges, but once conquered, remanufacturing can contribute to, for example, finding new customer segments (Abbey et al., 2015b), allowing premium brands to compete in low-price markets (Atasu et al., 2008a), enhancing communication channels between users and producers (Lund, 1984), protecting aftermarkets (Seitz and Peattie, 2004), and improving brand equity (Toffel, 2004). By considering any or all of these as linked to business drivers for remanufacturing -profit, environment, and policyremanufacturing can be of interest for companies (Östlin et al., 2008a). ...
Remanufacturing is an industrial process in which a core – a used, discarded, or broken product – is transformed into a product whose specification and condition are new-like. However, to this date, remanufacturing activities on the market are few in comparison to manufacturing. There are several types of remanufacturers; the least common type is the original equipment remanufacturer, an original equipment manufacturer that not only manufactures new products but also remanufactures cores of its own products. The potential for remanufacturing to become a more widely used industrial process for original equipment manufacturers is therefore high. Increased remanufacturing activities can positively contribute to the environment by transforming cores into a new-like condition instead of manufacturing new ones. The contribution comes from a reduction of raw material and energy consumption compared to manufacturing. Therefore, remanufacturing has the potential to decouple environmental impact from economic growth, thus contributing to more sustainable societies. However, assessing the benefits of remanufacturing does not directly correlate to growth within the remanufacturing industry. To encapsulate the environmental, social, and economic benefits of remanufacturing, manufacturers need to be aware of how remanufacturing can be initiated and implemented in practice with positive economic effects. The aim of this licentiate thesis, therefore is, to explore how original equipment manufacturers can initiate profitable remanufacturing.
This research takes a stand in a single case study where the prospect of profitable remanufacturing is studied at an original equipment manufacturer. The applied case study developed knowledge of how remanufacturing could be incorporated into existing operations at an original equipment manufacturer. In parallel, analytical economic assessment models based on cost-benefit analysis were built to measure how well the case company could perform remanufacturing. There were seven primary remanufacturing scenarios developed, ranging from centralised remanufacturing performed by the original equipment manufacturer to decentralised performed at multiple locations using a retail network. Which scenario is preferable depends on, for example, risk-consciousness, cooperation between actors, and volume targets. However, given ideal circumstances, remanufacturing in-house in a centralised scenario was the most beneficial for the original equipment manufacturer since the fewer middle hands and economies of scale also enable lower costs.
The modelled remanufacturing scenarios were based on a set of eight prerequisite factors for original equipment manufacturer remanufacturing that were derived during this research. These factors are divided into essential and supporting prerequisite factors and are illustrated through a framework called the remanufacturing rocket. The essential factors highlight fundamental requirements to perform remanufacturing. Should one of the four factors be missing, remanufacturing cannot be successfully initiated. The supporting factors can be neglected to a larger extent but are valuable to enhance the effectiveness and efficiency of the process, such as by streamlined operations, organisational change, or information exchange. Hence, to reach the fullest potential of remanufacturing, both the essential and the supporting factors are needed.
Conclusively, as an answer to the thesis aim, it is proposed to apply the prerequisite factors together with an economic assessment in an iterative manner to investigate the profitability of initiating remanufacturing at original equipment manufacturers. The essential prerequisite factors influence the first iteration of the economic assessment, which then contributes to refinements of how the essential factors should be aligned in an economically preferable way. Once satisfactory, another iterative process could be initiated between the supporting prerequisite factors and the economic assessment. By using the proposed approach, the prospects of profitable remanufacturing could be thoroughly investigated before attempting to initiate a process in practice, thus reducing the number of resources spent in vain. Additionally, the iterative process was integrated into a five-step approach for initiating remanufacturing (5AFIR) to guide original equipment manufacturers towards initiating profitable remanufacturing. Through applying this approach, it was shown that the case company could initiate profitable remanufacturing.
... All entities in supply chains are concerned about product return handling, which require producers to deal with the strategic return flow process such as recycling, reuse, refurbishing, remanufacturing, or remarketing [1,2]. The implication of product return management is imperative for developing a sustainable product life cycle structure in the circular economy. ...
Reverse distribution operations have become significant to the manufacturers in supporting the firms to achieve the circularity of products in the reverse flow chains. There are four main components of the reverse distribution chains; inbound and outbound transportation, collection of returns, centralised returns centres, and recovery process. Transport is essential by reducing the lead time and transportation cost of the used and the recovered products. Therefore, it is pertinent that the manufacturers continue endeavouring for the sustainable transportation process in each of the components to ensure the success of the reverse distribution chains.
... Risk and uncertainty related to disruption of material flow and the transportation lag decrease, heading toward creating a lean SC system.E3. Expanding the reverse logistics structure(Agarwal et al., 2021b;de Oliveira et al., 2019;Ripanti and Tjahjono, 2019;Toffel, 2004;Werning and Spinler, 2020) -The systematic procurement of waste or end-of-life materials creates a robust reverse SC structure with an engagement of firm return policy, transparent monitoring system and buyback incentives. Such a process demands the customers' participation in the chain and considers them as vendors for obtaining waste/used products. ...
Purpose
The catastrophic state of the COVID-19 pandemic outbreak has seized off all the operations along with the globe. It has not only distressed the socio-economic structure of the world but also mounted enormous pressure on the governmental bodies to save the lives of the people. Despite this, severe impacts of the same have been observed on the small and medium manufacturing enterprises (SMME) practices, resulting in the economic downturn. The purpose of this study is to facilitate the SMME’s with circular economy (CE) practices to overcome the negative impacts of the COVID-19 outbreak on their supply chain (SC) operations.
Design/methodology/approach
The presented work identified seven critical impacts as criteria of the novel COVID-19 pandemic on the Indian SMME and seeks to identify the relief measures in the CE paradigm by identifying 13 prominent enablers to CE as alternatives. Experts’ opinions have been engaged to detect CE enablers’ proficiency to overpower the pandemic impact through a questionnaire-based survey. The obtained data have been clustered and analyzed through a hybrid approach of entropy weight method and grey relational analysis to find an organized ranking of the enablers.
Findings
Current work spotlights the SMME’s losses due to SC disruptions and declined consumption patterns. The waste augmentation during the pandemic era has also been grouped in this study, primarily associating with the SC’s waste generation. The result of the performed analysis shows that the CE enabler “waste reduction and its transformation into a resource (E1)” have achieved the highest rank among all the considered enablers, governing a higher demand toward reusing waste for better handling the post COVID era state of affairs.
Originality/value
The presented study aimed to suppress the pandemic impact and generate anticipation of the CE concept, which might help the managers and policymakers identify its urgent need to achieve a stable and resilient SC system in a post COVID period. Presented work is peculiar, aiming to accelerate the CE adaption with green material usage in the industrial sector to suppress the present miserable condition and to achieve industrial and social sustainability for a better-foreseen future.
... All entities in supply chains are concerned about product return handling, which require producers to deal with the strategic return flow process such as recycling, reuse, refurbishing, remanufacturing, or remarketing [1,2]. The implication of product return management is imperative for developing a sustainable product life cycle structure in the circular economy. ...
Reverse distribution operations have become significant to the manufacturers in supporting the firms to achieve the circularity of products in the reverse flow chains. There are four main components of the reverse distribution chains; inbound and outbound transportation, collection of returns, centralised returns centres, and recovery process. Transport is essential by reducing the lead time and transportation cost of the used and the recovered products. Therefore, it is pertinent that the manufacturers continue endeavouring for the sustainable transportation process in each of the components to ensure the success of the reverse distribution chains.
... ,Lieder et al. (2018),Toffel (2004),Tyagi et al. (2014a, b),Weelden et al. (2016) C4 Enhanced product quality and durability CSCM intends to maximize the retention of product in the value chain which empowers the product durability and provide assistance in enhancing the product qualityAbbey et al. (2015), Akanbi et al. (2019), Hollander et al. (2017), Kirchherr et al. (2017), Tajbakhsh and Hassini (2015), Toffel (2004) C5 Emission level One of the goals of sustainability fulfills by CE strategies is reducing the emission level for the benefit of the planet. The emission in the form of greenhouse gases which are the chief source of global warming CPCB (2020), Geissdoerfer et al. (2018), Genovese et al. (2017), Kozlowski et al. (2015), Nasir et al. ...
Purpose
Adopting the circular economy (CE) notion in the supply chain perspective is necessary for the sustainability viewpoint. However, such practices are deficient, especially in developing countries like India, because of several obstacles. The purpose of this study was to create an approach for circular supply chain management (CSCM) adaption in Indian rubber industries by identifying and evaluating its associated obstacles.
Design/methodology/approach
A hybrid approach of analytic hierarchy process (AHP) and the grey-based ELECTRE method had been employed in this research to obtain the mutual rankings of the identified obstacles based on their impressions on the CSCM prosperity criteria through a case study and involving diverse expert's opinions.
Findings
Presented study's findings illustrate that “Lack of consumer knowledge and consciousness towards environmental sustainability” was found to be the top-ranked obstacle followed by “Unwillingness towards supply chain re-structuring”.
Research limitations/implications
The obstacles' prioritized rankings could help leaders to create sequential strategies for adapting a resilient CSCM structure by systematically eliminating these obstacles. Moreover, the pinpointed critical obstacles could be investigated further in separate studies and generate future studies' scope.
Originality/value
During the extensive literature survey, it had been found that the CSCM practices are in the fledgling stage in the developing country's context. Moreover, studies related to CSCM adaption in rubber-based manufacturing industries were much lacking. Presented work is peculiar, aiming to accelerate the CSCM adaption in the industrial rubber sector in developing countries like India.
... For instance, the collaborative re-design of the packaging in a reverse logistics perspective can bring mutual benefits to both manufacturer and supplier (Chan, 2007). Suppliers can participate in re-designing the packaging to reduce material (Simpson, 2010) and recover products or parts, which customers can buy as service parts (Toffel, 2004). ...
Despite the popularity of reverse logistics in literature, the effect of different collaboration types on the likelihood to introduce reverse logistics innovation has been under-investigated. Hence, this article explores the impact of domestic collaboration with competitors, customers, suppliers, research institutions, and the breadth of collaboration on a firm's reverse logistics innovation. Four hypotheses - grounded on institutional, resource dependence, and absorptive capacity theories – are tested through generalized structural equation modelling analyses on a longitudinal sample of German firms. The results show a positive impact of vertical collaboration, horizontal collaboration, and collaboration with research institutions on the likelihood to introduce reverse logistics innovation. In contrast, collaboration breadth has a negative impact on reverse logistics, an unexpected and surprising result for the innovation management literature. The article offers recommendations to practitioners as to which partners are more likely to increase the odds of introducing reverse logistics innovation and demonstrates that – to such an aim - firms should select a limited number of partners, identifying the ones that suit their needs the most.
... Remanufacturing can increase a company's competitiveness in several ways, such as allowing premium brands to deliver a high-quality product at a lower price [8] or attracting customers that value environmentally friendly products [9,10]. Remanufacturing has not only proven to provide economic benefits to practitioners compared to new product manufacturing [11][12][13][14] but also environmental benefits [4,[15][16][17][18]. ...
An integration of remanufacturing into an original equipment manufacturer’s (OEM) value chain can enhance circularity. In order to realize a transition towards circularity, it must be economically beneficial. This paper aims to compare and economically evaluate several remanufacturing scenarios with varied retailer involvement, to identify how an electrical and electronic equipment (EEE) manufacturer can perform remanufacturing profitably. To meet the aim of this paper, data was gathered through more than 50 semi-structured and unstructured interviews, including workshops with a robotic lawn mower manufacturer and eight of its retailers in Sweden, and through a literature review in the fields of remanufacturing, acquisition of cores (used products), and sales of remanufactured products. The scenarios consist of a decentralized, with minor or no involvement of an OEM, and six centralized, where an OEM manages remanufacturing. Here, looking at a case of the centralized scenario, the remanufacturing process is performed at the OEM manufacturing plant in a European low-wage country, while cores are acquired in Sweden. This research concludes that the OEM’s economic benefits are greater in remanufacturing scenarios with low involvement of retailers. However, succeeding with acquisition and sales without retailers requires establishing new retail channels, which also leads to uncertainties.
... The McKinsey Center for Business and Environment particularly showed that developing circular economy may reduce the cost of primal resources in Europe by 25% in the next 10 years. In addition, [Toffel, 2004] highlighted the possibilities of new economic benefits arising from reusing materials or components, [de Brito and Dekker, 2003] and [Duman et al., 2016] pointed out due to the rising awareness of the consumers regarding environmental concerns, reprocessing EOL products has a positive effect on the public image of industries, which is indirectly another source of economic benefits. The study of [Perey et al., 2018] illustrates the positive economic effects of RL by reviewing several cases of organisations which changed their business models to integrate waste as a resource and took advantage of this change. ...
Reverse supply chains (RSCs) have been increasingly implemented in recent years to manage the growing flow of solid waste generated by end-of-life (EOL) products and to minimise their environmental impact. Furthermore, recent research has shown that the implementation of RSCs benefits job creation, enables savings in raw materials, and creates income from the sales of re-manufactured products. However, designing RSCs requires dealing with many sources of uncertaintydue to the reverse flow of EOL products. To model these uncertainties, we consider a set of equally possible scenarios. In previous models for scenario sets, the decision often has been influenced by negative scenarios while neglecting opportunities. We propose a new risk/opportunity approach based on the R ∗ criterion to give more weight to positive scenarios in the decision-making process. This criterion is used in order to distinguish zones of risk and opportunity and guide the decision-making process accordingly to the existing zones. We develop a lexicographic approach for the consideration of existing scenarios, and propose two methods to compute the optimal solution for lexicographic R ∗ ( L e x i R ∗ ) criterion: one in the form of an algorithm and another in the form of a mixed-integer program (MIP). The performance of the developed approaches is demonstrated in a case study for a reverse facility location problem.
... ,Lieder et al. (2018),Toffel (2004),Tyagi et al. (2014a, b),Weelden et al. (2016) C4 Enhanced product quality and durability CSCM intends to maximize the retention of product in the value chain which empowers the product durability and provide assistance in enhancing the product qualityAbbey et al. (2015), Akanbi et al. (2019), Hollander et al. (2017), Kirchherr et al. (2017), Tajbakhsh and Hassini (2015), Toffel (2004) C5 Emission level One of the goals of sustainability fulfills by CE strategies is reducing the emission level for the benefit of the planet. The emission in the form of greenhouse gases which are the chief source of global warming CPCB (2020), Geissdoerfer et al. (2018), Genovese et al. (2017), Kozlowski et al. (2015), Nasir et al. ...
Green supply chain management (GSCM) is one of the recent revolutions to improve supply chain management services. Due to the presence of many obstacles, green business practices are not easy to adopt and implement. Therefore, industries must implement strategies to reduce the impact of their products and services on the environment. Most SMEs (small and medium enterprises) that play a crucial role in the Indian economy face great challenges in the implementation of green initiatives. The purpose of this research is to reduce the effect of the barriers that prevent the Indian rubber industry from implementing the GSCM. The aim of this research is to reduce the effect of barriers preventing the adoption of GSCM by Indian RUBBER industries situated in north India. For that reason, contextual relationships among the identified barriers were identified using Interpretive Structural Modeling (ISM) methodology. Literature survey of various articles and expert suggestions from industries and academia has been done and twenty-five most prominent barriers have been found out. Data was gathered through a survey based on the questionnaire, and the results were gathered. Data collected has been analyzed using ISM. However, a structural model barrier design for implementing the GSCM has also been proposed for the case of Indian rubber industries. A strong understanding of these barriers allows businesses to prioritize more efficiently and effectively managing their resources. In addition, strategies for overcoming barriers in the adoption of GSCM are proposed.
... The high quality in realization of the reverse logistics promotes long term relationships, both regarding the preferences of the company-buyer, as well as the satisfaction of the final clients. On that basis, the company can achieve a significant competitive advantage, which it would not possess, if there was no adequate interpretation and the valued set of reverse logistics activities (Toffel, 2004). ...
Reverse logistics management has been the subject of scientific and practical
attention for a few decades now. An additional interest for this topic has arisen during
the last decade, due to a growing number of business entities it affects and the insight
into the strategic potential of adequately managing the reverse logistics flows. Up to
now, practical research and empirical confirmation regarding reverse logistics
management has been scarce, and the question of defining elements, i.e. factors which
determine the reverse logistics flows has remained without a complete answer. In time,
various authors have tried to solve this question by setting certain guidelines and
models which comprehensively show factors considered to be of key importance for the
realization of the reverse logistics flows. The subject of this paper is to analyze in depth
such existing models. After defining the very term of reverse logistics, the carried out
model analysis respects the dynamic time component, first focusing on the theoretical
model in this area- the Carter-Ellram model, and later on to the one empirically
confirmed- the contemporary reverse logistics model. The aim of this paper is threefold.
First, to explain the evolution of the meaning of reverse logistics. Second, to revise the
two approaches which most comprehensively define the set of factors considered to be
of most importance for the reverse logistics management. Thirdly, it is necessary to
compare the factors identified within the theoretical model, with the ones generated
empirically, in order to see the similarities and certain differences among them.
This research presents a conceptual framework to analyze the remanufacturing strategy. Three configuration strategies are explained and explored, namely Hybrid Manufacturing and Remanufacturing System (HMRS), Manufacturing/Remanufacturing (M/R) and Remanufacturer to the Manufacturer (R2M). Our research focuses on the cost and pricing decisions that affect the manufacturing firm to opt for the best-suited configuration. The competitive advantage is gained by manufacturing firms adopting remanufacturing or hybrid manufacturing and remanufacturing system. This conceptual framework will help manufacturing firms adopt the best-suited configuration and provide a decision-making framework for the variables within control and collaborative factors in remanufacturing.
Purpose
This study aims to examine and understand the impact of reverse logistics adoption on firms' digitalization and collaboration activities. Specifically, leveraging the knowledge-based view, this study examines how adopting sustainable logistic practices (reverse logistics) prepares firms to embrace digitalization and encourages them to collaborate with other organizations.
Design/methodology/approach
The study used longitudinal survey data from two waves (2017 and 2019) from the Mannheim Centre for European Economic Research. The authors used the negative binomial regression analyses to test the impact of reverse logistics adoption on the digitalization and inter-organizational collaboration dependent count variables.
Findings
The study's findings highlight the usefulness of reverse logistics in enabling digitalization and inter-organizational collaboration. The results show that the firms investing in sustainable supply chains will be better positioned to nurture digitalization and inter-organizational collaboration.
Practical implications
For resource-bound managers, this study provides an important insight into prioritizing activities by highlighting how reverse logistics can facilitate digitalization and collaboration. The study demonstrates that the knowledge generated by reverse logistics adoption can be an essential pillar and enabler toward achieving firms' digitalization and collaboration goals.
Originality/value
The study is among the first to examine the effect of reverse logistics adoption on firm activities that are not strictly associated with the circular economy (digitalization and collaboration). Utilizing the knowledge-based view, this study reports on the additional benefits of reverse logistics implementation previously not discussed in the literature.
Remanufacturing is widely recognized as beneficial to the environment and a circular economy. However, remanufacturing is more complex than traditional manufacturing due to the effects of government policy, uncertainty of consumer preferences, competition and cooperation among firms, and so on. These factors motivate academics to optimize remanufacturing outcomes, especially for product pricing and production. This study reviews the published literature on pricing and production strategies in remanufacturing from four perspectives of supply chain, namely, government policy, consumer characteristics, relationships among firms, and supply chain structures. Review results can benefit scholars/practitioners in the future by highlighting the challenges and opportunities in remanufacturing strategies.
تهدف الدراسة الحالية الى استكشاف طبيعة علاقة الارتباط والاثر بين ابعاد المرونة الاستراتيجية والتصنيع المستدام في شركتي البيبسي والكولا في اربيل/العراق، ويتكون الافراد المبحوثين من ) 33 ( فرد من القيادات الادارية في الشركتين المبحوثتين واعتمدت الدراسة على تطوير استبانة تألفت من ) 30 ( فقرة لدراسة ابعاد المرونة الاستراتيجية وعلاقة ارتباطها وأثرها في تحقيق التصنيع المستدام، وتم استخدام الاساليب الاحصائية لمعالجة البيانات وتحليلها والوصول الى نتائجها. ومن هذه النتائج وجود علاقة ارتباط وأثر بين المرونة الاستراتيجية والتصنيع المستدام فضلا عن علاقة الارتباط والتأثير بين كل بعد من ابعاد المرونة الاستراتيجية والتصنيع المستدام، وقدم البحث بعض المقترحات من بينها نظراً لوجود علاقات ارتباط وتأثير معنوية بين متغيرات الدراسة، وانعكاس ذلك على طبيعة عمل الشركتين قيد الدراسة، توصي الدراسة بضرورة ان تولي إدارة الشركتين اهتماما كبيراً لهذه المتغيرات في ضوء دراسة ابعادها وتحليلها باستمرار.
The aim of the present research is to assess the implementation level linked to the CE in Europe. This study elaborates an ample overview of the literature linked to most debates topics of the circular economy (CE) and describes a state of the art of phenomenon, highlighting the most widespread cross-sectoral theoretical approaches (CE key concepts) and some strategic measurement elements for the evaluation of the transition from the Linear Economy to the CE. Moreover, the paper focused on a performance evaluation through a quantitative analysis based on strategic measurement elements that permitted the investigation in detail of the sources of the effectiveness of the CE policies among the 28 EU Member States. The comparison in terms of performance could be considered strategic for designing the achievement of EU targets in terms of CE effectiveness. In fact, showing different countries' profiles the study allows defining an international scenario of the transition towards the CE at the international level.KeywordsCircular economyPerformance evaluationEuropeEnvironmental sustainabilityWaste management
Purpose
The execution of product recovery strategies and the definition of an adequate system to manage its performance are crucial to move toward the employment of a successful circular economy (CE) concept. Defining strategies for the efficient management of product recovery requires product data that is difficult to obtain, making it harder to handle. However, efficient product recovery management can play a key role in shifting companies from a linear economy model to a more sustainable CE model, providing economic benefits and increasing customer satisfaction by recovering and adding value to the discarded product. Therefore, this study aims to provide better models to support decision-making and to evaluate product recovery performance.
Design/methodology/approach
The present study highlights a comprehensive two-stage decision approach to identify and examine the relevant key performance indicators (KPIs) for performance improvement of an information facilitated product recovery system (IFPRS) in a CE context. In the first phase, a structural equation modeling (SEM) methodology is adopted to categorize the KPIs by employing exploratory factor analysis and measurement of the model fit is obtained using the confirmatory factor analysis. Further, in the second phase, the KPIs are ranked and prioritized on the basis of expert’s recommendations adopting fuzzy-technique for order of preference by similarity to ideal solution (FTOPSIS).
Findings
Empirical investigation is conducted by compiling data from an association of six decision-makers (DMs) and two DMs from a respective prospect. The results highlight that “Technology Capacity” is ranked as the highest and is the most prominent KPI for successful employment of IFPRS practices. The results of the study would benefit policy makers and company directors in the selection of KPIs based on their importance in a context of high competition and greater pressure to adopt sustainable practices in the management of their companies.
Originality/value
As far as the authors know, no study has been performed till date to identify and construct a structural KPIs model for IFPRS performance improvement in the context of CE. The paper, therefore, proposes a two-phase SEM-TOPSIS technique to measure the impact of KPIs which is a new integration in the existing literature. The results of the study would benefit policy makers and company directors in the selection of KPIs based on their importance in a context of high competition and greater pressure to adopt sustainable practices in managing their organizations.
This paper investigates the optimal strategies for an economic constrained closed-loop supply chain network. Manufacturers are classified into two categories namely low-emission manufacturers and high-emission manufacturers, and are subject to two greenhouse gas (GHG) emission control policies. Low-emission manufacturers are equipped with green production technologies to achieve ecological goals. All manufacturers are responsible in recycling and remanufacturing processes. New products and remanufactured products are homogeneous, and have the same sales price in the demand markets. Based on the variational inequality (VI) theory, we obtain the control equilibrium conditions of the non-cooperative game theory model for each firm. We further solve the model with the modified projection algorithm, and statically analyze and compare the influence of relevant parameters such as carbon quota, consumers’ low carbon preference and recovery rate on the network state through numerical examples. The results show that the GHG emission constraint may stimulate manufacturers to increase green technology investment level. Moreover, the introduction of reverse channel will promote resource recycling, but impair manufacturers’ profits. The promotion of consumer's environmental protection awareness has positive influence on the operation of supply chain network. In general, there is a conflict between economic goals and ecological ones. However, the developed model proves that economic goals and ecological ones can be realized consistently under certain conditions.
The environmental effects of supply chain operations are under the significant influence of Green Supply Chain Management (GSCM), with a potential enhancement of organizational sustainability performance. Even though previous studies have pointed to the contribution of integration of various activities associated with GSCM, no investigations have been carried out for the possible interdependencies of these activities and their application effects. Consequently, this paper aims at investigating the associations of GSCM methods and performance of manufacturing firms using the Natural Resource-Based View (NRBV) as well as Institutional Theory. The collected data from manufacturing firms were analyzed using the partial least squares technique. Accordingly, mimetic, normative, and coercive pressures were found to affect GSCM positively and significantly. Moreover, the GSCM and the firms’ environmental, operational and economic performances were found to be positively and significantly associated. In addition, according to the moderation analysis, collaborative capabilities had significant moderating effects on the association of green chain management and environmental as well as economic performance. However, collaborative capabilities could not moderate the association of GSCM and operational performance. Managers, supply chain specialists and also policy makers would benefit from the findings of the present study along with the inspirations resulting from the contribution of specific drivers in implementing GSCM methods, while application of the mentioned methods could be effective in achieving the desired performance levels. Furthermore, industrial sectors are provided with managerial and theoretical insights by the results obtained in the present paper to concentrate on environmental awareness through the adoption of GSCM methods.
In the rise of global emphasis on circular economy, the automotive firms in an emerging economy such as India in this context are bracing themselves for circular supply chain to recover the expended resources after formalization of End-of-life vehicle (ELV) norms, but these firms lack the knowledge about how to transform from Product-Service System (PSS) business model to circular business model. The extant literature doesn't mention clearly as to what drivers and sub-drivers are needed for adoption of circular principles in PSS business model. This paper aims to propose a multi-theoretical framework (the resource-based view, resource-dependence theory, and stakeholder theory) and identifies and evaluates drivers and sub-drivers. The paper adopts Grey-Decision-Making Trial and Evaluation Laboratory multi-criteria decision-making method to evaluate the inter-relationship between the sub-drivers. A structural model has been developed based on the outcome of the empirical analysis. The study recommends that firm should focus on the important drivers (sub-drivers) – Circular Value Marketing (Recovery/Recycling information on a Product), Circular Services (Supplier adaptability for closed resource loop), Circular Product Design (Design of Sustainability Capability), and Reverse Flow Drivers (Incentives in Secondary Market for Recoverable Products). The implications are related to design, sourcing, and marketing functions and suggest the adoption of the influencing drivers and sub-drivers to create circular value. This study contributes to the literature of the circular supply chain by discriminating the causal relationships between factors that would help managers to develop product service systems strategy(s) to create circular value in the supply chain.
In recent years, online reviews are increasingly getting more concerns by firms and consumers because they can help mitigate consumers’ uncertainty on product quality and experienced attributes and significantly affect firms’ operational decisions. We in this study attempt to examine the remanufacturing entry and pricing strategies of manufacturers in the presence of online reviews. We consider an original equipment manufacturer (OEM) selling a new product over two periods in online retailing and determine whether and when to adopt a remanufacturing entry strategy in the market. We uncover online reviews’ quality-dimensional effect and experienced dimensional effect that jointly determine the OEM’s pricing and remanufacturing strategies. We show that in the presence of online reviews, the OEM will cautiously determine whether to adopt the first-period remanufacturing entry strategy and may also adopt the second-period remanufacturing entry strategy under certain conditions. Interestingly, the OEM will adopt the penetration pricing strategy for the new product and the remanufactured product (if available) when the actual product quality is sufficiently high, but the skimming pricing strategy otherwise, which is different from the uniform pricing strategy in the absence of online reviews. Our results also show that online reviews significantly affect the OEM’s profit and consumer surplus. In particular, when the actual product quality is high enough, the OEM and consumers will attain the “win–win” situation.
The consumption of resources is at an alarmingly high level, and there is a high need for resource-efficient alternatives to manufacturing. Remanufacturing is one way to reduce the use of both materials and energy, while still providing products with a like-new condition. This paper aims to define critical areas to assess when applying remanufacturing to original equipment manufacturers (OEMs). The research was conducted by interweaving remanufacturing’s role in a circular economy (CE) with a single case study at a robotic lawn mower OEM. The case study was split into three parts that separately investigated customer demand, product design and economic sustainability, respectively, all in the area of remanufacturing. This paper addressed the research gap in OEM strategy towards a CE with remanufacturing, defining five critical areas to assess when applying remanufacturing to OEMs: customer, product, sustainability (economic, environmental and social), business model, and production system. The findings of the paper could be useful for many OEMs willing to shift to a CE with remanufacturing.
This chapter examines the used products return service quality perceived by the end users and their corresponding willingness-to-return with respect to the used products in their possession. The chapter starts with an introduction about the issue of return quantity encountered at the used product collection stage. Then, related studies dealing with returns quantity are discussed in the background section. Next, the focal problem of this chapter is stated in the problem statement section. A detailed description about the approach (i.e., agent-based modelling and simulation) can be found in the proposed methodology section. Right after this, three simulations, with each one linked to a specific used products return scenario, are conducted in the experimental study section. The potential research directions regarding the main problem considered in this chapter are highlighted in the future trends section. Finally, the conclusion drawn in the last section closes this chapter.
Traditional remanufacturing is characterized by disassembly of a core up to an optimal depth of disassembly and by the replacement of some parts in order to achieve the specifications and reliability of the original product. Because of the product architecture and the reliability characteristics of electric vehicle batteries, such an approach does not recover the full residual value of battery cells. For batteries, a depth of disassembly up to cell level is necessary, but problematic because of inconvenient battery design features. Hence, an alternative framework will be presented, where each of the battery cells and the battery system key components are considered a core in itself, and the value of a remanufactured battery module depends on the combination of its cells. The product architecture and component requirements will be explained for batteries made of the three most common cell types used in the automotive industry. In addition, three solutions will be presented for the implementation of the proposed framework for remanufacturing regarding both product design and key aspects of the process chain, such as laser cutting and laser welding of battery cells.
Purpose
This study research contributes in fulfilling the gap by carrying out a systematic literature review (SLR) of contemporary research studies in closed-loop supply chain (CLSC). To the best of the author’s knowledge, an SLR rooted in bibliometric analysis has not been carried focusing on advent developments in CLSC. SLR employs scientific methodologies to select papers from standard databases. The SLR using advanced bibliometric and network analysis enables unveiling the key features of the contemporary literature.
Design/methodology/approach
The author has analyzed over 333 documents published from 2008 and onward. Using the contemporary tools from bibliometric analysis tools, the author presented an exploratory analysis. A network analysis is utilized to visualize literature and create clusters for the cocited research studies, keywords and publication sources. A detailed multivariate analysis of most influential works published based top 100 articles via a cocitation matrix is done. The multivariate analysis used k-means clustering in which optimal number of clusters are estimated. The analysis is further extended by using a factor analysis, which enables determining the most influential clusters in the k-means clustering analysis.
Findings
The SLR using a bibliometric and network analysis enables unveiling the key features of the contemporary literature in CLSC. The author examined published research for influential authors, sources, region, among other key aspects. Network analysis enabled visualizing the clusters of cocited research studies, cowords and publication sources. Cluster analysis of cocited research studies is further explored using k-means clustering. Factor analysis extends findings by identifying most contributing grouping of research areas within CLSC research. Each clustering technique disclosed a unique grouping structure.
Originality/value
CLSC has received considerable attention, and its core areas start with focusing on reverse logistics concepts relating reuse, recycling, remanufacturing, among others. Contemporarily, the studies have enhanced reverse logistics core functionalities interfaced with the other interesting avenues related to CO2 emission reduction, greening and environmental protection, sustainability, product design and governmental policies. Earlier studies have presented a literature review of CLSC; however, these reviews are commonly conducted in the traditional manner where the authors select papers based on their area of expertise, interest and experience. As such these reviews fall short in utilizing the advanced tools from bibliometric analysis.
Supplier selection and order allocation are important keys for reverse logistics and closed-loop supply chain networks especially with the presence of demand–supply imbalance risks. If such uncertainties and risks are not foreseen in the chain, and corresponding appropriate measures are not taken to handle them, irreparable damages would be expected consequently. The importance of this issue in closed-loop supply chains is more appreciated due to the importance and the effect of this chain on the environment. In this research, the disruption risk and the uncertainties related to the demand, market price, and the number of returned products are simultaneously considered. Purchasing from the backup suppliers and spot market are considered, to take the proper measures in case of uncertainties. Two-stage stochastic programming model is used to express the uncertainty. The decisions on the purchase from the uncertain suppliers, and reserving from backup suppliers are made in the first step. Then, after determining the uncertainties, return decisions (purchasing from the backup suppliers, spot market and the use of returned products) are made. Besides, we develop our model with CVaR risk measurement tool, and assess risk neutral and risk averse models. We also investigate how changes in the key problem parameters can affect sourcing strategies of a firm.
Strategy has been defined as “the match an ovganization makes between its internal resources and skills … and the opportunities and risks created by its external environment.” 1 During the 1980s, the principal developments in strategy analysis focussed upon the link between strategy and the external environment. Prominent examples of this focus are Michael Porter's analysis of industry structure and competitive positioning and the empirical studies undertaken by the PIMS project. 2 By contrast, the link between strategy and the firm's resources and skills has suffered comparative neglect. Most research into the strategic implications of the firm's internal environment has been concerned with issues of strategy implementation and analysis of the organizational processes through which strategies emerge. 3
Constructs an analytical framework for a resource-based approach to strategy formulation. There are five stages in this framework: analyze resources, appraise capabilities, analyze competitive advantage, select strategy, and identify resource gaps. The concepts of this framework are illustrated by reference to existing U.S. firms such as IBM, Xerox, Harley-Davidson, and 3M. This framework uses resources and capabilities as the foundation for a firm's long-term strategy because they provide direction for firm strategy and serve as the primary source of firm profit. Resources are defined as the inputs into the production process and include items of capital equipment and skills of individual employees. Capabilities are defined as the capacity for a team of resources to perform some task or activity. When analyzing the competitive advantage of a firm, durability, transparency, transferability, and replicability are considered important factors. To be successful, firms must develop strategies which utilize their unique characteristics. (SRD)
There are numerous examples and cases available of products that are being reused via remanufacturing or recycling, or combinations of reuse activities However, these products and their supply chains are not all the same with respect to a number of critical dimensions, including product acquisition, reverse logistics, inspection, testing and disposition, remanufacturing, and distribution and selling of the remanufactured product. In the following sections we document a number of diverse products that are presently being remanufactured and describe their supply chains. After each case, we summarize and discuss the distinguishing features of the supply chains. Finally, we discuss the management of each of the different supply chain systems, and identify the key research issues.
This article presents the results of a study conducted in two phases within a single industry context. The first phase involved comparative case studies to ground the applicability of the resource-based view of the firm within the domain of environmental responsiveness. The second phase involved testing the relationships observed during the case studies through a mail survey. It was found that strategies of proactive responsiveness to the uncertainties inherent at the interface between the business and ecological issues were associated with the emergence of unique organizational capabilities. These capabilities, in turn, were seen to have implications for firm competitiveness. © 1998 John Wiley & Sons, Ltd.
Drawing on the resource-based view of the firm, we posited that environmental performance and economic performance are positively linked and that industry growth moderates the relationship, with the returns to environmental performance higher in high-growth industries. We tested these hypotheses with an analysis of 243 firms over two years, using independently developed environmental ratings. Results indicate that "it pays to be green" and that this relationship strengthens with industry growth. We conclude by highlighting the study's academic and managerial implications, making special reference to the social issues in management literature. We wish to express our appreciation to the Franklin Research and Development Corporation for allowing us to use their proprietary database and to Roger Chope and Steven Matsunaga for assistance with methodological issues. We also thank Thomas Dean, Neil Fargher, David Levy, John Mahon, Alan Meyer, Peter Mills, Richard Mowday, and the anonymous reviewers for helpful comments.
Abstract This study develops a conceptual model that explains vertical integration as a synthesis of transaction costs economics,and the competence,perspective. It is argued that the two perspectives should be integrated into a unified framework,sharing the same set of assumptions. Consistent with our expectations, the results from the empirical tests show that the synthesis provides a much more powerful framework for explaining vertical integration, than each perspective may contribute alone. 3
A product is a transient embodiment of material and energy occurring in the course of material and energy process flows of the industrial system.
A linking of the Resource Based View of the firm, Resource Dependency Theory and the Vroom-Yetton model of leadership is used to show that when important technical (R&D) resources are located offshore for strategic and efficiency reasons, resource-based power goes with them. The extra-national technology units that embody those strategically important resources should be managed with inclusive methods that respect that power shift. Theoretical, empirical and managerial implications are drawn from this analysis. Copyright © 2001 John Wiley & Sons, Ltd.
This study explores the development of communitarian regulation in the American chemical industry by focusing on the history and challenges facing Responsible Care, the leading example of regulation by an industry association on the environmental scene today.
The capabilities approach to the firm postulates that firms vertically integrate activities for which they possess capabilities that are superior to potential suppliers'. The comparative contracting approach, in contrast, emphasizes high asset specificity as leading to vertical integration. This paper compares the two sets of explanations on make-or-buy decisions made by a large firm. It finds that in some cases asset specificity alone is determinant, but in others capabilities and combinations of considerations are explanatory. Analysis of the data also provides insights about the mechanisms through which capabilities operate. In particular, the similarity of the knowledge bases associated with various activities, and the time required to acquire knowledge, appear as important indicators of the importance of capabilities to vertical integration decisions.
This paper summarizes and comments on Conner (1991) that contributes to the strategic manage-ment area by providing an historical comparison of resource-based theory and five schools of thought within industrial organization economics. Conner (1991) argues that the fundamental distinction between resource-based theory and transaction costs theory is that resource-based theory focuses on the deployment and combination of specific inputs while transaction costs theory focuses on the avoidance of opportunism. I offer three responses to this claim. First, Conner's distinction was not central to the resource-based literature at the time the article was published. Second, I raise concerns about building a resource-based theory of the firm that assumes away the problems of opportunistic behavior. Third, I offer an alternative view of the fundamental similarities and differences between resource-based theory and transaction costs theory.
How should we understand why firms exist? A prevailing view has been that they serve to keep in check the transaction costs arising from the self-interested motivations of individuals. We develop in this article the argument that what firms do better than markets is the sharing and transfer of the knowledge of individuals and groups within an organization. This knowledge consists of information (e.g., who knows what) and of know-how (e.g., how to organize a research team). What is central to our argument is that knowledge is held by individuals, but is also expressed in regularities by which members cooperate in a social community (i.e., group, organization, or network). If knowledge is only held at the individual level, then firms could change simply by employee turnover. Because we know that hiring new workers is not equivalent to changing the skills of a firm, an analysis of what firms can do must understand knowledge as embedded in the organizing principles by which people cooperate within organizations.
Based on this discussion, a paradox is identified: efforts by a firm to grow by the replication of its technology enhances the potential for imitation. By considering how firms can deter imitation by innovation, we develop a more dynamic view of how firms create new knowledge. We build up this dynamic perspective by suggesting that firms learn new skills by recombining their current capabilities. Because new ways of cooperating cannot be easily acquired, growth occurs by building on the social relationships that currently exist in a firm. What a firm has done before tends to predict what it can do in the future. In this sense, the cumulative knowledge of the firm provides options to expand in new but uncertain markets in the future.
We discuss at length the example of the make/buy decision and propose several testable hypotheses regarding the boundaries of the firm, without appealing to the notion of “opportunism.”
Remanufacturing represents a higher form of reuse by focusing on value‐added recovery, rather than materials recovery (i.e., recycling). Remanufacturing systems are widespread in the United States and are profitable. However, the management of production planning and control activities can differ greatly from management activities in traditional manufacturing. We report on managerial remanufacturing practices via a survey of production planning and control activities at remanufacturing firms in the United States. Production planning and control activities are more complex for remanufacturing firms due to uncertainties from stochastic product returns, imbalances in return and demand rates, and the unknown condition of returned products. We identify and discuss seven complicating characteristics that require significant changes in production planning and control activities. We also describe the research opportunities that exist for each of the complicating characteristics.
This article elaborates on the concept of total quality environmental management (TQEM) philosophy. Implementation of the TQEM philosophy consists of three phases. The first deals with understanding the TQM focus. The customer satisfaction variables (CSVs) are identified, analyzed, and prioritized. The major CSVs are then translated into firm response variables (FRVs). In the second phase the FRVs are enhanced, incorporating environmental concerns. Status, alternative, and impact analysis is done with regard to product, process, customer use, and disposal. Impact scores are analyzed and trade-offs are made to arrive at decisions satisfactory to business as well as environmental goals. The third phase deals with the continuous improvement effort.
Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed across firms and that these differences are stable over time, this article examines the link between firm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability are discussed. The model is applied by analyzing the potential of several firm resources for generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.
The boundaries of the firm have two fundamental dimensions. A first one concerns the scope and limits of expansion of firms within the industry (or industries) where they operate. An explanation of the boundaries, in this sense, overlaps with the explanation of so-called ‘market structures’. Why is production in some industries highly concentrated and much less so in others? What makes the difference between, say, aerospace, pharmaceutical or mainframe computers, on the one hand, and garments or shoemaking, on the other? Leaving aside regulatory measures, such as antitrust legislations, what prevents industrial production from being monopolized within a single firm? Along this dimension the boundaries of the firm over time are set by the “forces generating and limiting concentration” in the evolution of each industry (Nelson and Winter (1982); see also Dosi et al. (1993)).
This paper summarizes and comments on Conner (1991) that contributes to the strategic management area by providing an historical comparison of resource-based theory and five schools of thought within industrial organization economics. Conner (1991) argues that the fundamental distinction between resource-based theory and transaction costs theory is that resource-based theory focuses on the deployment and combination of specific inputs while transaction costs theory focuses on the avoidance of opportunism. I offer three responses to this claim. First, Conner's distinction was not central to the resource-based literature at the time the article was published. Second, I raise concerns about building a resource-based theory of the firm that assumes away the problems of opportunistic behavior. Third, I offer an alternative view of the fundamental similarities and differences between resource-based theory and transaction costs theory.
ii The research seeks to develop methodologies that aid in formulating the end-of-life strategies across a wide range of products. The analysis of current end-of-life practices identifies improvements to product design that reduce the impact of manufactured goods on the environment. There are two core parts of this research. First, the methodology determines what end-of-life strategy is possible according to the products’ technical characteristics. Second, the research validates the method by comparing the proposed end-of-life strategies with current industry practice. The resulting software, the End-of-Life Design Advisor (ELDA), guides product developers to specify appropriate end-of-life strategies. The product end-of-life strategies include reuse, service, remanufacture, recycle (with disassembly) and recycle (without disassembly). Case studies from various industries detail the outcome of a product’s end-of-life (i.e., what happens to a cell phone when it no longer functions or is outdated?). These case studies came from Japan, Korea, United States, and Europe. The product characteristics
Requiring manufacturers to manage their products when they become waste is an innovative form of regulation, one that has been adopted by countries in Asia, Europe, and North America on a variety of products that range from vehicles to appliances to batteries. However, even in many unregulated industries, some manufacturers are voluntarily assuming more responsibility for their end-of-life products, driven by customer demand and cost efficiencies. This article explores various forms of take-back regulation and highlights some of the key features of the institutions that emerge in response. In addition, it presents seven strategic product recovery alternatives, followed by a discussion of some factors managers should consider in developing a take-back strategy.
This article reviews the contribution of economic analysis to issues in strategic management. It explores why orthodox economic theory has an uneasy tension with the concerns of strategic managers, outlines some important recent contributions from industrial organizations, and attempts to develop some normative principles from recent theoretical and empirical work in transactions cost economics. The article also attempts an assessment of the respective contributions of different industrial organization paradigms to strategic management issues.
This study examines relationships among strategy, distinctive competence, and organizational performance. The analysis focuses on the perceptions of top managers in four industries (plastics, semiconductors, automotives, and air transportation). Findings indicate that these managers perceive four strategy types, Defender, Prospector, Analyzer, and Reactor, to be present within their industry. Defenders, Prospectors, and Analyzers all show competence in general and financial management. Beyond these two functions, Defenders and Prospectors have identifiable but different configurations of distinctive competence, while Analyzers' special capabilities are considerably less apparent. Reactors, as expected, have no consistent pattern of distinctive competence. Finally, although the data are only suggestive, Defenders, Prospectors, and Analyzers consistently outperform Reactors in competitive industries, but not in an industry that is highly regulated.
The resource dependence approach to organization-environment relations concerns in part the strategy and tactics whereby organizations seek to control aspects of their environment. This study utilizes and extends the resource dependence perspective and establishes the existence of a strategy that the corporate strategy literature ignores. Data from United States antitrust law is used here to sustain the argument that suppression of technology is one strategy used to control resource dependence. Specific tactics and their characteristics are identified, along with their objectives and the processes whereby these may be achieved. The paper shows that the selection of specific tactics is likely to depend on both the particular objective sought and the current judicial interpretation of these areas of law. Recent changes in the latter are producing a situation conducive to the utilization of patent-based tactics.
Firms are often encouraged to offer environmentally friendly products as a demonstration of corporate citizenship. However, this may prove to be an unrealistic expectation since a rational firm will only engage in profitable ventures; those that increase shareholder wealth. We develop a framework for analyzing the profitability of reuse activities and show how the management of product returns influences operational requirements. We show that the acquisition of used products may be used as the control lever for the management and profitability of reuse activities. These activities, termed product acquisition management, affect several important business decisions. First, if a firm is to pursue reuse activities, these reuse activities must be value-creating. Second, if a firm is to compete by offering remanufactured products, then we show how product returns management influences the overall profitability of such activities via a trial and error EVA approach. Third, we show how operational issues are strongly affected by the approach used to manage product returns. There is a need for future research specifying the mathematical relationship between acquisition price and the nominal quality of the returned product.
European Union legislation, and existing national legislation of many European countries, mandates that manufacturers take back and recover their electronic and electrical equipment. If manufacturers are to comply with legislation, models need to be developed for these activities. Whilst infrastructural and technological deficits exist and must be addressed, so too must the organization of recovery, from a business perspective. In this paper, models of resource recovery are presented and a case study described.
A dramatic reduction in the environmental impact of production practices can arguably be made by pursuing product remanufacture in which, in contrast to material recycling, the geometrical form of the product is retained and its associated economical and environmental value preserved. In order to support the design of remanufacturable products, it is necessary to identify and rank the various factors that affect and/or characterize a product's remanufacturability. In this paper, results from three surveys among independent automotive remanufacturers are presented, highlighting what a segment of the remanufacturing industry perceives as critical issues, as well as their relative importance. The first survey contained open-ended questions and its results provide insight in key concerns of a set of remanufacturers. The second survey followed up on these key concerns and more specific questions were posed in order to gain deeper understanding as to the relative importance of the concerns listed. In the third survey, local remanufacturers were asked to perform a direct comparison between key issues identified in the preceding surveys. The results of the surveys clearly indicate that the remanufacturing industry is struggling to keep up with modern production practices from Original Equipment Manufacturers. It was also clear that a number of issues dominate, but that the relative importance can vary among remanufacturers, especially with respect to design and process issues.
Historically. management theory has ignored the constraints imposed by the biophysical (natural) environment. Building upon resource-based theory, this article attempts to fill this void by proposing a natural-resource-based view of the firm-a theory of competitive advantage based upon the firm's relationship to the natural environment. It is composed of three interconnected strategies: pollution prevention, product stewardship, and sustainable development. Propositions are advanced for each of these strategies regarding key resource requirements and their contributions to sustained competitive advantage.
A resource-based approach to strategic management focuses on costly-to-copy attributes of the firm as sources of economic rents and, therefore, as the fundamental drivers of performance and competitive advantage. Interest presently exists in whether explicit acknowledgement of the resource-based view may form the kernel of a unifying paradigm for strategy research. This article addresses the degree to which a resource-based view represents a fundamentally different approach from theories used in industrial organization (10) economics. The central thesis is that, put informal terms, the resource-based approach is reaching for a theory of the firm. To determine its distinctiveness in comparison to IO, therefore, an appropriate comparison is with other theories of the firm developed within that tradition. Section I summarizes and analyzes five theories that have been significant in the historical evolution of IO. These are neoclassical theory's perfect competition model, Bain-type IO, the Schumpeterian and Chicago responses, and transaction cost theory. The first part of Section II analyzes the resource-based approach in terms of similarities to and differencesfrom these IO-related theories. The conclusion is that resource-based theory both incorporates and rejects at least one major element from each of them; thus resource-based theory reflects a strong IO heritage, but at the same time incorporates fundamental differences from any one of these theories. The second part of Section II analyzes resource-based theory as a new theory of the firm.
Achieving eco-efficient production and consumption systems requires ‘closing the loop’ to create cyclic systems. Product systems based on remanufacturing, where used products or components are restored to ‘as new’ condition for reuse, offer the potential to create such cyclic systems. For some existing manufacturers, the economic efficiency of remanufacturing is clear and it has become a widely held assumption that such systems would also be more eco-efficient. However, this assumption has not been systematically tested. This research attempted to quantify the life cycle environmental benefits achieved by incorporating remanufacturing into a product system, based on a study of Xerox photocopiers in Australia. The study found that remanufacturing can reduce resource consumption and waste generation over the life cycle of a photocopier by up to a factor of 3, with greatest reductions if a product is designed for disassembly and remanufacturing. This research represents a first-level assessment, limited by certain estimates and assumptions. It is intended that this research will form the basis of a larger, more detailed study of Xerox remanufacturing, worldwide.
This article examines strategic production and operations management issues in product recovery management (PRM). PRM encompasses the management of all used and discarded products, components, and materials for which a manufacturing company is legally, contractually, or otherwise responsible. The objective of PRM is to recover as much of the economic (and ecological) value of used and discarded products, components, and materials as reasonably possible, thereby reducing the ultimate quantities of waste to a minimum. This article also discusses the relevance of PRM to durable products manufacturers. It contains a categorization of PRM decisions. A case study based on the PRM system of a multinational copier manufacturer is presented to illustrate a set of specific production and operations management issues. The experiences of two other pro-active manufacturers (BMW and IBM) are also discussed.
The dynamic capabilities framework analyzes the sources and methods of wealth creation and capture by private enterprise firms operating in environments of rapid technological change. The competitive advantage of firms is seen as resting on distinctive processes (ways of coordinating and combining), shaped by the firm's (specific) asset positions (such as the firm's portfolio of difftcult-to- trade knowledge assets and complementary assets), and the evolution path(s) it has aflopted or inherited. The importance of path dependencies is amplified where conditions of increasing retums exist. Whether and how a firm's competitive advantage is eroded depends on the stability of market demand, and the ease of replicability (expanding intemally) and imitatability (replication by competitors). If correct, the framework suggests that private wealth creation in regimes of rapid technological change depends in large measure on honing intemal technological, organizational, and managerial processes inside the firm. In short, identifying new opportunities and organizing effectively and efficiently to embrace them are generally more fundamental to private wealth creation than is strategizing, if by strategizing one means engaging in business conduct that keeps competitors off balance, raises rival's costs, and excludes new entrants. © 1997 by John Wiley & Sons, Ltd.
This paper relates the main findings of a literature review of integrated management systems (IMS). In general, integration has been discussed in the literature dealing with quality, environmental, and health and safety management. The need for an IMS has arisen as a result of the decisions of organisations to implement an environmental management system and/or an occupational health and safety management system in addition to a quality management system. A number of differences have been identified in the interpretation of what integration means and how it should be accomplished. This leads the authors to conclude that the need for definitions is of some urgency. It is also pointed out that the current emphasis is on achieving compatibility between the standards to facilitate alignment.
Product take-back of consumer products is generally expensive, especially reverse logistics. In the take-back program for power tools in Germany, costs exceed revenues for recycling power tools. Systematic analysis of take-back alternatives can make take-back policies more attractive. For example, an alternative take-back system for power tools would combine profitable remanufacturing and unprofitable materials recycling. The profit from remanufacturing could cover the loss from recycling as well as the costs of reverse logistics, allowing the manufacturer a profit. Remanufacturing requires a continuous flow of returned postconsumer products. By buying back end-of-life products, firms could control the flow of returned products. We developed a model that allows us to determine the optimal amount to spend on buy-back and the optimal unit cost of reverse logistics. We can use the latter to select a suitable reverse-logistics system for end-of-life products. We apply our model to the remanufacturing take-back concept for power tools, using empirical data on the current take-back program.
Recoverable manufacturing systems minimize the environmental impact of industry by reusing materials, reducing energy use, and reducing the need to landfill industrial products. These systems are widespread in the United States and are profitable, in addition to contributing to sustainable development. However, the management of supply-chain activities can differ greatly from management activities in traditional manufacturing supply chains. Seven complicating characteristics increase uncertainty. Managers must take actions to reduce uncertainty in the timing and quantity of returns, balance return rates with demand rates,;md make material recovery more predictable. Managers must also plan for the collection of products from end-users. The use of information systems with new production-planning and control techniques makes management of these activities more predictable.
Discusses quality and environmental management systems integration. Concepts of a system and a “system of systems” are addressed, followed by a description of different management systems, and their interrelations and integration. Subsequently, strategies for integration of the quality system based on the ISO 9001 standard and the ISO 14001 environmental management system are presented. The harmonization of related audit sub-systems, namely ISO 10011 and ISO 14010/11/12 is also addressed. Finally, a discussion on the development of a generic performance management system is provided.
Recent public policy trends and new consumer demands are
redirecting the attention of management outside the traditional focus of
customers, suppliers and internal operations. However, little research
has focused on the perspective that operations management and the
growing body of literature on total quality management can offer much on
the environmental management of operations. Investigates the potential
link between the concept, approach, methodology and benefits of total
quality management (TQM) and environmental excellence in operations
management. Proposes a hierarchical model for the development of
environmental excellence. Environmental management has become strategic
and the integration of the design, production, delivery, circulation,
use and disposal of products is necessary to achieve improved
environmental performance. Second, by including environmental factors in
the integrated training of the workforce and the reward structure of the
firm, long-term continuous improvement is possible. Like quality goals,
environmental improvement goals must become part of the annual business
plan, with performance reviews to track progress and to encourage
environmental excellence.
Unlike most industrial sectors in the United States, the carpet industry has begun voluntarily to take responsibility for its products once their useful life is over. How do these voluntary efforts compare to the mandatory extended producer responsibility requirements now prevalent throughout Western Europe and Asia? © 2000 John Wiley & Sons, Inc. The sections “Recycling by Fiber Producers” and “Recycling by Carpet Mills” © 2000 INFORM, Inc. Used with permission.
The paper examines the relationships between the power of suppliers and buyers and the profitability of sellers who are situated in supply chains between both sets of firms. A review of the literature on power in exchange relations shows there are several power concepts which may have a different impact on seller profitability and whose impact possibly can offset each other. This may be the source of the conflicting evidence on this topic. A failure to distinguish among the concepts may also lead to an underestimation of industry effects relative to resource effects as drivers of firm profitability. The paper uses a new data base of the Banque de France on French manufacturing industry. The anlayses examine whether different power concepts may be empirically identified and what their relationships are with seller profitability. The findings point to the existence of multiple power concepts and indicate that, in the sample, industry effects are more important than firm effects (as measured by relative market share) in explaining seller profitability. The findings also suggest that buyer power explains a much larger percentage of the variance in seller profitability than supplier power. © 1998 John Wiley & Sons, Ltd.
This article describes the first fully integrated material planning system to facilitate the management of a remanufacturing facility. A number of firms are already engaged in this activity. They remanufacture automobile, truck, and other vehicle components, like starters, alternators, transmissions, and so forth. These firms take in used components, disassemble them, and assemble saleable products from the good parts they find. There is considerable uncertainty in the supply of used components, the good parts in those components, and the demand for remanufactured products. Our system is based on material requirements planning logic, something that many firms in the industry are already familiar with. Meetings with experts in the industry were used to set the parameters of the system and evaluate its approach.
Extended producer responsibility (EPR) is an emerging policy principle whose ultimate goal is to reduce environmental impact from the entire life cycle of a product/product system. Since the early 1990's, a number of countries began to incorporate the concept of EPR, especially in the form of take-back regulations. One of the product groups where application of EPR principle has been discussed and implemented is electrical and electronic equipment (EEE). A closer investigation of two EPR legislation for EEE in Europe and Asia -a decree enforced in the Netherlands, and an upcoming regulation in Japan – reveals the similarity and differences in the concrete formulation of EPR regulation. Some of issues that may be critical in the development and implementation of an EPR programme will be discussed in relation to each regulation. These focal issues, which are interrelated with each other, include: Driving forces, objectives of the legislation and their relation to requirements; Scope; Range of producer responsibility in terms of Types of responsibility; Different stages within end-of-life management; and Physical infrastructure and funding mechanism; and Historical and orphaned products. The paper attempts to see if the legislation facilitates the communication between the downstream of a product (end-of-life management phase) and the upstream (design phase), which distinguishes an EPR-based regulation from a mere take-back and recycling regulation.
Many recent antitrust cases involve aftermarkets the provision of spare parts or service for use with a previously purchased durable good. These cases rely on the Supreme Court's decision in Eastman Kodak Co. v. Image Technical Services, Inc. to argue that imperfectly informed consumers may find themselves 'locked in' to a particular brand of equipment after they make their initial equipment purchase. As a result, even if intensive competition exists when consumers make their equipment purchase, a manufacturer may possess significant market power, if not a monopoly, in the aftermarket and may use this power to increase aftermarket prices.This paper explains why aftermarket prices often are high and examines the implications of such high aftermarket prices for antitrust. Contrary to the 'lock-in' analysis of the Supreme Court's decision, the many instances of systematically high aftermarket prices we observe in the marketplace are unlikely due to manufacturers taking advantage of imperfectly informed consumers to charge supracompetitive package prices. We show that even if consumers are totally uninformed about aftermarket conditions when they purchase their equipment, they pay a competitive package price because competition forces manufacturers to offset later aftermarket price increases with initial equipment price decreases.
This study is based on the belief that economic organization is shaped by transaction cost economizing decisions. It sets out the basic principles of transaction cost economics, applies the basic arguments to economic institutions, and develops public policy implications. Any issue that arises, or can be recast as a matter of contracting, is usefully examined in terms of transaction costs. Transaction cost economics maintains that governance of contractual relations is mainly achieved through institutions of private ordering instead of legal centralism. This approach is based on behavioral assumptions of bounded rationalism and opportunism, which reflect actual human nature. These assumptions underlie the problem of economic organization: to create contract and governance structures that economize on bounded rationality while safeguarding transactions against the hazards of opportunism. The book first summarizes the transaction cost economics approach to the study of economic organization. It develops the underlying behavioral assumptions and the types of transactions; alternative approaches to the world of contracts are presented. Assuming that firms are best regarded as a governance structure, a comparative institutional approach to the governance of contractual relations is set out. The evidence, theory, and policy of vertical integration are discussed, on the basis that the decision to integrate is paradigmatic to transaction cost analysis. The incentives and bureaucratic limits of internal organization are presented, including the dilemma of why a large firm can't do everything a collection of small firms can do. The economics of organization in presented in terms of transaction costs, showing that hierarchy also serves efficiency and permits a variety of predictions about the organization of work. Efficient labor organization is explored; on the assumption that an authority relation prevails between workers and managers, what governance structure supports will be made in response to various types of job attributes are discussed, and implications for union organization are developed. Considering antitrust ramifications of transaction cost economics, the book summarizes transaction cost issues that arise in the context of contracting, merger, and strategic behavior, and challenges earlier antitrust preoccupation with monopoly. (TNM)
We present a two-period model of remanufacturing in the face of competition. In our model, an original equipment manufacturer (OEM) competes with a local remanufacturer (L) under many reverse logistics configurations for the returned items. After establishing the Nash Equilibrium in the second period sub-game, we use numerical experiments for comparative statics. OEM wants to increase L'S remanufacturing cost. Surprisingly, while L competes in the sales market, she has incentives to reduce oem's remanufacturing cost. A social planner who wants to increase remanufacturing can give incentives to the OEM to increase the fraction available for remanufacturing, or reduce his remanufacturing costs.
Each year 34 billion pounds of nylon carpet are discarded into landfills in the United States. As a case study we examine the technical and economic feasibility of recycling a portion of this source of discarded plastic. The carpet could be (I) shredded for use as daily cover at landfills or as a strengthening component of concrete, (2) sheared or chemically processed for reuse as recycled nylon or as pure nylon feedstock, or (3) made into a new type of plastic. We estimate the costs of a recycling facility to handle 450,000 Ib of discarded nylon carpet each month in Pittsburgh, Pennsylvania. We found that with current technology, regulations, and markets, only the recycling of carpet from commercial settings using shearing or chemical processing is economical and only under very narrow circumstances. We learned four lessons from this study, First, collection costs are high and can dominate the economics of recycling. Second, given time and incentives, collection costs can be reduced. Third, trying to recycle products not designed to be recycled leads to many problems. Carpet could be redesigned to make recycling easier by making the carpet out of a single material and using an adhesive that can be removed easily. Fourth, recycling processes should be designed to produce an existing material if at all possible, because new materials present marketing problems.
The paper explores the usefulness of analysing firms from the resource side rather than from the product side. In analogy to entry barriers and growth-share matrices, the concepts of resource position barrier and resource-product matrices are suggested. These tools are then used to highlight the new strategic options which naturally emerge from the resource perspective.