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Abstract

Much of the literature has investigated what the most innovative business models are in order to successfully implement circular economy principles within a company. However, the majority of modern companies are still based on traditional business models thus, it is important to study how to get these companies to adopt more circular practices. Data were collected through a questionnaire-based survey of 821 Italian companies. A cluster analysis was performed to classify their current level of implementation of the circular economy principles and a logit regression was carried out to identify the most effective drivers. Five clusters were identified: 1) “information-oriented companies” (24%), the best at communication and marketing-related activities, but the worst in relation to all the other aspects; 2) “linear companies” (41.6%), those that perform poorly in all five phases; 3) “green marketers” (15.5%), which perform well in relation to design, production and consumption; 4) “optimizers” (10.6%), which focus more on production and logistics and 5) “circular companies” (8.1%), those that register a good performance with respect to all aspects. The bad performers, clusters 1 and 2, also registered the worst economic results in the last three years, whereas the “circular champions” reported the best performance. Finally, the logit regression showed that economic drivers were the most effective at encouraging “linear companies” to adopt more circular business models. On the other hand, no significant evidence was found of any influence exerted by the drivers related to regulatory pressure, resource exploitation risks, and the pursuit of environmental values.

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... The emphasis on the importance of economic factors affecting the adoption of CE has been reflected in different studies. Gusmerotti, Testa, Corsini, Pretner, and Iraldo (2019) use cluster analysis to look at the level of implementation of CE practices and logit regression to highlight the most relevant drivers for implementation in the manufacturing industry. They identify economic efficiency as the most influential factor, commonly trying to find CE practices that address environmental concerns at the same time as these provide financial benefits. ...
... Despite the potential of CE practices to support the SDGs (Kristoffersen, Blomsma, Mikalef, & Li, 2020), Liu and Bai (2014) express that organisation have several concerns about the potential barriers for implementation. In fact, Gusmerotti et al. (2019) stress that several companies are barely aware of most of the potential benefits of CE. This has been reflected on the low adoption rate of circular economy practices in companies (Fehrer & Wieland, 2021), particularly in the case of SMEs despite the large consumption of resources attributed to these organisations globally (Meath, Linnenluecke, & Griffiths, 2016). ...
... • My organisation is willing and ready to accept outside help when necessary. Gelhard & Von Delft, 2016;Geng & Doberstein, 2008;Gusmerotti et al., 2019;Kirchherr et al., 2018;Lara & Salas-Vallina, 2017; Culture ...
Article
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Internal organisational factors have been identified as barriers to adopt circular economy (CE) practices in prior research. However, empirical evidence is limited to support this claim. Additionally, their impact on sustainable business performance, especially for the emerging economies and within the small and medium sized enterprises (SMEs) have not been studied adequately. This research bridges these knowledge gaps drawing on from CE, human resource management, innovation and sustainability literature to develop and validate a theoretical model that examines the relationships between organisational factors (leadership, innovation, culture, and skills) and their impact on adopting CE practices to enhance sustainable performance of SMEs. A survey was conducted among 205 SMEs’ employees in Vietnam, and responses were analysed using employing Structural Equation Modelling. Our findings reveal that organisational leadership will facilitate developing the culture and innovation capability to adopt CE practices through a ‘hub and spoke’ strategy for enhancing sustainable performance among the SMEs in Vietnam. In this vein, we recommend creating knowledge sharing strategies, collaborative and cooperative CE working groups within and between SMEs, and information systems capabilities to build sustainable business organisations.
... For example, in the European Union (EU), the CE is at the heart of a recent strategy aimed at balancing economic growth and environmental sustainability. According to Gusmerotti et al. (2019), the CE is the ultimate output of a set of EU policies to decouple economic growth from resource use and waste generation. Similarly, applying the CE, organizations seek to continuously achieve a positive development cycle, which preserves and improves natural resources, maximizes resource use efficiency, and reduces system risks by managing limited stocks and renewable flows (Maugeri et al., 2017). ...
... This finding is consistent with Ferasso et al. (2020) confirming the dominance of European scholars in advancing the CE literature. In Italy, the manufacturing sector is featured by industries as diverse as textile, leather, pulp and paper, which are responsible for significant environmental impacts (Gusmerotti et al., 2019). The importance of CE in Sweden is manifested in introducing economic incentives that encourage repair, such as reducing value-added tax at the point of sale and offering tax rebates to citizens on repairs. ...
... Figure 6 depicts the prevalence of studies on manufacturing and agri-food industries. The manufacturing industry has attracted significant attention from CE-marketing scholars because firms have realized the importance of implementing the CE, rethinking the manufacturing value chain, improving the efficiency of production processes, and responding to customers' expectations (Gusmerotti et al., 2019). Kamble et al. (2021) argue that manufacturing firms highly appreciate the pursuit of a CE strategy as it enables them to achieve sustainable performance, competitive advantage, and better operational practices, including recycling, reducing, and resuing optimization methods. ...
Article
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The focus on the circular economy (CE) is currently gaining momentum. In this paper, we examine how the objectives of the CE significantly overlap with those of the new generation of marketing, which emphasizes customer involvement in product design and responsible consumption. While the marketing function is essential for realizing the CE, there is still a lack of studies examining the intersection of these two critical concepts. Methodically, this paper aims to bridge this knowledge gap by conducting a systematic literature review that explains the CE-marketing nexus. In total, 45 studies were thoroughly analyzed, and findings indicate that the intersection between the CE and marketing spans four main research themes; (1) contribution of green marketing to the CE, (2) remanufacturing marketing, (3) product-service systems, and (4) neuromarketing tools. An agenda for future investigation of the CE and marketing concepts is suggested, followed by a brief conclusion. This review is valuable for scholars and managers, including those striving to have an increased understanding of the relationship between the CE and marketing.How to Cite:Rejeb, A., Rejeb, K., Keogh, J. G. (2022). The Circular Economy and Marketing: A Literature Review. Etikonomi, 21(1), 153-176. https://doi.org/10.15408/etk.v21i1.22216.
... The green economy concept was first used in 1989 to advise on the application fields, infrastructure improvements, policies, and initiatives of a sustainable development report (D'Amato et al., 2017). Due to the fact that it is a new concept, the term "green economy" has yet to be consistently defined (Gusmerotti et al., 2019). Among the proposed definitions, UNEP provides the most widely accepted and authoritative definition of the green economy. ...
... It is estimated that the concept has spread since the late 1970s (Geissdoerfer et al., 2017). First introduced by Pearce and Turner (1990), the circular economy is based on the economics of the natural assets in our environment (Desmond and Asamba, 2019;Fraccascia et al., 2021;Gusmerotti et al., 2019). In today's economy, natural resources are both a source of input and a sink for output, which they examine in great detail (waste). ...
... At the same time, circular strategies could help developing countries alleviate some of the massive pressures they face by reducing air, water, and soil pollution and increasing economic productivity. At the same time, these strategies could help developing countries relieve pressures by reducing air, water, and soil pollution and increasing economic productivity (Gusmerotti et al., 2019). ...
Article
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Green economy is a sustainable concept that has set the pace for industrial innovations across the globe. This is reflected in manufacturing, processing, and production industrial processes. There is a paradigm shift in the definition and understanding of green economy (GE) linkages to industrial symbiosis (IS), industrial ecology (IE) and clean development mechanism (CDM). We hypothesize in this study by responding to the question, "How is green economy defined in the model of eco-friendly industrial processes and their links to circularity? "We use systematic review design with the reporting system reviews and meta-analysis (PRISMA) and the Publish or Perish review tool for qualitative analytical synthesis. A total of (N = 1264) review articles were screened, and from the total, only (n = 56) articles were qualitatively synthesized. Based on previous research, we believe there are significant linkages and paradigms along the industrial symbiosis and circularity aspects. We conclude by recommending that research should explicitly inculcate incompatibilities of the green economy nexus on industrialization, the development of industrial policies that foster circularity and the combination of multiple solutions that inculcate sustainable innovations in industrial circularity.
... Similarly, a few studies have also associated CE adoption and practices with extending products' life cycle (Ellen MacArthur Foundation, 2014), reducing waste and costs (Kunz et al., 2018), improving economic and financial conditions (Aboulamer, 2018), enhancing environmental and ecological performance (Lüdeke-Freund et al., 2018), and retaining customers (Esain et al., 2016). Another study analyzed the adoption of CE in manufacturing firms and concluded that firms that prioritize financial goals over environmental goals patronize CE (Gusmerotti et al., 2019). Moreover, systematic implementation of CE in these firms relies on managers' capabilities to communicate and market the benefits of circular business models to top management. ...
... Additionally, a systemic literature review of the different companies identified that supply chain management, economic, financial, market competition, product attributes, standards and regulations, technological, and consumer behavior play a critical role in the adoption of CE (Bressanelli et al., 2019). A few notable studies have also associated low awareness of CE (De Medici et al., 2018), economic efficiency (Stahel, 2013), policies and regulations (Gottinger et al., 2020), technology and materials' availability (Gusmerotti et al., 2019), social acceptance (Madonna, 2020), and collaboration between stakeholders (Buch et al., 2018) with the factors affecting the adoption of CE. ...
... The overview of above studies specifies that most studies have identified economic, financial, environmental, and regulatory factors as the drivers of transition to CE. Whereas, little information is available regarding managers' role in transitioning organizations to adopt CE (Gusmerotti et al., 2019). While, the overview of studies related to barriers to transitioning organizations to adopt CE indicates that organizational awareness, cultural, economic, technological, and regulatory factors are critical to successfully integrating CE. ...
Article
Circular economy has emerged as an exceptional substitute for linear business models due to increasing environmental threats and the lack of planetary resources. However, the literature on the factors contributing to the transition of a circular economy is still in its infancy. This study investigates the impact of bank managers’ environmental beliefs such as perceived susceptibility, perceived severity, perceived benefits, and perceived barriers on the adoption of circular economy (ACE). The moderators of gender, age, and knowledge are operationalized to investigate the effect on the relationship between environmental beliefs and ACE. The data was conveniently drawn from 840 respondents employed at different managerial positions in the banks across Malaysia. The collected data were analyzed using the structural equation modeling technique through SmartPLS. The results indicate that perceived susceptibility, perceived severity, perceived benefits have a significant positive impact on ACE while perceived barriers have a significant negative impact. The results of the integrated model reveal that perceived benefits are the most important factor to promote ACE. The research findings represent that gender, age, and knowledge about environmental threats as the moderators have a significant positive effect on the relationship between environmental beliefs and ACE. Specifically, the results confirm that females, generation X, and preliminary knowledge plays a significant role in ACE by contributing to managers' environmental beliefs. This study contributes to developing ethical business models and offers a toolkit in the form of behavioral indices relevant to the banking industry for implementing a strategic organizational change.
... A systematic review identified that all these drivers foster a positive perception of SCPMs by company managers (Kevin van Langen et al., 2021). Gusmerotti et al. (2019) proposes that companies making greater use of natural resources are more likely to implement circular economy practices. Furthermore, a recent study showed that Dutch farmers perceive and implement circularity in different ways. ...
... These results are relevant, as greater knowledge of SCPMs could increase the likelihood of adopting circular and sustainable practices associated with these models, in line with the theorising of Gusmerotti et al. (2019). On the contrary, the findings of this study do not coincide with the results of other research suggesting that there is still a lack of knowledge about the circular economy in companies. ...
... Thus, these findings could be supported under the view of Gusmerotti et al. (2019), who argue that organizations that base their activity on natural resources (e.g., agriculture) are more likely to implement circular economy practices. Indeed, the results contrast with previous evidence suggesting that some organization leaders and farmers do not have a good perception of SCPMs (Dagevos and Lauwere, 2021;Droege et al., 2021). ...
Article
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This study aims to conduct an exploratory and comparative analysis between Fruit and Vegetable Producer Organizations (FVPOs) and fruit and vegetable producers that are not part of these organizations (Non-FVPOs) regarding the prioritization, perception, and adoption of sustainable and circular practices. For this purpose, data was collected from both groups through an online survey. Statistical techniques for the comparison of two independent groups (chi-square test, Fisher's exact test, and Mann-Whitney U test) were used to examine the differences on a sample of 14 FVPOs and 22 Non-FVPOs from Spain. Although the results show more similarities than differences between the two groups, they highlight that FVPOs are more likely to prioritize environmental factors and implement both green manuring and biodegradable raffia as the main Agricultural Waste Biomass (AWB) reduction and/or valorization practices. In addition, the findings point to the relevance of environmental considerations and specifically to the Sustainable and Circular Production Models (SCPMs) as an alternative to the traditional fruit and vegetable production system. Theoretically, the results mainly contradict resource and first mover advantage arguments by revealing that more resourceful organizations do not necessarily possess better environmental management. This study also provides innovative information and relevant contributions for governments. It allows them to identify aspects that should be strengthened in relation to policies, regulatory frameworks, and/or strategies that promote sustainable and circular production systems for both FVPOs and Non-FVPOs. In addition, it contributes with implications, for organizations and farmers, how to improve actions and opportunities to advance the transition to SCPMs.
... The circular economy-one where the value of products, materials, and resources is maintained and the generation of waste minimized (i.e., what was considered "waste" is turned into a valuable resource)-seeks to incentivize companies to contribute to sustainable development (as a new approach), especially where the current "take-make-dispose" production and consumption system is clearly unsustainable (European Commission, 2015;Gusmerotti et al., 2019). This is because the circular economy promotes innovations to eliminate waste and increase resource efficiency, which balances sustainability and economy (Kristensen and Mosgaard, 2020). ...
... Schroeder et al. (2019) suggest that circular economic practices can directly support the SDGs, especially SDGs 6 (clean water and sanitation), 7 (affordable and clean energy), 8 (decent work and economic growth), 12 (responsible consumption and production), and 15 (life on land). On the other hand, because the circular economy represents a paradigm of decoupling growth and resource consumption, we can also expect companies engaging in such practices to maintain profits, even while reducing the use of natural resources (Gusmerotti et al., 2019;Hazen et al., 2017). Nevertheless, there is still a need for specific production practices and tools that actually enable companies to reduce resource consumption, improve efficiency, and reduce waste, despite many remaining skeptical about the feasibility of the circular economy (Gusmerotti et al., 2019;Millar et al., 2019;Sauvé et al., 2016). ...
... On the other hand, because the circular economy represents a paradigm of decoupling growth and resource consumption, we can also expect companies engaging in such practices to maintain profits, even while reducing the use of natural resources (Gusmerotti et al., 2019;Hazen et al., 2017). Nevertheless, there is still a need for specific production practices and tools that actually enable companies to reduce resource consumption, improve efficiency, and reduce waste, despite many remaining skeptical about the feasibility of the circular economy (Gusmerotti et al., 2019;Millar et al., 2019;Sauvé et al., 2016). Indeed, Millar et al. (2019) suggest a lack of coherence regarding precisely how the circular economy may be implemented. ...
Article
The purpose of this study is to address the question of whether material flow cost accounting (MFCA) can contribute to the circular economy. Because MFCA is an environmental management accounting tool that simultaneously assesses company material and financial flows, it is expected to contribute to the circular economy by assisting companies to achieve both environmental and economic goals through resource efficiency. In short, the expected linkages between MFCA, company environmental and economic goals, and the circular economy are inputs, outputs, and outcomes. However, there is a lack of consensus regarding its potential, perhaps because of the scarcity of studies, with most being models and case studies without readily generalizable results. To address this gap, we analyze the triadic relationship between MFCA, environmental performance, and economic performance using a two-stage regression of data from Japanese listed companies. The main findings are as follows. Companies that implement MFCA more proactively are more likely to improve their environmental performance in terms of energy consumption, CO2 emissions, and waste produced. In turn, those that improve their environmental performance are also more likely to improve their productivity, while those that specifically improve environmental performance in terms of waste produced are also more likely to increase in profitability. Consequently, because MFCA can improve several aspects of environmental performance by saving resources, it can improve productivity by improving a range of environmental performance indicators. In particular, MFCA can improve company productivity and thereby profit, at least by reducing the amount of waste produced. This supports the view that MFCA is an effective tool to contribute to the circular economy.
... In addition, governments can provide businesses with technical assistance (Delmas, 2002), training (Testa et al., 2012) or a framework though which they can adopt voluntary agreements and other self-regulation measures (Bundgaard et al., 2017). Beyond direct support or introduction of requirements for businesses, policy can have a pervasive influence on the decisions of managers by providing signals about the future direction of markets (Gusmerotti et al., 2019;Leceta et al., 2017). ...
... Studies have highlighted the role of environmental awareness and culture within the organization (e.g., Rizos et al., 2016;Ervin et al., 2013). Managers can play a key role and lead the transition to a new model (Näyhä, 2020;Gusmerotti et al., 2019). On some occasions, the main motivations behind these shifts are concerns by company stakeholders over resource constraints and environmental impacts (Ranta et al., 2018). ...
Article
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Circular economy business models (CBMs) are identified as important levers in the transition to a circular economy (CE). In recent years, a growing body of research has examined the barriers and enablers to these models, however, the available empirical evidence is still limited while sector-specific assessments are lacking. Our study aims to enrich the research in this field by identifying barriers and enablers to the implementation of a variety of CBMs in the electrical and electronic equipment (EEE) sector. Based on this analysis, we provide several policy insights. The EEE sector has been chosen as the focus of this study as a sector with large untapped potential in implementing circularity practices. The study adopts a multi-case study approach and uses a sample of 31 cases developed through the CIRC4Life EU-funded project and the snowball sampling method. To our knowledge, this represents the largest case study sample used to examine CE approaches in the EEE sector. Our findings show that despite the various policy instruments in place to boost the CE transition in this sector, there exist gaps which require policy attention. These include lack of rules for transparency across supply chains, weak enforcement of EU waste legislation rules, limited use of circularity criteria in public tenders and lack of CE standards. Inconsistent requirements stemming from different policy domains can also pose challenges for companies adopting CE practices. Among the suggested actions that can facilitate CE practices include knowledge sharing platforms and business partnerships, R&D project grants, product CE labels, financial incentives and awareness-raising campaigns.
... In this regard this research aligns with previous recent studies (De Angelis and Feola, 2020) who investigated how an innovative Italian spin-off company, namely, "Naturalmente colore", was experimenting the adoption of circular principles and business models. We have chosen to analyse a sample of start-up companies because they are more innovative at cultural level (Bressanelli et al., 2019) and are particular meaningful as they are less constrained in adopting CE in a radical way compared to traditional companies (Bressanelli et al., 2019;Gusmerotti et al., 2019). Moreover, often this kind of firm is born as circular start-ups, showing different interesting characteristics for this study. ...
... On the contrary, growing circular firms are traditionally linear companies, which are in transition towards circular business models. These are often medium and large companies, founded for several years and with different established routines, and consolidated business models that make changes very complex (Mura et al., 2020;Bressanelli et al., 2019;Gusmerotti et al., 2019). ...
Conference Paper
The themes of climate change, over-consumption of resources and social inequality are some of the most important current issues that the society has to promptly tackle. In this context, the circular economy paradigm is attracting a great interest of the policy-makers, organizations and scholars as it is expected to contribute to reduce the environmental impact of human activities by prolonging the value of resources as well as better revalorising them. The application of Circular Economy model also entails circularity in the relations between the actors of the society, e.g. between organizations and its stakeholders for pursuing a more inclusive society. In this scenario, organizations play a critical role in addressing the environmental and social challenges as actors able to trigger deep and necessary changes through their strategic choices. In fact, at worldwide level there are numerous Small and Medium Enterprises (SMEs), as well as innovative start-ups that are showing a high level of awareness about these challenges and are adopting new business models more aligned with the current sustainable vision of doing business in which the care of people, the environment and society assumes a key role. Moreover, circular start-up companies seem currently much suitable of adopting disruptive circular strategies and move away from the linear model of production and consumption of resources, while large incumbents tend to focus on consolidated circular strategies that do not imply a much stronger shift in the core business models. Despite it, the evaluation of circular strategies and circular business model innovation adopted by start-up companies received a lower attention in the international scientific literature compared to large incumbents. In order to tackle such issue, this paper investigates the business models of circular start-ups with the main goal of understanding how they contribute to achieve a more inclusive, human-centred and environmentally friendly society through a multiple case studies approach. The six case studies analysed show how circular start-ups focus on innovating waste management and treatment activities creating new forms of innovative entrepreneurships able to generate positive social impacts other than environmental and economic ones. Finally, results show that circular start-ups could play a critical role in the transition to circular business models in particular by facilitating the close of the loop as required by the circular economy paradigm, as well as by pushing large incumbents to develop circular business model innovations.
... Organisations must clarify how they create, deliver, and capture value within closed material loops (Chen, 2020). For this reason, businesses use different business models that aim to reduce resource consumption, increase efficiency, and reduce waste while transitioning from a linear economy to CE (Gusmerotti et al., 2019;Jonker et al., 2017). However, owing to the limited application of new CEBMs, the history of successful paradigms to improve practical knowledge is not yet sufficiently comprehensive, creating uncertainty around the introduction of circular applications (Rizos et al., 2016). ...
... CE offers cost-saving opportunities by reducing waste and energy costs (Tura et al., 2019). This relationship stems from, for example, replacement, reuse, or recycling of production inputs, better use of by-products, waste conversion into products, and reduced waste disposal costs (Toker et al., 2020;Gusmerotti et al., 2019). Resource use, material and building costs, energy consumption, and material waste reduction also complement these physical factors from an environmental and cyclical perspective (İkiz Kaya et al., 2021). ...
Article
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While the circular economy has recently been the subject of considerable theoretical debate, the discussion has yielded limited insight into how its implementation should look. Developing countries’ inadequate regulation and policy hinder the circular economy’s implementation in small- and medium-sized enterprises (SMEs) with resource, strategy, and skill constraints. Therefore, circular economy business models (CEBMs) support SMEs in overcoming the risks of implementation. However, SMEs often struggle to decide which CEBM to use. This study aims to enable developing countries’ SMEs to choose the most appropriate CEBM using the spherical fuzzy TOPSIS method, which is an extremely new method for solving decision-making problems. The four main CEBMs most frequently encountered in the literature and practice have been extensively analysed. The results suggest that the resource recovery model is the most appropriate model for transitioning to a circular economy for SMEs in developing countries. Circular supply is the second suitable business model. Following these stages, after the organisation reaches a specific level of CE maturity, the product life extension and the product–service system model should be applied at the last stage. A comparative assessment and a sensitivity analysis are conducted to test the proposed methodology’s robustness and reliability. The results opened up a space for discussion and for new thoughts that could improve the scope of the CEBMs theory. Using all CEBMs together, we concluded that the transition to CE will not be successful for SMEs. The order in which CEBMs should be applied in the transition to CE has been determined. Their scope, risks, and resources needed were correlated with these data from the field. This practical implementation guide, which we recommend based on theoretical foundations, offers administrators and future researchers original insights.
... The steady growth in academic interest in CE as a purpose and mission-oriented program over the past few years Hekkert et al., 2020), has led to progress in conceptualizing CBMs. While the first phase of research into CBM investigated the conceptual foundations (Bocken et al., 2016;Hofmann, 2019;Lewandowski, 2016;Lüdeke-Freund et al., 2018;Rosa et al., 2019), such as the drivers, opportunities, risks, and barriers of CBMs (Gusmerotti et al., 2019;Linder & Williander, 2015;Tura et al., 2019;Vermunt et al., 2019), the second phase explores circular entrepreneurship and the organizational dynamics of incumbents initiating CBMs (Chen et al., 2020;Henry et al., 2020;Khan et al., 2020). Most of the successful market launches of CBMs have so far occurred in niches in the premium segment; therefore, CBM innovation is not yet a part of the mainstream. ...
... Moreover, they demonstrate that firms do not just adapt to external environmental conditions and stakeholder expectations, but also shapes their ecosystems. The two CBM experiments studied accentuate the efforts of the firms to face the seemingly insurmountable challenges of the ecological transformation of markets; this proves that they do not "stand with their backs to the wall" and do not freeze in the face of the multitude of barriers that have been identified in the research into CBM innovation (Gusmerotti et al., 2019;Hansen et al., 2021; F I G U R E 4 Framework of circular business model experimentation capabilities Linder & Williander, 2015;Tura et al., 2019;Vermunt et al., 2019 Therefore, this study focuses on the conceptualization of CBM experimentation capabilities at the beginning of a corporate transition towards CE value creation logics, which is often accompanied by organizational conflicts and paradoxes . ...
Article
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Real-world experiments are best suited for testing and validating novel circular business models (CBMs). Despite the increasing prominence of experimentation in CBM research, there is a lack of investigations on how firms manage and organize CBM experiments. This study aims to fill this research gap by examining the organizational capabilities needed to orchestrate CBM experiments, beyond prototyping, piloting, iterating, and scaling up. Drawing on a systematic within-and cross-case analysis with two fundamentally different firms that nevertheless share the same objective - the dynamic stabilization of a long-term viable CBM - we offer a new perspective on the management and organization of CBM experiments. The study shows how the investigated firms have developed three CBM experimentation capabilities over time, which can be disaggregated into (1) contextualizing, (2) dynamic co-structuring, and (3) governing intangible assets. Moreover, the findings provide further theoretical directions for CBM experiments and identify gaps for future research.
... The organisational characteristics (Katz-Gerro and Sintas, 2019) at the business stage (Moric et al., 2020) appear as a conditioning factor for CE development. Moreover, economic drivers' importance as a cost reduction system directly affects CE's perception in SMEs (Gusmerotti et al., 2019). To these internal factors, different external situations are added that restrict CE implementation, such as: ...
... Several studies support that circular activities lead to better company performance (Zhu et al., 2010;Khan et al., 2020;Scarpellini et al., 2020). In the study by Gusmerotti et al. (2019), for example, the different advantages for companies that adopt the CE principles were identified, including the improvement of the brand and customer satisfaction (Ambec and Lanoie, 2008;Darnall and Sides, 2008), that we can associate with market performance, reduced environmental impact (Manninen et al., 2018;Nußholz, 2018), associated with environmental performance, increased competitive performance (Iraldo et al., 2009), related to market performance, and reduced dependence on the supply of raw materials together with less exposure to the risk associated with it (Winn and Pogutz, 2013;Kalaitzi et al., 2018), which can be related to production performance. ...
Article
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This study aimed to analyze the relationship between circular business model innovation and business performance in Brazilian industrial chemical companies. This is a quantitative study carried out through a survey with Brazilian industrial companies. Based on a homogeneity analysis (Homals), the results showed that the high degree of innovation in business models from the adoption of circular economy (CE) strategies in the analyzed companies confirms that a significant change leads to superior performance, especially in market, production, economic and financial, and social.
... As they are confronted with new challenges related to the environment and sustainability, organizations must rely on internal and external drivers to innovate and create circular business models and implicitly "greener" business [24]. However, there is not just one important driver that guarantees a successful transition, but rather a fusion of facilitating factors, resulting from particular local conditions [25]. ...
Article
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The notion of Corporate Environmental Responsibility has been extensively researched in the literature so far, but less is known about how this concept fits into the circular economy paradigm. We performed a moderated mediation analysis in order to identify the mechanism that links corporate environmental responsibility with readiness for change towards a circular economy business model. The findings from 311 respondents show that there is a positive association between corporate environmental responsibility and the readiness for change to a circular model, mediated by perceived circular economy drivers. In addition, perceived circular economy barriers hinder this positive relationship, acting as a buffer. These findings can further contribute to the elaboration of a conceptual framework for embedding circular economy in the corporate social responsibility strategies of organizations.
... Gusmerotti et al. [22] emphasize that a life-cycle perspective is required in this shift. A vision to achieve circular solutions is typically realized in a coalition involving parties with different roles. ...
Article
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This study explores how different forms of management control support and enable business model innovation in the context of the principles of the circular economy. Following a qualitative research approach, empirical data is collected from construction companies and governmental organizations in the Netherlands. Building on Simons’ four levers of control. This paper illustrates how to balance the intended and emergent strategies via the organization’s management control system. According to Simons, the four levers encompass the beliefs systems, the interactive control systems, the diagnostic control systems, and the boundary controls. The empirical findings uncover the beliefs systems and the interactive control systems to be the most relevant levers that enable and drive business model innovation striving for the effective use of materials. Rather than measuring the output with predefined performance indicators, business model innovation in this context is better served by diagnostic controls which evaluate how innovative business models contribute to the organization’s mission.
... This study is further extended by Khan and Haleem (2021) through advancement in the list of CE practices and analyse of them with the help of the empirical method. In this row, Gusmerotti et al. (2019) studied the circular practices in the context of an Italian corporation and determined the extent to which the CE's principles are being implemented in their JM2 organisations. Saroha et al. (2021) address the issue of how circular practices are helping in circular supply chain management implementation for sustainability in the Indian auto sector. ...
Article
Purpose-Consumers, governments and regulatory agencies are concerned about the social and environmental aspect that pushes firms to move towards the circular economy. The transformation of the existing linear model into a circular model depends on several circular economy practices. Therefore, the purpose of this study is to identify and analyse the critical factors that are responsible for the adoption of circular practices. Design/methodology/approach-In total, 15 critical factors are identified through the literature review and 12 are finalised with the grey Delphi method. Further, these critical factors are prioritised using the weighted aggregated sum/product assessment (WASPAS) method. A sensitivity analysis is also conducted to test the robustness of the ranking of critical factors obtained from WASPAS. Findings-The finding of this study show that "top management participation," "market for recovered products" and "circular economy oriented R&D activities promotion" are the most significant factors for circular practice adoption. These factors need to address on the highest priority by the stakeholders. Research limitations/implications-This study is beneficial for the managers to formulate their strategies for the adoption of circular practices. The prioritisation of critical factors supports the managers and professionals to optimise their effort and resources to adopt the circular practice. Originality/value-This study explores and analyses the critical factor for circular economy practice adoption in the supply chain in the context of emerging economies.
... On the other hand, organisations with well-developed capabilities of knowledge transformation and exploitation are more likely to achieve a competitive advantage through innovation and product development than those with less developed capabilities (Gururajan and Fink, 2010). As fostering the transition to a circular economy requires significant changes within the organisations' activities and processes (Marrucci et al., 2017) and could provide significant competitive advantages (Gusmerotti et al., 2019), ACAP and circular economy have relevant contact points. Consequentially, ACAP might play a fundamental role in achieving both sustainability and a circular economy in an organisation. ...
Article
Despite the general interest in the circular economy, organisations have difficulties in implementing circular practices. Developing absorptive capacity (ACAP) may foster circularity among organisations. The paper aims to shed light on relationship between ACAP and organisational performance. To empirically investigate the contribution of ACAP in circular economy implementation, the authors analysed a European sample of more than 800 Eco-Management and Audit Scheme-registered organisations through partial least squares structural equation modelling. The analysis demonstrates that ACAP and the underlying organisational activities of a firm significantly facilitate the implementation of a circular economy and the internalisation of an environmental management system (EMS), which consequently improve the overall performance of organisations. The authors found that the diffusion of the circular economy in the organisations' environment does not affect their commitment to implement a circular economy. The study expands the academic literature by framing the concept of the circular economy with ACAP theory, thereby highlighting the contribution of acquisition, assimilation, transformation and exploitation. The results also provide useful insights for practitioners highlighting how organisations with an environmental certification can identify and pursue opportunities deriving from a circular economy. Finally, the research contributes to the debate on the effect of internalising EMSs and how ACAP improves economic performance, environmental performance and reputation.
... Measuring circularity is a still a huge challenge. Organisations have developed different approaches for defining circularity metrics (Gusmerotti et al., 2019), as confirmed by Corona et al. (2019) who reviewed the most common measurement models for a circular economy. They found that none of the current circularity metrics address the concept of the circular economy in full, potentially leading to undesirable burden shifting from reduced material consumption to increased environmental, economic or social impacts (Saidani et al., 2019). ...
Article
Although the circular economy is a key strategy to mitigate climate change, the relationship between them has rarely been investigated. This study aims to fill this gap by applying a life cycle assessment to evaluate the benefits of circularity interventions in the tanning industry. We compared the baseline scenario with no circular actions a circular scenario with salt recovery and tannin baths reuse. We then calculated the environmental benefits with regard to vegetable-tanned leather. Although our results proved the positive effects of the circularity activities adopted in the production phase, the environmental impacts related to the upstream supply chain of the leather accounted for 85% of the total negative impact. In fact, the environmental benefits obtained were completely nullified by the impact of cattle raising and slaughtering, which even led to a slight deterioration in the circular scenario. Our study highlighted the need to better align interventions designed to promote circularity and mitigate climate change by expanding the range of actions to the company's suppliers. We revealed that a green supply chain management is key to achieving circularity and a zero-carbon future. Lastly, we also highlighted the importance of adopting life cycle assessments to evaluate the effects of circular business models, but especially to identify the main environmental hotspots. By using an LCA, organisations will be able to avoid circular washing, i.e., circular practices that provide only limited benefits in relation to the overall environmental footprint.
... Designing a circular economy model is consistent with the adoption of these SDGs (Chen et al., 2020). Circular economy (CE) is a business concept that involves a sustainable utilization of materials, thus extending their utility and values, reducing raw material consumption, and creating more valuable products from waste (Gusmerotti et al., 2019;Rajput and Singh, 2019). CE is like a closed supply chain in which waste materials are recycled and reused (Moktadir et al., 2020). ...
Article
Improvement of biomass utilization productivity following cascading strategy is a priority for the biorefinery-based circular bioeconomy. In recent years, the field of energy research has seen an increasing interest in bio-products from paddy-based biorefinery, but the utilization of the entire value of paddy biomass to guide the commercial viability of its products has not been got feasible outcomes. Here we propose a potential pathway for a conceptual paddy biorefinery framework by addressing wastes for producing more products. The feasibility of the integrated biorefinery was demonstrated by the conversion of wastes into value-added products such as nano-silica and lignin. In particular, this is the first time that silica recovered from bioethanol system was continued to be reused to produce ZSM-5 and Ni/ZSM-5 as catalysts of rice straw lignin depolymerization achieving high conversion of lignin up to 95% and fair yield of phenolic products up to 41%. Material flow of an integrated biorefinery model was reported to give a future outlook for making most of the processing routes of rice residues. We also established a life cycle that follows the circular bioeconomy concept and discussed the relationship between each of potential bioproducts and their market opportunities.
... Circular practices in product development have been identified as a significant driver of CEBM in organisations (Nußholz, 2018). Organisations improve their efficiency by developing their waste recovery processes and decreasing the production of waste (Gusmerotti et al., 2019). Consumers have a positive attitude towards the recycling of e-waste due to the environmental benefits, that leads to the environment friendly actions (Dhir et al., 2021a,b). ...
Article
Full-text available
Literature on the circular economy business model (CEBM) has witnessed a sharp upsurge in recent years. Although, CEBM has been investigated in several ways such as green business model, waste management, digital technology, supply chain, and financial impact of CEBM. Yet, the critical analysis of prior literature has not attracted scholarly attention. The current systematic literature review on CEBM is an attempt in this regard to critically analyse and apprise the prior literature findings by following the robust research protocols. A pool of 88 studies was analysed to identify the research thematic areas, recognize the research gaps, and present future research agendas. Subsequently, this analysis has classified the research themes, namely barriers of CEBM, drivers and enablers of CEBM, and CEBM challenges and opportunities. This highlights a comprehensive assessment of the current state of the art on barriers and drivers involved in the execution of CEBM. The SLR has also recognized the research gaps and presented the avenues for future research enhancing current understanding of the nuances of CEBM implementation. Moreover, an actor-network theory based conceptual framework for CEBM implementation is proposed to be further investigated. The study findings have been concluded by providing the theoretical and practical implications to overcome the barriers and address the challenges involved in CEBM implementation.
... Most of the existing studies have focused on the latter two dimensions rather than on enterprises and organizations at the microlevel ( Ma et al., 2015 ). The few micro-level studies almost exclusively discussed the development of new CE business models ( Lewandowski, 2016 ) and highlighted the obstacles and incentives in introducing CE ( Aranda-Usón et al., 2020 ); the focus of these studies was not on implementing the CE concept in the manufacturing processes of enterprises ( Gusmerotti et al., 2019 ). Because enterprises are expected to have a large amount of wasted resources in their processes, such as non-recyclable waste and nonrecyclable by-products, it is necessary to recognize that the enterprise is the main stakeholder in CE practices ( Ma et al., 2015 ). ...
Article
Satisfying the requirements associated with environmental concerns and resource efficiency in the manufacturing process has become necessary to realize effective production management. Specifically, manufacturers must identify novel working procedures or methodologies to enhance the resource efficiency and environmental friendliness of production processes. Green-lean production and a circular economy are promising schemes to achieve this goal. However, compared to green-lean management, the implementation of a circular economy in production operations remains relatively unclear. Several scholars have recommended the combination of the circular economy and green-lean concepts to bridge this gap, however, systematic methods remain to be developed. Considering this aspect, this study proposes a method that integrates green-lean solutions with the circular economy concept. The proposed method is applied in production operations through the principle of continuous improvement to enhance the environmental and resource performance aspects. The method includes three successive phases, which can not only help managers fully identify the opportunities for improvement but also provide managers with directions for improvement by introducing four strategy quadrants. The effectiveness and practicability of the proposed method are proven considering an industrial case of the assembly workshop of an automobile company. The proposed study can support enhance theoretical knowledge regarding the green-lean and circular economy concepts and demonstrates the implementation of a circular economy in the process of optimizing the production operation of manufacturing enterprises.
... CE is seen to reduce conflicts between the competitive and environmental priorities within a company, making it more competitive, while at the same time reducing its environmental footprint [24]. In a broad context, the expectations towards CMS are: ...
Article
The circular economy paradigm requires new methods to design and operate manufacturing processes. In a production facility, reducing waste as well as optimizing waste management is of fundamental importance for companies aiming at adopting circular economy practices. This paper presents the concept of an intelligent waste management system for the efficient collection and recycling of industrial wastes, focusing on the metalwork-copper industry. The proposed approach facilitates the optimization of resource management in the waste collection process through the elimination of waste and the minimization of process variation, while, along with waste monitoring, consists of steps towards the creation of circular economy ecosystems. A software platform is proposed for receiving and storing waste data from the production, comparing them with expected statistical values and identifying abnormalities and/or deviations from pre-defined thresholds.
... CE model is known as a solution to the increased demand for natural resources that continue in the future. Industries that are dependent on natural resources will be more motivated to adopt a CE [19]. ...
Article
Full-text available
The furniture industry is one of the leading sectors and has a positive trend in Indonesia’s industrial sector. However, currently, there is a gap between supply and demand for timber and environmental impacts problem. The circular economy model entered as a restorative or regenerative concept to optimize resources and waste minimization. This research is conducted to assess the factors that drive the implementation of circular economy in the Indonesian furniture industry. The Fuzzy-Dematel was used to find the factors that were contributing to the implementation of the circular economy. As a result, the cause group consists of knowledge of circular economy, government support & legislation, consumer awareness, the business principle for the environment, and scarcity of resources. Furthermore, the effect group consists of resources efficiency, economic (financial), technology availability, environmental safety & management, customer-supplier collaboration, corporate image, consumer demand, increased value products, and cost reduction. In addition, some strategies for the government and industry were proposed for circular economy implementation in the Indonesian furniture industry.
... In the case of using recycled products, governments can take away barriers by sharing information, settings standards, preferring recycled products in green public procurement, and by stimulating the market [78]. In combatting barriers, governments have to adopt a mix of instruments covering items such as command and control, market-based instruments, and voluntary programs and communicate to managers how it "pays to be circular" [79]. ...
Article
Full-text available
This study investigates the applicability of the Dutch Green Deals policy instrument for use in projects that help the transition towards a Circular Economy in the Netherlands. Green Deals provide an opportunity for firms, NGOs, universities, and provincial, municipal, or waterboard governments to sign an agreement with the national government to take away barriers for a Circular Economy related innovation. Quantitative and qualitative content analysis has been performed, categorizing all green deals as being related to Circular Economy and those are further categorized thematically and analytically. A total of 50 relevant Green Deal agreements are selected for quantitative and qualitative content analyses that cover 9 themes, 20 industry classifications, and 10 types of action undertaken, being particularly popular in the biobased economy and construction industry. The policy instrument is believed to be successful in addressing a variety of barriers and as useful in strengthening national innovation systems, thus, it can be recommended for application in other countries. The instrument does lack clear policy indicators and would benefit from explanatory reviews with each agreement. Future research could compare this policy instrument to similar instruments employed in other EU countries and developing countries, the potential role of green financing for such green deal agreements should also be considered.
... This study focused exclusively on the manufacturing sector because it has the greatest number of registrations among Italian EMASregistered organisations, that is, 292. The manufacturing sector is also one of the most critical and impactful sectors for the environment (Gusmerotti et al., 2019). In fact, the pressures exerted on the environment by manufacturing involve different environmental aspects contributing to ecological stress. ...
Article
Environmental management systems' effects on organisations' environmental performance are still an open issue. This study assesses the contribution of the Eco-Management and Audit Scheme (EMAS) to corporate environmental performance. The study also investigates the correlation between the environmental and economic performance of organisations. Environmental indicators were collected from 268 environmental statements of Italian manufacturing firms, while economic indicators were obtained from the Orbis database. After analysing around 5000 indicators, the results indicated a slight deterioration in some organisations' environmental performance and an improvement in the economic performance. No correlation was found between environmental and economic performance. Moreover, around 60% of the organisations are not fully compliant with the standard requirements linked to the environmental statements. The results question the positive effects of environmental management systems on environmental performance.
... Fifth, manufacturing companies are called to implement reverse logistics and manage the endof-life of products, to reuse products, remanufacture components and recycle materials (Garza-Reyes et al., 2019). Lastly, company general green habits can be set for facilitating the implementation of Circular Economy, such as raising awareness and green marketing and communication (Gusmerotti et al., 2019). ...
Conference Paper
Nowadays manufacturing companies are struggling with the transition towards a Circular Economy focused on sustainable production and consumption. The transition from linear business models to a Circular Economy is a great opportunity for industrial organizations to gain competitive advantage while decoupling economic growth from resource extraction and waste generation. However, manufacturing companies frequently fail in understanding where to start in approaching such a systemic transition, as fundamental changes are needed in the design of products, production processes, business models and supply chains. Moreover, scientific literature has only recently started to discuss Circular Economy extensively, still giving little support in understanding how it can be introduced in industrial organizations. To provide a first attempt into filling this gap, this paper proposes a model to assess the readiness of manufacturing companies for the Circular Economy paradigm. A review and a critical comparison of existing tools is carried out. Based on this review, a readiness assessment model is then proposed. The model provides an improved understanding of Circular Economy for manufacturing firms, supporting them in assessing their potential and giving insights on where to start to address such transition.
... This seems logical, as CE as a concept has evolved from precursor ideas and business models based on technological innovations for waste, including industrial ecology and cleaner production (Calisto Friant et al., 2020). However, several studies have shown that companies are engaging with CE across a number of sectors and service-oriented value propositions (Gusmerotti et al., 2019;Pereira and Vence, 2021). Additionally, most of the reviewed studies focus on the sustainability reports of companies operating within a single country, most frequently China (e.g., Wang et al., 2014;Yang et al., 2019), making it only possible to gain insights on the reporting practices of companies within that country. ...
Article
Full-text available
Circular economy (CE) continues to become an increasingly important topic within disclosure frameworks and taxonomies for sustainable finance, however, early evidence points to CE not readily being included within corporate sustainability reports. Therefore, this research aims to explore how CE is emerging within the sustainability reports of companies listed in sustainability rankings. More specifically, the presence of CE within five corporate sustainability reporting elements has been investigated (when applicable): (i) the Chief Executive Officer's message, (ii) non-financial materiality assessments, (iii) references to the Sustainable Development Goal framework, (iv) targets, and (v) indicators. Qualitative and quantitative content analysis techniques were utilised to review 138 reports published in 2020 from 94 European companies, not restricted by sector. Results showed that nearly all companies are explicitly referencing CE, however, only 7% of them integrate CE within all five sustainability reporting elements. Less than one third of companies were found to include both targets and indicators for CE suggesting that overall, CE content within sustainability reports is largely superficial and inconsistent. This investigation contributes a descriptive overview of current CE reporting trends and shortcomings, as well as detailing implications relevant for academia and practitioners developing sustainability reports and/or CE assessments. The transition towards a CE requires transparency, therefore, further research and engagement is needed to better define the value of CE within external corporate communication.
... Lahane & Kant (2021) used the analytic hierarchy process (AHP) to evaluate the circular economy's development level of Indian manufacturing industry. Gusmerotti et al. (2019) evaluated the development level of enterprises' circular economy using the cluster analysis method, based on questionnaire survey data of 821 Italian enterprises about the process of using raw materials and recycling waste. Dubey et al. (2020) evaluated environmental performance based on big data analytics, artificial intelligence, and machine learning. ...
Article
While achieving rapid economic growth, the pressure caused by environmental pollution and resource depletion has increasingly become a bottleneck in China’s economic development, making the development of a circular economy particularly important. The extant literature has not focused on the influence of environmental regulation on a circular economy performance. This study uses the metafrontier global direction distance function (Metafrontier-Global-DDF) super-efficiency data envelopment analysis (DEA) model to estimate the circular economy performance and decomposition values of circular economy growth rate in 286 prefecture-level cities in China from 2003 to 2018. It further tests the influences of environmental regulations on circular economy performance and its influencing mechanism. The results show that environmental regulation can play a linear role in promoting the performance of the circular economy, mainly through the “catch-up effect,” while “innovation effect” and “demonstration effect” have not yet played an effective role. This study provides evidence for the performance evaluation of the circular economy in China and the relationship between environmental regulations and circular economy performance. The future development of a circular economy still needs the active development of circular economy technology in each city. The role of the “innovation effect” and “demonstration effect” in improving the performance of the circular economy should be further enhanced.
... First, the study provides an analysis of the drivers involved in the adoption of I4.0 in a functional CSN. Although several studies have investigated the drivers involved in the adoption of CE (Gusmerotti et al., 2019;Maqbool et al., 2020;Govindan and Hasanagic, 2018) and I4.0 Stentoft, 2019;Sharma et al., 2021) independently, and highlighted the need for integration of CE and I4.0 (Massaro et al., 2021;Rajput and Singh, 2019), there is a gap in the literature in terms of examination of factors that will facilitate this integration. The present study bridges this gap and contributes to the literature by inspecting the drivers involved in the integration of I4.0 and CE models. ...
Preprint
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Recent studies have established the relevance and importance of Industry 4.0 (I4.0) technologies in circular economy (CE) models. However, due to the vast contrast between the two concepts and their recent popularity, the factors that drive the integration of I4.0 technologies in CE models have not been explored so far. This paper, therefore, contributes to the literature by investigating the various driving factors that underpin the adoption of I4.0 technologies in a functional circular sharing network (CSN). The case CSN that is chosen for this study is an industrial ecosystem consisting of sugar factory, paper industry, spirit manufacturing industry, and cement industry. A total of 13 drivers are determined through an extensive literature review and by incorporating inputs of Expert Committees (ECs). An integrated approach of Total Interpretive Structural Modelling (TISM) and Cross-Impact Matrix Multiplication applied to classification (MICMAC) is employed to find the interdependencies between the drivers identified and to analyse them systematically. The TISM method establishes a 6-level hierarchical model of the drivers, while MICMAC analysis classifies the drivers into 4 categories. The findings reveal that Real-time data collection is the most influential driver, while gaining a competitive edge is the most dependent among the drivers that influence the adoption of I4.0 in a functional CSN. This paper aims to provide insights to industrial decision-makers and practitioners to effectively strategize the implementation of I4.0 technologies to enhance performance and complement CE principles. It also lays the foundations of future research on factors involved in the integration of I4.0 and CE.
... Sustainable and green practices can increase market share, improve image, and help in developing SMEs' competitive advantage (Mura et al., 2020). Despite the well-acknowledged benefits of circular economy practices in SMEs, studies related to circular economy practices implementation have been done majorly on a single segment of manufacturing firms (Gusmerotti et al., 2019;Mura et al., 2020) and investigation in the context of SMEs has not received adequate attention (Rizos et al., 2016). SMEs need to reconsider their operations strategy related to using scarce resources, materials and redesigning their production processes (García-Quevedo et al., 2020). ...
Article
The present study aims to develop, measure and validate an instrument for barriers to the adoption of circular economy practices in Micro, Small and Medium Enterprises (MSMEs). Using both inductive and deductive approaches, a scale was developed to assess barriers to the adoption of the circular economy practices. Then a structured and rigorous procedure was followed using the survey data of 269 participants selected from different industries in India. The measurement scales were tested and validated using exploratory factor analysis and structural equation modelling using IBM SPSS 26 and AMOS 26 tools. A competing model strategy was used to explore the most parsimonious measurement model that best fits the data. The results confirmed the existence of seven dimensions of barriers to the adoption of circular economy practices. The final instrument demonstrated a satisfactory level of reliability, convergent, discriminant and nomological validity. The instrument offers significant theoretical and managerial implications and is expected to assist scholars and practitioners in future empirical research.
... The circular economy is often heralded as a system that will allow for long-term green growth [1]. Looking closely at the circular economy [2], it can be seen as an economic system where waste materials are minimized and where everything has a use [3], with a view to reducing the impact on the environment [4]. The economic growth in these production systems, oriented towards the circular economy [5], is seen as a development of the companies operating in it and where the waste produced by one company is an input for other companies [6], thus favoring circular business models [7]. ...
Article
The circular economy represents a form of corporate production with respect to environmental resources. In the past, these production systems were widespread on the basis of the non-removability of the production factors. The advent of economic growth, in capitalist economies, has led to the deconstruction of production cycles resulting to a food product being produced in one part of the world, whilst the raw materials and processing phases are carried out in several parts of the world, due to the low production costs there. While these economic systems, on the one hand, have led to a growth in the global economic system, on the other hand they have determined the impoverishment of the territory as many companies, at least the uncompetitive ones, have disappeared. In this work, starting from examining the circular economy models, we analyze a development and growth scenario from a circular business perspective. The work highlights that the adoption of circular economy models has higher costs for the companies that implement them and therefore, to become long-term production systems, they need either cooperation among several companies to reduce the average total cost or a potential public contribution in their starting phase. The results of this study highlight that the adoption of circular economy models results in advantages at the microeconomic level. In the event that the cost of the investment cannot determine an advantage at a microeconomic level, one could think of solutions envisaging several companies that adopt a common logic of making the investment in a circular economy. The positive effects occur at the company, family and local levels.
... The survey was open for six weeks between October and November 2020. Before distributing the questionnaire, a questionnaire validation process was undertaken during July 2020 where the questionnaire was sent to five people working in Portuguese central PSOs to ensure the quality of the instrument in terms of clarity, understandability, and relevancy, as done in similar studies by Figueira et al. (2018) and Gusmerotti et al. (2019). The feedback received was analysed and considered for the final version of the questionnaire. ...
Article
Full-text available
The Circular Economy (CE) is generally understood as an opportunity to transform the current unsustainable linear economic system by redesigning the way organisations provide goods and services rethinking how society consumes and uses those resources. In this context, the public sector is mainly recognised as an actor enabling the implementation of a sustainable CE through governmental interventions and policy initiatives. However, there is a lack of studies considering the public sector at an organisational level. CE in organisations includes a wide range of different practices that are important to examine in order to analyse the CE implementation process. Consequently, this study aims to characterise the current state of implementing circular practices and supporting strategies in central public sector organisations. To fulfil this aim, a questionnaire survey was sent to the organisations pertaining to the Portuguese Central Public Administration, as surveys are valuable tools to systematically collect information on various topics. The results demonstrate a relatively low level of implementation. Circular practices such as purchasing remanufactured or used items, using sharing platforms, increasing the efficiency of buildings, adopting green human resources and collaborative initiatives for circularity, and assessing and communicating about CE activities have presented low levels of adoption. At the same time, waste collection for recycling and dematerialisation practices showed good implementation levels. There is, thus, immense potential for further implementation of circularity in central public sector organisations in Portugal. This research contributes to deepening the understanding of the extent to which circular practices are embedded in public sector organisations and identifying the main implementation strengths and weaknesses. This research has the potential to help practitioners and researchers in the transition towards circularity in identifying circular opportunities in their organisations and in building a vision to further implement circularity in public sector organisations.
Article
Integrating circular economy practices into the conventional supply chain is a challenging task due to the sheer number of risks and uncertainties involved. These risks can hamper the functioning of recovery processes and act as impediments to the adoption of circular systems. Furthermore, there is a scarcity of studies focusing on the risk aspects in the context of the circular economy. This study attempts to address this gap in the literature by identifying the risks associated with circular economy operations and proposing a taxonomy for the same. Furthermore, a risk hierarchical decision model is developed to determine the relationships among the risks and differentiate between driving and dependent risks. A two-phase approach, kappa statistical analysis and interpretive structural modelling, is used to validate the proposed taxonomy and understand the risk interactions. The study statistically categorises the circular economy risks into different categories and scientifically evaluates the interdependencies among the risks. Unlike conventional perception, majority of the high-priority risks are organisational rather than financial in nature.
Article
Most firms, especially small and medium enterprises (SMEs), find it difficult to integrate circular economy strategies within their business models. Moreover, there is a lack of research on approaches for the successful implementation of circular economies in SMEs in the field of manufacturing. To fill this gap, we investigate the antecedents of absorptive capacity in successful circular economy business cases using a qualitative multiple‐case study. Focusing on the horticultural sector, we interviewed six Italian SMEs using NVivo 12 for the analysis. The data were then classified into first‐order and second‐order categories and then sorted into absorptive capacity dimensions. Our results highlight the significant contribution provided by absorptive capacities to the circular economy in SMEs. We highlighted three antecedents for each absorptive capacity dimension and explored their key concepts. Our study contributes to the academic literature on the links between absorptive capacity and corporate sustainability by providing insights into the role of acquisition, assimilation, transformation and exploitation capabilities in the successful implementation of circular economy practices.
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.
Article
Many recent studies have highlighted the role of circular product design in the light of the transition to the circular economy. Nevertheless, the gradual incorporation of circular economy practices, methods, and tools still requires further investigation, mainly in terms of new product development, which is a key process for the adoption of the circular economy. The main innovation of this paper is its proposal of a maturity matrix for the gradual adoption of the circular economy in the new product development process. The development and proposition of this maturity matrix was based on a literature review, evaluation from experts, and application in four companies, from different industrial sectors. The matrix is composed of five maturity levels and eleven analysis dimensions, encompassing the circular economy-oriented design strategies. Among the main outcomes, the application of the matrix provides a diagnosis and broader understanding of how circular the new product development process in a company is. Moreover, the matrix can guide companies to gradually improve circular economy integration through the design of new products, contributing to the theoretical and managerial debate about the transformation processes involved in the transition from a linear to a circular economy.
Thesis
Economic growth is a major policy objective in most countries. Yet, it is associated with increasing environmental damages, related to an increase in resource use and waste production, making it unsustainable. One strategy to limit those damages consists in transforming the current economic system, where products are thrown away at the end of their useful life, into a circular economy in which products, parts and materials are kept in the production system by closing (recycling), slowing (reusing) and narrowing (reducing) resource loops. Such a replacement of the current “linear” economy with a circular one involves the transition of many socio-technical systems. One overlooked pathway to conducting such a transition relies on the adoption of circular oriented innovations by incumbent firms. It involves a change in the way incumbent firms create and deliver value, what can prove to be challenging. Hence, the objective of the present thesis is to explore how incumbent firms can create and deliver circular value. To this end, this thesis first investigates factors impacting the development or adoption of circular oriented innovations by incumbent firms using a literature review and interviews. This leads to the development of a novel classification framework, based on the motivation, opportunity, and ability concepts. This investigation particularly highlights the importance of (1) stakeholders’ behaviours at the network level and (2) resources and capabilities at the organisational level. Therefore, this thesis then focuses on ways to temper the impact of both aspects on the creation and delivery of circular value. At the network level, the impact of stakeholders on circular supply chains is analysed using a case study. The findings of this case study suggest decreasing the firm’s dependence on specific partners and support further stakeholder engagement in supply chain (re)design. At the organisational level, methodological frameworks supporting incumbent firms in developing and adopting circular business models are identified and compared using a systematic review approach. While this analysis supports the utility of methodological frameworks in compensating for a lack of dynamic capabilities, it also underlines the lack of consistency among them and the lack of validation among suggested tools. It calls for further specifying the business model innovation strategy considered by a methodological framework and for more integration of existing processes and tools. Overall, the present thesis supports the importance of jointly considering business models and supply chains in organizational transition processes towards circularity. It underlines the strong dependence of circular business models on the development of robust circular supply chains. This calls for further integration of both concepts, for example through the use of a broader ecosystemic perspective.
Article
The present paper highlights the growing relevance of the Circular Economy (CE), its adoption by Small- and Medium-sized Enterprises (SMEs), and the relationship between the drivers of CE. Using a case study of CE adoption by Tamil Nadu state in India, we analyse the interactions between the drivers and examine the challenges and benefits of CE adoption. Using Total Interpretive Structural Modelling (TISM) this paper identifies 10 main drivers relevant for SMEs in Tamil Nadu based on literature and discussions with 78 industrial-academic experts, comments on the driving, dependent and linking elements that impact the uptake and adoption of CE. The modelling results confirm that three drivers, namely urbanisation, funding availability and resource consumption, are relevant and support the successful adoption of CE. The paper is among the first that uses the TISM technique to establish a contextual linkage between CE drivers and relationship between the different drivers.
Article
Since solar panels and wind turbines have limited lifespans, solar photovoltaic energy supply chain (SPvESC) and wind energy supply chain (WESC) in Turkey needs a paradigm shift to improve the efficiency and recyclability of solar panel and wind turbine components. The circular economy (CE) is a viable strategy for reducing the negative effects of linear supply chains in the SPvESC and WESC. However, despite the several drivers of implementing CE in the SPvESC and WESC, there are also barriers to CE initiatives. It is argued that further studies are needed to explore the drivers and challenges for CE adoption in different industries of developing and developed countries. Hence, the goal of this research is to explore the driving and restraining forces for CE adoption in Turkey’s SPvESC and WESC through a decision framework that includes Neutrosphopic DELPHI-based Force Field Analysis, Neutrosphopic-DEMATEL, and Nominal Group Technique. The findings of this research suggested that because the total score of restraining forces is higher than that of driving forces in force field analysis, it is critical to investigate the relationships among the restraining forces. Our findings also suggested that nonexistence of effective incentives and regulations proved to be the most prominent restraining force.
Article
The transition from the current linear to a circular economy (CE) is a great challenge, especially in industries where the theme was barely explored as the case of rare-earth magnets (REM) production. This paper aims to provide a sector perspective about drivers and barriers to the adoption of circular economy principles in the NdFeB industry in Brazil. Based on current literature and CE manuals, a set of theoretical drivers and barriers is introduced, comprising three drivers areas: regulatory, normative and cultural-cognitive, and five barriers areas: financial, market, organizational, operational, and technological and structural. The sector perspective was analyzed through a survey, in which Brazilian REM decision-makers opined on the importance of the presented theoretical drivers and barriers. An evaluation of the correlation coefficients was performed to allow the understanding on how one variable behaves in a scenario where another variable is being changed. The main findings indicate that “improvement in competitive advantage” is the most relevant driver and “long-term financial profitability” is the main barrier. Finally, the CE drivers and barriers systematization performed in this research may foster circularity practices in the REM industry and help to understand the pathways to conserve resources through CE adoption.
Article
This study contributes to the literature by investigating the causality of circular business strategy under uncertainty using a zero-waste practice approach in the seafood processing industry and recommending managerial implications for decision-makers. The circular business strategy has increasingly attracted more notice as a proper solution to address the environmental issues and accomplish economic as well as social benefit with the ultimate target of zero-waste. Yet, prior studies failed to determine circular business strategy attributes with the complete viewpoint and adequate measurement under qualitative information. Studies on zero-waste practices from the firm perspective are limited. To fulfill this gap, this study aims to determine the decisive circular business strategy attributes, their interrelationships in view of sustainable balanced scorecard and examine influential zero-waste practices from firm perspective. A combined method, including fuzzy Delphi method, fuzzy decision-making trial and evaluation laboratory, and Choquet integral is employed. From the original set of attributes, five aspects and 20 criteria are validated. The results present that collaborative circularity, strategic internal process, and technology competency are causal aspects with high involvement among the effect group. The decisive criteria for the seafood processing industry encompass resource consumption minimization, waste minimization, clean technology, by-product marketplace, network development, and coordination upgradation. From initial zero-waste practices of the industry's current status, two critical ones are identified including reuse and recycle.
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The circular economy plays a central role in Europe's new agenda for sustainable economic growth. Using Eurostat and United Nations data from 28 European countries pertaining to the years between 2011 and 2017 we identified two underlying dimensions of the circular economy — environmental degradation and resource efficiency. Then, using dynamic panel models we assessed the impact that investment, human capital, innovation, and previous circularity levels have on each dimension of the circular economy identified, comparing their impacts on both. Our substantive findings demonstrate that innovation and investment significantly reduce environmental degradation, whereas only investment is also significant in promoting resource efficiency. Furthermore, our study suggests that circular economy levels have an inter-annual dependence.
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The transition from a linear to a circular economy (CE) is necessary, complex and requires a set of practices that develop resource value retention options (ROs). However, the current literature on the subject lacks studies that encompass and systematize practices aimed at the development of ROs along the value chain. The aim of this article is to propose a theoretical model that groups and explains how CE practices, carried out by companies from the perspective of the value chain, help to develop ROs. The model proposed in this article can be used to better understand how CE can be developed in the value chain, expanding current theoretical knowledge and helping stakeholders to establish and adopt strategies, plans and actions in their companies. This research applied the Systematic Literature Review (SLR) method resulting in 143 articles from which CE practices were identified and categorized using a mixed inductive-deductive coding approach, considering the meaning and similarity between them and views of the value chain. Finally, the relationships between these practices and the ROs were analyzed and identified according to the 10R classification scheme. As a result, 33 circular value chain practices (CVCP) were identified classified into 8 primary and 6 support categories. Examples for each practice were also presented pointing out their relationships with the ROs. Analyzing the results, it was observed that stakeholders must understand and highlight in their plans three relevant aspects of the relationship between these practices and ROs: the range of CVCP, the RO Loops developed and the supply chain perspective. In addition, support practices must be planned and implemented in conjunction with primary ones.
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Recently, the novel concept of the circular supply chain (CSC) has gained substantial attention amongst researchers across the globe. It is due to the issues of unsustainability in supply chain operation of manufacturing industry. CSC amalgamates the circular economy (CE) into the supply chain of manufacturing organizations. Business organizations can achieve several sustainable development goals by adopting CSC as an innovative strategy. However, limited attention has been given to its implementation in emerging economies. Thus, this research aim is to identify and analyze the essential CE practices that help to accomplish the several sustainable development goals (SDGs) of CSC management. This research presents an integrated framework of Pythagorean fuzzy analytic hierarchy process (PF-AHP) and Pythagorean fuzzy combinative distance-based assessment (PF-CODAS) techniques. PF-AHP is employed to determine the relative importance of CE practices, whereas PF-CODAS method ranks the SDGs derived due to the adoption of CE practices. The effectiveness of the proposed framework is validated with the help of an Indian manufacturing organization. The finding of this research reveals that practices based on 'government', 'management', and 'economy' initiatives play a significant role and contribute 50 % of its influence on the effective CSC adoption, whereas, 'mitigate waste and enhance environmental sustainability', is identified as the most critical SDG realized due to adoption of CE practices. Sensitivity analysis is conducted to check the robustness of proposed methods. This research provides the systematic, accurate, and valuable decision support tools to practitioners to execute the CE practices efficiently for achieving the various sustainability goals.
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In the decision-making process of the best available techniques (BAT), there are important uncertainties such as the absence of versatile defined evaluation criteria and systematic decision-making models. This study aimed to contribute to the development and systematization of decision-making processes for BATs in industrial facilities. An exemplary application was carried out in an integrated home textile production facility. A comprehensive cleaner production analysis study was carried out in the facility and an initial BAT list (total of 52 BATs) was prepared. In addition, a total of 40 novel evaluation criteria was defined in seven main groups such as resource use, environmental benefits, side interactions, economic saving, and applicability. A total of 15 different multi-criteria decision-making models were investigated and among them the preference ranking organization method for enrichment evaluations (PROMETHEE), technique for order preference by similarity to ideal solution (TOPSIS), multi criteria optimization and compromise solution technique (VIKOR), additive ratio assessment (ARAS), and complex proportional assessment (COPRAS) decision-making models were selected for use in the BAT decision-making process. Employing these models, most appropriate BATs were selected for the facility. In addition, the results of the studied 5 models were technically compared. It was found that VIKOR and COPRAS models can be preferred in the process of deciding on BATs in cleaner production applications. Moreover, it was concluded that the defined evaluation criteria in this work were also sufficient for decision-making processes. It is believed that this paper will be a good technical guide and provide a significant contribution to BAT selection/decision-making processes in full-scale industrial cleaner production applications in terms of elimination of uncertainties and improvement of the overall decision-making process.
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A transition to circular economy (CE) is a sociotechnical phenomenon that relies on adopting innovative methods and technologies, as well as changes in behaviour across the construction supply chain. Although a lot of ground has been covered on developing methods and technologies, there is little research on stakeholders’ change of behaviour. Informed by underlying framework, the theory of planned behaviour (TPB), a comprehensive literature review discusses several conceptual models to establish the interrelationships between barriers and drivers to managing a transition to CE – and their underlying causes. The findings offer a comprehensive point of reference for identifying factors that affect CE adoption, and lay a solid foundation for future research into CE adoption and managing a CE transition where the intermediate theories presented can be validated through empirical research.
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The European Green Deal along with directives promoting Circular Economy support sustainability transition and foster green growth through developing appropriate funding. However, information on how to access such funding affects firms' decision to expand their business strategy. This paper investigates the effect of information about financing tools on the adoption of Circular Economy business activities by exploring whether the better-informed firms are ‘greener’ and what influences such decision through a switching endogenous regressor model to account for endogeneity and selectivity bias. Data on European SMEs is combined with country-specific characteristics and econometric results indicate that better informed firms are by 65 percentage points more likely to adopt an activity promoting Circular Economy, highlighting that awareness about funding tools is crucial for sustainability transition. Evidence advocates for mainstreaming information regarding funding sources to pave the way towards green growth. A rebound effect regarding the use of renewables is observed whilst evidence points towards the rejection of Porter Hypothesis. Policy makers should target in fostering a greener business environment for the firms that engage in Circular Economy practices through increased information on funding options. Findings are also pertinent to the ongoing discussion and policy agenda around acceleration of the transition to a greener European Economy.
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In India, Wind Power-based Renewable Energy firms have been operating with obsolete wind energy generator and are facing troubles due to end-of-service life of the wind turbines and other components. Only two options are available to the wind farms under such scenario-repowering or life extension. At present, life extension is only plausible solution to aging wind turbine as repowering initiative has been very slow due to many reasons. Life extension of wind turbine generates circular value and includes reconditioning of parts, reuse of few components, and finally remanufacturing. To achieve circular value, wind turbine original equipment manufacturers (WT OEMs) need to redesign their product and services to meet customer expectation. Literatures haven't discussed about value requirement in the design and development of Industrial Product-Service System (IPS2) for life cycle extension of product such as wind turbine. To address this gap, we proposed a research framework, which is composed of two stages – first deals with elicitation of value requirement and second describes the evaluation methodology to prioritize and rank the value requirement with Fuzzy AHP. The stage-I reveals that there are five customer value elements (Pre-sales Services, Product Reverse Flow, Refurbished Product Services, Installation and Site Services, Repair, Upgrade, and Debugging Services) catering to the circular services and two elements (Product differentiation and Benchmarking, Optimized Performance). The analysis step in stage-II reveals that Repair, Upgrade, and Debugging (RUD) has got the highest priority and value requirement named as “Improved perceived performance” and “Smart monitoring” has got the highest weight under this category. This study contributes to the literature on product-service system, circular economy and requirement engineering and puts forward theoretical and practical implication in above area.
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The circular supply chain has recently received more attention as a relevant solution to effectively tackle environmental issues while simultaneously achieving resource recovery and circular business strategy benefits. This study builds a hierarchical circular supply chain structure from big data including qualitative and quantitative information. This study uses data‐driven analysis to clarify circular supply chain trends and opportunities in practice. A valid hierarchical circular supply chain structure is composed of a big dataset. However, the attributes of the hierarchical circular supply chain structure must be explored to identify the opportunities and challenges of the circular supply chain. A combination of data‐driven content and cluster analysis, including the fuzzy Delphi method, fuzzy decision‐making trials, evaluation laboratories, and the entropy weight method, is utilized to address this gap. The study analyzes a set of five attributes from the literature, and 23 criteria are validated. The results show that resource recovery implementation, Industry 4.0 and digitalization, and reverse supply chain practice pertain to the causal group, while circular business strategy and life cycle sustainability assessment are included in the effect group. The conclusive criteria comprise material efficiency, waste‐to‐energy, machine learning, e‐waste, plastic recycling, and artificial intelligence.
Purpose Industry 4.0 and circular economy are the two major areas in the current manufacturing industry. However, the adoption and implementation of Industry 4.0 and circular economy worldwide are still in the nascent stage of development. To address this gap, the purpose of this article is to conduct a systematic literature review on integrating Industry 4.0 and circular economy. Further, identify the research gaps and provide the future scope of work in this area. Design/methodology/approach Content-based analysis was adopted for reviewing the research articles and proposed a transition framework that comprises of four categories, namely, (1) Transition from Industry 3.0 to Industry 4.0 and integration with circular economy; (2) Adoption of combined factors and different issues; (3) Implementation possibilities such as front-end technologies, integration capabilities and redesigning strategies; (4) Current challenges. The proposed study reviewed a total of 204 articles published from 2000 to 2020 based on these categories. Findings The article presents a systematic literature review of the last two decades that integrates Industry 4.0 and circular economy concepts. Findings revealed that very few studies considered the adoption and implementation issues of Industry 4.0 and circular economy. Moreover, it was found that Industry 4.0 technologies including digitalization, real-time monitoring and decision-making capabilities played a significant role in circular economy implementation. The major elements are discussed through the analysis of the transition and integration framework. The study further revealed that a limited number of developing countries like India have taken preliminary initiatives toward Industry 4.0 and circular economy implementation. Research limitations/implications The study proposes a transition and integration framework that identifies adoption and implementation issues and challenges. This framework will help researchers and practitioners in implementation of Industry 4.0 and circular economy. Originality/value Reviews of articles indicated that there are very few studies on integrating Industry 4.0 and circular economy. Moreover, there are very few articles addressing adoption and implementation issues such as legal, ethical, operational and demographic issues, which may be used to monitor the organization's performance and productivity.
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Reuse is one of the most important waste-prevention strategies. Although the importance of preparation for reuse is clear, preparation centres for reuse are not common in the traditional waste management supply chain. An analysis of their contribution in waste-prevention strategies is therefore needed. Our research evaluates three preparations for reuse scenarios in municipal solid waste management with an analytic hierarchy process (AHP). These alternatives were assessed with three criteria: economic, social and environmental. Sensitivity analyses were performed to study the impact on the final ranking of changes in various parameters. Results highlight that the best alternative is to include the preparation for reuse in the waste management supply chain, with a moderate recourse to it. The study sheds light on how managers can better plan preparation for reuse activities and provides new trajectories for future research.
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The Circular Economy is increasingly seen as a possible solution to address sustainable development. An economic system that minimises resource input into and waste, emission, and energy leakage out of the system is hoped to mitigate negative impacts without jeopardising growth and prosperity. This paper discusses the sustainability performance of the circular business models (CBM) and circular supply chains necessary to implement the concept on an organisational level and proposes a framework to integrate circular business models and circular supply chain management towards sustainable development. It was developed based on literature analysis and four case studies. The proposed framework shows how different circular business models are driving circular supply chain in different loops: closing loops, slowing loops, intensifying loops, narrowing loops, and dematerialising loops. The identified circular business models vary in complexity of the circular supply chain and in the value proposition. Our research indicates circular business and circular supply chain help in realising sustainability ambitions.
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To aid companies in transitioning towards a circular economy and adopting strategies such as reuse, repair, and remanufacturing, the concept of circular business models has been developed. Although the concept draws on contributions from various academic disciplines, and despite its increasingly frequent use, few scholars clearly define what a circular business model is. Understanding about what makes a business model circular is diverse, hampering the theoretical development and practical application of circular business models. This study aims to help frame the field of circular business model research, by clarifying the fundamentals of the concept from the perspectives of resource efficiency and business model innovation. Expanding on these findings, a review of how the concept is used in recent academic literature is provided. It shows that a coherent view is lacking on which resource efficiency strategies classify a business model as circular. This study clarifies which resource efficiency strategies can be deemed as relevant key strategies for circular business models, and suggests a new definition of the concept. With the definition grounded in analysis of the fundamentals in terms of resource efficiency and business models, the study contributes to theoretical advancement and effective implementation of circular business models.
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