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Drivers and approaches to the circular economy in manufacturing firms
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.
... Responding to the call for understanding the external pressures for CE (Gusmerotti et al., 2019), our findings suggest that two or more mechanisms can interact and thus elicit both an individual firm response and an industry response. The findings suggest that companies within the same industry often move rather convergently when pursuing CE, yet certain EE mechanisms provoke novel packaging innovations and trigger new ventures. ...
... Several studies have focused on the drivers and barriers affecting CE (Caldera et al., 2019;Vermunt et al., 2019). Some research indicates the main drivers of an intention to implement CE are energy savings, environmental protection, financial incentives, and tax reductions; however, consumer demand (Kumar, Sezersan, Garza-Reyes, Gonzalez, & AL-Shboul, 2019) and regulatory pressure (Gusmerotti et al., 2019) appear less prominently. Other studies found profitability, market share, cost reduction and environmental concerns were the key drivers (Agyemang et al., 2019). ...
... Other studies found profitability, market share, cost reduction and environmental concerns were the key drivers (Agyemang et al., 2019). Nevertheless, economic drivers were the most influential motivators for linear companies to adopt circular business models (Gusmerotti et al., 2019). While going circular is closely connected with companies' environmental responsiveness, there are likely legislative and other stakeholder pressures beyond economics pushing companies toward CE (Bansal and Roth, 2000). ...
... They are similar in spirit, with a focus on conservation of resources and value creation. The LE model led to linear consumption patterns and disposable items in most of the world [15,19,41]. Now, because of the expanding population and the associated increase in consumer demand, all stakeholders and enterprises must employ sustainable practises to reduce environmental stress and respond urgently to the global existential crisis facing us. ...
... In a similar vein, Shao et al. [42] assert that businesses require a paradigm shift by "completing the loop" and recycling components as raw materials to manufacture new goods. According to the study of Gusmerotti et al. [19], CBMs can reduce the long-term downsides of linear manufacturing while also enhancing sustainability. Redesigning business models is not a simple operation because enterprises throughout the world and their supply chains are built on the same LE model [43][44][45]. ...
... To understand these various perspectives better, we have explored important influences for CBMs according to the relevant scholarly literature review articles on entrepreneurial viewpoints, as discussed in the following sections. In fact, entrepreneurs have different perspectives on the influences of CBM in relation to transition planning [19,25,26,28,47]. ...
The transition of a business to a circular business model (CBM) calls for significant and ongoing shifts in different business management models and strategies. However, there is a lack of research focused on the technological, financial, societal, and institutional influences on the CBM transition in small and/or medium-sized enterprises (SMEs). To address this gap, our study develops a theoretical framework for the transition towards CBM. We conducted a systematic literature review with the objective of determining the relationships among technological, financial, societal, and institutional influences for CBMs. Following this, we then established a conceptual framework that comprises these four key influences for a transition plan in the context of an innovative business model with a focus on the value proposition, value creation, and value delivery. An illustrative case example of the manufacturing industry for the transition plan to CBM was presented as well. The proposed framework is designed to lead the shift towards circular economy-oriented business models that aim to promote sustainability in business. In addition, we uncovered several potential avenues for further investigation. We expect the framework towards both contribute to the expansion of the existing body of research in the field and provide business practitioners with guidelines on the CBMs’ transition for SMEs.
... Specifically, it has been claimed that to adopt CE, the firm must transform the way it creates, delivers, and captures value (Frishammar and Parida, 2019). This involves transforming the business strategic approach to incorporate the principles of CE, along with new ways of configuring and executing the firm's operations to implement the organizational commitment toward circularity (Gusmerotti et al., 2019). Thus, "the implementation of circular economy principles often requires new visions and strategies" (Ferasso et al., 2020, p. 3007) and "a set of strategic decisions designed to preserve the embedded environmental and economic value of a product or service into the system" (Centobelli et al., 2021, p. 1,740). ...
... Thus, "the implementation of circular economy principles often requires new visions and strategies" (Ferasso et al., 2020, p. 3007) and "a set of strategic decisions designed to preserve the embedded environmental and economic value of a product or service into the system" (Centobelli et al., 2021, p. 1,740). From an operational perspective, in addition to meeting increasingly stringent regulatory constraints, CE entails significant challenges in terms of stakeholder management, resource management, product innovation, production management, and organizational structure (Gusmerotti et al., 2019;Heredia et al., 2022;Khan et al., 2022;Stewart and Niero, 2018;Tura et al., 2019). ...
... Bocken et al. (2016) identify two types of strategies for designing a circular product: (a) designing long-life products based on the concept of trust, reliability, and durability; (b) designing long-life extension, i.e., designing products to ensure that they are recyclable and/or biodegradable, easily repairable and maintainable, ready for disassembly and reassembly (and thus for adaptability and upgradeability), with readily available spare parts, and without programmed obsolescence (Khan et al., 2021;Zhang et al., 2021). The use of nonpolluting or nontoxic materials as a part of designing biodegradable packaging is equally important (Bag et al., 2021;Gusmerotti et al., 2019). ...
... The materials or parts that constitute a product must then be integrated in a CE strategy for reuse, redistribute, repair, refurbish, remanufacture, recycle, or ultimately recover its energy through incineration, depending on the EoL product's state upon return (van Buren et al., 2016). CE strategies contribute to reducing negative impacts on the environment, e.g. by reducing anthropogenic greenhouse gas emissions (Turner et al., 2020), increasing economic benefits (Gusmerotti et al., 2019), and generating positive social impacts (Madan Shankar et al., 2017). Within this context arises circular manufacturing (CM), which Takata (Takata, 2013) defines as a manufacturing system that considers the physical and functional state of products to satisfy users' requirements, based on the artifacts' diagnosis, restoration, upgrading, and delivery technologies through maintenance, reuse, and remanufacturing. ...
... Reverse Logistics (RL) close material loops by recovering used products (van Buren et al., 2016) and SAs close information loops of recovered PLCI, which is captured and analyzed to identify and manage the value-added of used products to support the BM (Asif et al., 2018). Finally, a BM integrates CE strategies into a company's business strategy in a synergetic way to achieve an effective, sustainable business model for value-added recovery of the used EoL products (Gusmerotti et al., 2019). Sustainability in manufacturing is becoming increasingly popular in society due to pressure from buyers and the global market (Moktadir et al., 2018). ...
... Although there is a clear interest on sustainability concerns, in practice its implementation is complex and the influence of economic criteria prevails over environmental and social interests (Alonso-Muñoz et al., 2021;Lieder et al., 2017). In fact, numerous companies seem to avoid recognizing and managing the tensions between environmental and economic objectives, and they tend to select environmental practices only when they generate economic benefits (Gusmerotti et al., 2019). Typically, CE implementations omit the consideration of social impacts and prioritize environmental and economic criteria (Tsalis et al., 2022). ...
Remanufacturing is a circular manufacturing (CM) strategy that emerges as a sustainable manufacturing approach to recover the value of end-of-life products. It is a challenging process that requires to overcome intrinsic remanufacturing barriers or challenges, while addressing sustainability concerns, and achieving business model (BM) objectives. The lack of product life cycle information (PLCI) is the main source of these issues, generating significant inefficiencies and negative impacts in CM operations. Smart and industry 4.0 (I4.0) technologies have the ability to recover, process, and analyze PLCI. In fact, research is ongoing and suggested approaches are focused on implementing CM strategies using I4.0 to address reverse logistic issues, and to develop new BMs for CM. However, questions remain about on how to structure and configure these technologies as a smart architecture (SA) that simultaneously addresses: 1) remanufacturing barriers and challenges; 2) sustainability; and 3) BMs in the context of CM. The present study addresses this question by conducting a systematic literature review (SLR) to discuss current approaches, identify challenges and opportunities, and to improve understanding of SAs for CM strategies. Based on these SLR findings, this study proposes a novel conceptual design of a SA for a sustainable manufacturing-remanufacturing system towards Industry 5.0. As well, the proposed SA covers novel elements, such as a sustainable stakeholders focus, a modular customizable structure integrated in BM, and a blockchain quality and remanufacturability certificate, that are typically omitted or only partially considered by other studies. Finally, a case study based on an electric motor is used to illustrate the relevance, capabilities, and utilization of the proposed architecture.
... The review shows that regulatory, normative, and cognitive rules are included, especially when elaborating on the potential barriers and drivers to transitions (Gusmerotti et al., 2019;Sarasini & Linder, 2018;. Among the problems related to regulatory rules are, for instance, blurry political strategies without clear definitions and priorities (Leipold & Petit-Boix, 2018), regulatory approaches missing sustainability orientation (Guldmann & Huulgaard, 2020), overly emphasized market competition (Rizos et al., 2016), and lack of supportive taxation policies and fiscal measures (Linder & Williander, 2017;Lopez et al., 2019;Sousa-Zomer et al., 2018). ...
... The importance of having a longterm overarching vision with clear goals concerning a circular economy, and the need to consider the drivers for, and constraints of building a circular future is highlighted (Mendoza et al., 2017). Strategic leadership by environmentally conscious leaders can be particularly helpful in setting directions towards the overarching visions (Gusmerotti et al., 2019;Sousa-Zomer et al., 2018). Moreover, the literature indicates that proper problem definition, increasing awareness of sustainability problems, and a common understanding of circular business models as promising solutions are crucial. ...
... Furthermore, the literature indicates a need for building strategies through the involvement of multiple actors and networks for changing unfavorable market conditions, creating market opportunities, and ensuring market viability (Jensen et al., 2019;Lopez et al., 2019). Some examples of shielding, nurturing, and empowerment strategies discussed in the literature are provisioning of financial support to new products (Nußholz et al., 2019), holding off selection pressures by introducing variance to dominant economic indicators in the existing markets (Gusmerotti et al., 2019), and reconstructing the existing market rules towards a more responsible consumption culture (Hopkinson et al., 2018). Through these continuous negotiation processes of political nature, firms can be motivated to get involved in circular business model innovation. ...
The concepts “circular business models” and “transitions towards a circular economy” have become modern‐day buzzwords. Yet, an understanding of the interplay between these two concepts remains unclear. This paper proposes a conceptual framework that illustrates the innovation mechanisms enhancing circular business models emerging within the context of transitions towards a circular economy. The paper follows a two‐step methodology. First, a theoretical framing is proposed by adopting insights from transitions studies. Second, a systematic literature review is employed. The review synthesizes the selected literature tracing the proposed framing in the previously published research. Finally, a transitions framework for circular business models is proposed. This framework suggests future lines of research to support its plausibility. Moreover, it offers prescriptive help to managers, entrepreneurs, policymakers, and other social actors enabling them to make informed decisions about and take innovative actions for circular business models in specific contexts.
... Some scientific papers have studied organizations' transition toward the CE. Moktadir et al., (2018) evaluated the key elements of the CE in the leather sector; Ranta et al. (2018) identified opportunities and barriers for the CE development in some industrial sectors in China, the USA, and Europe; Gusmerotti et al. (2019) analyzed the maturity level and key topics of the CE in 821 organizations; Agyemang et al. (2019) identified best practices and barriers to the CE implementation in Pakistan's automotive industry; and Upadhyay et al. (2021) evaluated the use of blockchain technologies to develop the CE. From these studies, this paper updates and expands the knowledge on the topic and proposes solutions for the sustainable development of companies and supply chains with CE implementation, this being a scientific gap identified in the literature (Merli et al. 2018;Agyemang et al. 2019). ...
... Next, the criterion was defined (Stage G) with the following string inserted only for title searches: "circular economy" and "development" or "implantation" or "case" or "experiences." These terms were chosen with the Phase 4 -Elaboration of the Conclusion intention of associating the main object of this work (CE) with theoretical or applied works that have proposals for the implementation and/or development of the CE (Gusmerotti et al. 2019). The language chosen was English, since it is the conventionally language used by the scientific community (Oliveira et al. 2019;da Rocha et al. 2022). ...
Stakeholders have been pressuring companies to develop more environmentally friendly strategic and operational solutions. In this sense, companies are seeking alternatives that reduce the negative impacts of organizational activities, Circular Economy (CE) is one of the solutions with the greatest potential for success. Thus, the goal of this paper is to provide drivers for organizations’ transition from a linear to a CE. For this reason, content analysis was used as the scientific method, for being appropriate for the interpretation of qualitative data and the identification, clustering, and systematization of themes in a given field of knowledge. In the case of this work, a set of 30 articles with information related to the implementation and development of CE were analyzed, allowing the identification of 19 key elements of CE. These key elements were then grouped and systematized into four drivers: decision-making; capacity and training; sustainable practices; and green supply chain. Scientifically, this work contributes to the improvement and increase of the block of knowledge about the CE, because the drivers can be used to advance the state of the art and as a starting point for the development of new research. In an applied way, the drivers proposed in this article provide a range of actions for managers to make their companies greener and improve their organizational performance, thus contributing environmentally and socially to the planet.
... In line with the relevant literature, this indicates that circular business models gain popularity in practice. Based on the assumption that public companies only pursue business models if they promise economic success [26], the growth also suggests that the majority of circular business models have become more attractive from an economic perspective. This may be related to new technologies, legislation, or increasing demand [60]. ...
... Since the prospect of economic value creation is the most important driver for companies to revise existing business models and implement circular ones [23,26], policy makers should use regulatory instruments that make the use of decelerating CBMs economically more attractive. These include, for example, extending or lengthening legally mandated product warranties [41] to encourage the production of long-lasting products. ...
In view of the rapid depletion of natural resources and the associated overloading of the biological ecosystem, the concept of circular business models (CBMs) is increasingly discussed in the literature as well as in business practice. CBMs have the potential to significantly reduce the demand for natural resources. Despite their increasing relevance, the diffusion of CBMs in business practice is largely unexplored. Consequently, this article investigates the extent to which CBMs have already been adopted by large German companies. To answer this question, the annual and sustainability reports of the members of the DAX40 are analyzed for the presence of five specific types of CBMs. Data was gathered for the years 2015 and 2020 in order to describe the development over time. The results show an increasing prevalence of CBMs in the DAX companies. In addition, it is noticeable that CBM types that serve to close material cycles are implemented more frequently than those that decelerate material cycles. In particular Sharing Platforms and Product as a Service stand out due to comparatively low adoption. Potential reasons for these findings are discussed and managerial as well as policy implications suggested.
... Improvements in existing energy models [17,23,28,41] and the creation of new methods for resource efficiency management using digital technologies were proposed in [22,28,37,44,[52][53][54][55]. Some authors suggested using equilibrium models [14,15,23,41], which meet the principles of a circular economy and sustainable development of production systems, in order to develop and make managerial decisions in the field of energy and resource conservation [1][2][3][4]19,20,47]. ...
... According to the authors, in the subsequent development of the resource and energy infrastructure of industries and regions, increasing the competitiveness of digital technology and economic security, such a task should be undertaken by commercial entities with the participation and control of public authorities [30,38,53,55]. In general, the determination of the effectiveness of industry or regional regulations of resource supply of FEC companies should be considered and controlled on the basis of two principles: ...
High-quality managerial decision-making is crucial for improving the resource efficiency of production companies in the context of digitalization. Currently, the use of modern methods and tools to manage the consumption and supply of resources of companies should consider the principles of a circular economy. This study focused on the development of a mechanism to manage resource efficiency in the fuel and energy sector. It used the methodological tools developed by the authors, including a comprehensive integral assessment of resource efficiency and a practice-oriented research methodology adapted for fuel and energy enterprises. Having analyzed the existing state of resource consumption, the authors discovered a disparity of indicators, methods and means in the applied assessment of the accounting, control and expenditure of energy resources. Using the analytic hierarchy process as a foundation, the authors applied a technique for identifying inefficient production processes at the fuel and energy enterprises level as a case study. With the proposed technique, the main areas of the inefficient use of resources were identified. They include the organization of accounting, control and rationing of resource consumption, supplying the resources to production, and measures to improve resource conservation. These areas were ranked by importance and priority. The calculations determined the most resource-intensive process—“Operation of equipment and technologies”. On this basis, the authors developed a methodology for resource efficiency management, including a number of digital technologies and tools. As a result of testing the developed mechanism in an oil and gas company based on the principles of a circular economy, the authors found reserves of the inefficient use of energy resources and searched for the best option for the development of an oil and gas company. Moreover, the proposed approach enabled the authors to determine the balanced growth of the company’s resource efficiency, develop managerial decisions for the its long-term development, and conduct its environmental and economic assessment.
... The literature on CE is extensive and growing, ranging from reports on green awareness (Liu and Bai, 2014) to the detailed study of the behavior of companies regarding the development of enablers (Gusmerotti et al., 2019) or inhibitors of EC (García-Quevedo et al., 2020). Progress has also been made in the study of business models (Scarpellini et al., 2020), the potential of technology (Jakhar et al., 2018) and the role of digital technologies in the implementation of CE (Gaustad et al., 2018). ...
... First, organizations generate a large proportion of waste, and while much of this waste is technically recyclable, it often cannot be properly collected or recycled because organizations are not connected to the proper systems (Antonopoulos et al., 2021). Second, managers are key to the adoption of circular recommendations, as their individual perceptions, attitudes, and values often influence the organization's strategic actions regarding CE, so managers intentions are the intentions of organizations (Daddi et al., 2019;Gusmerotti et al., 2019). ...
In emerging economies, Big Data (BD) analytics has become increasingly popular, particularly regarding the opportunities and expected benefits. Such analyzes have identified that the production and consumption of goods and services, while unavoidable, have proven to be unsustainable and inefficient. For this reason, the concept of the circular economy (CE) has emerged strongly as a sustainable approach that contributes to the eco-efficient use of resources. However, to develop a circular economy in DB environments, it is necessary to understand what factors influence the intention to accept its implementation. The main objective of this research was to assess the influence of attitudes, subjective norms, and perceived behavioral norms on the intention to adopt CE in BD-mediated environments. The methodology is quantitative, cross-sectional with a descriptive correlational approach, based on the theory of planned behavior and a Partial Least Squares Structural Equation Model (PLS-SEM). A total of 413 Colombian service SMEs participated in the study. The results show that managers' attitudes, subjective norms, and perceived norms of behavior positively influence the intentions of organizations to implement CB best practices. Furthermore, most organizations have positive intentions toward CE and that these intentions positively influence the adoption of DB; however, the lack of government support and cultural barriers are perceived as the main limitation for its adoption. The research leads to the conclusion that BD helps business and government develop strategies to move toward CE, and that there is a clear positive will and intent toward a more restorative and sustainable corporate strategy.
... Many researchers have recommended various approaches to encounter aforementioned challenges to transform the industrial sector into more eco-friendly industry. For example, circular economy is perceived as a good approach to reduce organizational conflicts between the economic prosperity and leaving a good impact on the environment, emphasizing the challenge to keep a business profitable and still leave a good environmental footprint [7]. Circular economy emphasizes on waste minimization as well as materials and resources optimization while maintaining them within the economy circle for much longer than expected; therefore, undoubtedly, the development process must be more sustainable [8]. ...
... It sets new channels of production that form a set of strategies focused on minimizing resource consumption, improving efficiency, and achieving waste reduction [31]. Furthermore, the circular economy paradigm intends to grant the circulation of resources within a closed loop, leading to the overall reduction of the need for new materials as inputs into production systems [7]. In addition, researchers and practitioners have recognized how the circular economy principles are producing entirely new and highly innovative business models, such as sharing platforms, remanufacturing, modular design, and circular supplies, which are radical and crucial approaches that profoundly transform the current market culture by adopting circular loops [6]. ...
In today’s business environment, contributions made by the manufacturing sector to the economy and social development is evident. With a focus on long-term development, the manufacturing sector has adopted advanced operating strategies, such as lean manufacturing, industry 4.0, and green practices in an integrated manner. The integrated impact of circular economy, industry 4.0, and lean manufacturing on sustainability performance has not been adequately addressed and investigated. Therefore, the aim of this study is to investigate the integrated impact of circular economy, industry 4.0, and lean manufacturing on the sustainability performance of organizations in Saudi Arabia. Data were collected through a questionnaire-based survey as a primary data instrument. A total of 486 organizations have responded to the survey within the timeframe. Moreover, the structural equation modeling method is utilized for data analysis through SmartPLS tool for the developed hypotheses of the research. The findings highlight the positive impact of circular economy on the sustainability of the organizations. Furthermore, the results indicate that industry 4.0 and lean manufacturing have positive mediating impacts as enablers for the successful implementation of circular economy toward the sustainable performance of organizations in Saudi Arabia. The study finding confirms that lean manufacturing is a substantial mediating variable that is essential for the successful implementation of industry 4.0 technologies. Moreover, the study indicates the recognition and acknowledgment of companies on circular economy principles, industry 4.0 technologies, and lean manufacturing tools to achieve the desired sustainability.
... Numerous studies have highlighted the importance of economic factors in determining CE practices. According to Gusmerotti et al. (2019), cluster analysis is used to examine the implementation level of CE practices, and logit regression is used to identify the most relevant factors to facilitate their implementation in the manufacturing industry; it is found that economic efficiency is the most important factor and CE practices simultaneously achieve environmental and financial benefits. In this section, we propose our hypotheses on the relationship between CE practices and firm performance and the effects of different aspects of CE practices. ...
... The search strings for CE and company performance were taken from previous studies. In particular, the CE search terms were drawn from literature reviews that provide sustainability-oriented definitions and cover all key terms (Liu and Bai, 2014;Gusmerotti et al., 2019;Ünal and Shao, 2019;Bartolacci et al., 2019;Wong et al., 2012;Batista et al., 2018). Keywords used as search strings can be seen in Table 1. ...
This paper aims to investigate the relationship between circular economy (CE) practices and enterprise performance based on existing empirical studies adopting a meta-analysis method. By systematically reviewing the literature, we identify 41 papers published on this topic between 2005 and 2021. The key finding supports that CE practice has benefited both firms’ commercial and ecological sustainability. The results also show that industry type, enterprise scale, and country have a moderating effect on the relationship between CE practices and sustainable performance. In addition, the results of this study can support managers to have greater confidence in adopting CE practices in order to improve both commercial and ecological performance. Further, this may be the first meta-analysis on this topic resolving the mixed results in the existing literature.
... (e.g.,Ormazabal et al., 2018;Gusmerotti et al., 2019;de Jesus & Mendonça, 2018). The key drivers and barriers are often related to a company's values and management, customer demand, tools and information, competition, existing regulations, and standards or certifi-cates, reflecting both internal and external factors. ...
... Although such values are an important starting point for action, the significance of environmental values decreases when it comes to specific decisions, as shown by, for example, Gusmerotti et al. (2019) and Cassells and Lewis (2011).Some drivers vary according to the size of the company, as for example, the importance of regulation. Regulation has been a focal driver for larger companies, whereas its role has been less evident with respect to micro companies(Bey et al., 2013;Gusmerotti et al., 2019;Salo et al., 2020). Larger companies often operate more broadly and are affected by different national and international regulations. ...
The European Parliament adopted the Circular Economy Action Plan in 2021, with which it identifies the importance of the design phase to improve products' circularity and environmental impacts. With an environmental design approach – ecodesign – companies can proactively reduce, avoid, or eliminate adverse environmental impacts that occur during the life cycle of a product. However, the practical implementation of ecodesign is not widely studied, hence, there is little evidence indicating a comprehensive or structured use of ecodesign in companies. Moreover, current policies are not considered as sufficient to promote the systematic use of the concept. This research studies company views on drivers and barriers of ecodesign, its practical implementation means, and compiles the most important development areas for the public sector to support ecodesign implementation in companies. Based on our study, the key drivers and barriers relate to company values, customer demand, tools, information, competition, regulations, and standards, reflecting both internal and external factors. With regard to implementation, ecodesign has been a systemic and continuous activity in companies, ranging from products and services to processes and marketing, but often with no dedicated resources. Subsequently, the key development areas for public policy are the establishment of stable and predictable regulations; provision of clear and structured information; provision of ecodesign tools supporting decision-making and which are easily available for different purposes and sectors. These mutually supportive areas are important for promoting ecodesign more systemically. In future policy actions, it would be important to further introduce interlinkages and synergies between various policy tools.
... The third driver is activated by institutions. Firms can be induced by governments' action, through norms or incentives, to look for greener choices, thereby reinforcing the market mechanism and the inevitable change in relative prices [23]. ...
In this essay, we reflect on the conditions that allow firms to play a leading role in the ecological transition process. The essay starts with an analysis of the technological and economic features of eco-efficient technologies. We argue that they are weak levers for the ecological transition. As eco-efficiency is based on profit-maximising goals, the pace of the transition is unlikely to peak quickly. In fact, this profit motive restrains firms from fully embedding ecological principles in their choices. Some behavioural concerns arise, as rationally bounded firms are likely to pursue uncomplicated and effortless pathways so as to safeguard profits. For instance, firms may pretend to be sustainable, while chasing opportunistic practices such as greenwashing, wokening, and cost shifting. Hence, they cannot lead the ecological transition process. A few consequences derive. First, new moral values must become pivotal criteria in firms’ decision-making processes. Second, such a big challenge must become shared and widely accepted in social discourse, so as to involve all economic actors and trigger a general process of institutional change. These are necessary conditions for the ensuing economic and social provisioning to take care of the limits of the Earth. Finally, we suggest that the teaching of economics must also be concerned with making such a change in mindset successful.
... Ref. [14] aimed to create a decision-support framework and key indicators to help with the development and selection of new innovative food packaging in the context of the CE. Ref. [134] highlighted many techniques focusing on different components of the value chain and provides insight into the level of adoption of CE principles in manufacturing enterprises that are members of the Italian national packaging consortium, which includes 900,000 packaging manufacturers and consumers. Furthermore, ref. [3] tried to map and critically examine ongoing SPSCM research activities and analyze the field's potential for development and expansion in CE, using an SLR technique. ...
The resilience of food systems is jeopardized by using food packaging materials that have adverse impacts on the environment, food quality, food safety, shelf-life, food loss, and waste. Therefore, a transition into a more sustainable system can only be possible by adopting circular economy principles and practices that can facilitate the elimination of unsustainable packaging, irresponsible disposal behaviors, and waste management. This paper mainly focuses on circular packaging practices in the existing literature to reveal the drivers of circular food packaging applications. The study also displays the triple combinations of material-sector, material-CE, and sector-CE principles. As a methodology, a systematic literature review (SLR) has been used for this study. Furthermore, this study investigates the literature findings, such as the most frequently mentioned food sector and sub-sector, CE principles, materials adopted for food packaging, and so on. The primary contribution of this study to the body of literature is the synthesis and mapping of the literature as a whole from the perspectives of CE principles, both sector-based and national, and the materials used through circular food packaging, and the attempt to facilitate this transition into a more circular system by outlining the drivers of circular food packaging.
... This can be explained by Daddi et al. [69] and Fischer and Pascucci [73], which noted that innovation policies can be more easily assimilated by firms through regulations and information. However, firms may face difficulties in accessing finance due to the complexity and administrative burden of the process, which can discourage them from seeking public financing [122], [123]. ...
The adoption of the circular economy (CE) requires new strategies and policies to help firms in their transition. Despite this need, research on how to articulate policies for the transition towards a CE is still in its early stages, and the findings are inconclusive and even discrepant, especially concerning the necessary financial support or policies to foster systemic circular innovation in firms. The aim of this research is to analyze the effect of institutional pressures in these two areas on the adoption of CE in firms. To do this, from a theoretical perspective, we combine institutional theory, particularly institutional complexity, with the dynamic capabilities approach. From a methodological point of view, along with classical econometric methods, artificial neural networks and regression trees are applied to analyze data from European firms. The results show, first, that policies to foster innovation and financial support help in the adoption of CE in firms, but its effect follows an inverted U shape. This indicates that the institutional pressures embodied in these policies reach a threshold and that beyond that point, an increase in institutional pressures deteriorates the development of CE in firms. Second, the results show that within the portfolio of institutional pressures considered, there is a positive effect of a greater diversity of policies on CE development in firms. Lastly, the results demonstrate that innovation policies, when combined with financial policies produce synergistic effects on the adoption of CE in firms, greater than those observed when financial support policies are employed in isolation.
... Gusmerotti et al. [41] suggest that only the availability of a robust and reliable supply chain network will ensure the growth of a circular business model. Unlike the linear business model where the raw materials are manufactured and supplied by several wellestablished companies, it is difficult to identify the waste suppliers located then and there in the circular business model. ...
The circular bioeconomy (CBE) practice concept has demonstrated its capability in improving the industry’s performance. However, the impact of CBE practice on sustainable industrial performance is less analysed due to a poor understanding of the connection between CBE practice and sustainability. This study aims to carry out a systematic literature review (SLR) to understand whether CBE practice has improved the industry’s sustainable performance. Also, this study aims to expose the industries that are less covered under the CBE practice concept. An SLR has been performed to identify peer-reviewed articles that evaluate the impact of CBE practice in industry’s sustainable performance. A total of 38 articles published between 2015 and 2021 were subjected to descriptive and content analysis to arrive at new findings, research gaps, and future research directions. The descriptive analysis revealed that most of the articles reviewed were focused on agro-based industries and developed countries. The content analysis highlights that the lack of understanding, limited technological and financial support, and a well-established reverse supply chain network restrict industries from adopting CBE practice. To improve CBE acceptance, technological assistance and a well-established supply chain network are required. This study contributes significantly to the literature by providing better insights into CBE practice. Unlike earlier studies which mainly emphasise the positive side, this study reveals the challenges faced by the industries in adopting CBE practice. Also, this study interprets the synergy between CBE practice and sustainability.
... Поэтому, несмотря на признание актуальности перехода к циркулярным бизнес-моделям в академических и экспертных кругах, на практике эта концепция пока не реализуется в полной мере. Исследования показывают, что большинство компаний продолжают работать по традиционным, а не циркулярным бизнес-моделям (Gusmerotti et al., 2019). Наряду с этим, дискуссионными остаются вопросы о том, что выступает драйверами и что -условиями, обеспечивающими переход к циркулярной экономике. ...
... This means that smart technologies (e.g., IoT, ICT, Bigdata, Blockchain, among others) can help in the transformation of waste management towards a CE, resulting in economic, social, and environmental opportunities for businesses (Dev et al., 2020;Fatimah et al., 2020). Indeed, economic opportunities are the main effective lever for companies to adopt the CE paradigm linked to I4.0 (Gusmerotti et al., 2019). However, companies are still hesitant and cautious about the technological revolution because of the risk associated with increased overheads, technological investment, and fewer short-term tangible financial benefits (Kouhizadeh et al., 2020). ...
The concept of circular economy (CE) has been a topic of interest for researchers, managers, and policy makers. It is recognised as the latest attempt to balance industrial development, environmental health, and economic growth. Although academic literature in this field has been gradually developing, it is limited in its analysis in terms of economic and competitive opportunity in the face of different strategies. This article provides a holistic view by mapping the literature on strategies-based EC for the economic competitiveness of companies through a systematic literature review supported on the co-citation bibliometric technique. To this end, 126 articles were selected and organised into 5 clusters: (i) strategic applications of CE; (ii) mediating factors for implementing CE strategies; (iii) drivers of CE strategies; (iv) determinants used to promote CE; and (v) emerging digital technologies used to enable CE practices. The results of this study help practitioners assess EC from a new point of view and design competitive strategies for a circular model without neglecting economic growth and competitive advantage, in addition to serving as crucial evidence for policymakers, helping them leverage policies to circumvent sustainability concerns and promote circularity. A future agenda for detailed cluster-based research is put forward based on the identified gaps, including a framework to help managers set priorities to escape the zero-profit trend associated with green and sustainable practices.
... Geissdoerfer, Vladimirova and Evans [5] suggest a holistic definition for a sustainable business model: "business models that incorporate pro-active multi-stakeholder management, the creation of monetary and non-monetary value for a broad range of stakeholders and hold a long-term perspective". Mapping this general definition onto the manufacturing industry, the notion calls for a shift in which EMs should evolve their business model from a linear production approach to a more circular one [10,11]. Manufacturing processes irreversibly exhaust finite materials and thus prevent organic regeneration. ...
Equipment manufacturers (EMs) exhibit unsustainable operating patterns in linear production models by depleting finite materials. In this context, future business environments in industrial markets shift fundamentally and form a new sustainability paradigm stimulated by key drivers, e.g., end customer behavior. Considering the market shift, this research explores an overview of prerequisites in the transition toward a sustainable business model in industrial markets. Prior research exhibited product life cycle extensions for industrial assets facilitated by the most common R-principles “reuse”, “remanufacture”, and “recycle”. Leaning on previous research, recycling is instrumentalized for some materials, e.g., polyethylene terephthalate (PET). For industrial assets, manufactured products, such implementation efforts for EMs fall short. Investigating the shortage, this study (1) scrutinizes the role of recycling in the transition towards a sustainable business model, (2) identifies appropriate characteristics of industrial assets facilitating recycling, and (3) evaluates parameters to operationalize a recycling value chain (RVC). In a practice-based project, involving a Swiss-based equipment manufacturing company, mixed methods are applied. The results propose key drivers and characteristics facilitating recycling efforts of industrial assets and parameters fostering an RVC. Future research should increase the number of sample EMs and scrutinize the role of various RVC actors to exceed present limitations.
... Ultimately, green design must balance market, environmental, and design elements to find effective solutions. Moreover, green design is primarily implemented in production facilities and businesses [11]. While it is a research approach based on product processing and practice, employing design methodologies and disciplinary perspectives, the fundamental theoretical research requires further exploration to solidify the underlying principles [12]. ...
This paper resulted from 1775 pieces of literature from the WoS database and 1923 from the CNKI database. The research framework, development process, internal relations, and key hot topics of green design were explored through the tool of CiteSpace metrology. Four main research results were presented: (1) Green design began to grow explosively around 2015. The design revolved around energy saving, material selection, and other aspects, with a high rate of cooperation, high reference, a large number of publications, and other upsurge phenomena in each branch of the formation. (2) There is the highest volume and popularity of research in the CNKI database. At the same time, in WoS, the United States still has the most disciplinary influence and academic exchange freedom. (3) WoS focuses on solving practical problems of branch disciplines, mainly chemical engineering, experiments, and case analyses. The hot topics in CNKI tend to be design subjects, mainly design technology, management, and theory. (4) There are few basic types of research on the WoS database; CNKI pays more attention to design theoretical research. The two databases form complementary solutions to ensure the future development of green design. The results indicate that green design should be envisioned as an eco-friendly approach, emphasizing optimizing human and management practices, innovative design principles, sustainable processes, and consideration of sociocultural impacts.
... The literature helps to integrate all desired aspects and design components in a single proposed model for its practicability under local conditions to strengthen Pakistan's future economic condition by prioritizing the sustainability of the waste sector. The proposed innovative municipal SWM business model [52] can support the improvement in the socio-economic conditions of sanitary workers in Pakistan. The sanitary workers collect the waste from each household as per business as usual (BAU), and rights/ownership of garbage will be entrusted to the workers in order for them to officially segregate the collected waste at the source level or the centralized enclosure located in the area. ...
Municipal solid waste (MSW) management is a global concern, especially in low–middle-income countries such as Pakistan, which require the redressal of MSW treatment issues to attain sustainability in the waste sector. The prosperity of municipal solid waste (MSW) collectors, i.e., the sanitary workers, is critical in the waste management hierarchy. Hence, the health, safety, social welfare, economic conditions and overall wellbeing of this tier need to be focused on more. Safeguarding the interests of the sanitary workers will support the MSW management sector in sustainability, which will help to generate revenue and minimize climatic impacts. An innovative MSW business model with waste ownership and technological intervention has excellent potential to support the sector towards a circular economy in Pakistan, the fifth most populous country in the world, generating about 100,000 metric tons of MSW per day. The proposed recycling business model will ensure a daily material recovery of 26,070 tons with 4721 tons of compost manufacturing in the country, which ultimately helps towards achieving the sustainable development goals (SDGs) and meeting the targets of nationally determined contributors (NDCs) by 2030. In addition, the sector’s economic potential can contribute 5.5% to the total annual budget and possibly pay 1.4% of the gross domestic product (GDP) per annum to service national foreign debt, thus helping maintain the debt threshold value with an opportunity to accelerate the economic growth of Pakistan.
... Academic literature extensively shows that the adoption of circular practices represents an important opportunity for changing the business model of organizations (Lewandowski, 2016;Lüdeke-Freund et al., 2019) by reducing their dependence on finite resources, lowering the environmental burden of their operations, and shortening the value chain (e.g., Gusmerotti et al., 2019;Barros et al., 2021;Lüdeke-Freund et al., 2019). ...
While the Circular Economy (CE) is considered a critical tool for addressing environmental degradation, its economic consequences have not received much attention yet. This study fills this gap by investigating the effect of CE strategies on key corporate profitability indicators, debt financing and stock market valuation. Our analysis focuses on a global sample of listed companies over the 2010-2019 period, which allows us to document how CE strategies have evolved over time and regions. To assess the impact of CE strategies on corporate financial measures, we construct multivariate regression models which incorporate a CE score to capture the overall corporate CE performance. We also analyze single CE strategies. Results suggest that implementing CE strategies improves economic returns and is rewarded by the stock market. Creditors, instead, started penalizing firms with worse CE performance only after 2015, the year of the Paris Agreement. Eco-design, take-back and recycling systems, and waste reduction strategies play a major role in increasing operational efficiency. These findings encourage companies and capital providers to direct investments toward CE implementation, with beneficial effects on the environment. From a policymaking perspective, they show that the CE can benefit not only the environment but also the economy.
... Indeed, previous studies like the Flash Eurobarometer 441 3 , mostly used countries' aggregated data (e.g. Hoogendoorn et al. 2015;Zamfir et al. 2017;Yadav et al. 2018;Gusmerotti et al. 2019;Bassi and Dias 2019;Katz-Gerro and López Sintas 2019;Ghisetti and Montresor 2020). The focus on Italy is crucially important since the literature underlines the high level of heterogeneity between different countries in terms of CE drivers (Zamfir et al. 2017;Bassi and Dias 2019;Katz-Gerro and López Sintas 2019). ...
The study investigates the determinants of the adoption of circular economy (CE) innovations in Italian manufacturing SMEs by using original data based on 4,042 firms for the 2017-2018 period. Results indicate that firms’ innovative efforts, size, export activity, management’s environmental awareness as well as the use of the digital innovation policy, Piano Industria 4.0, are factors that are positively correlated with the adoption of general CE innovations, showing heterogeneous results across different circular economy practices.
... The questionnaire was administered to both employees and managerial staff of the selected SMEs in the manufacturing sector. The selection of the manufacturing sector for data collection is a result of its contribution to the growth of the economy (Gusmerotti et al., 2019). The snowball method was used to help reach a target number of social media network participants. ...
The changing trend in the circular economy has pushed most firms to be competitive in their business activities using emerging technology. SMEs in recent times are increasingly leveraging technologies such as social media to enhance their interactions with their customers, increase their reach and become competitive. Despite this, SMEs in the manufacturing sector in developing economies are often underexplored in literature in their resolve to leverage social media to improve their performance and sustainability. This research explores the integration of social media in SME manufacturing firms’ activities toward their performance and sustainability in developing countries. Drawing on relevant literature and the social media engagement theory, we employed a questionnaire survey to collect data from 417 managers/staff of SME manufacturing firms in Ghana, using PLS-SEM techniques for the analysis. Research findings revealed that social media integration proved a direct positive correlation with SME manufacturing firms’ performance. Additionally, it was revealed that social media utilization has a positive and significant effect on SME manufacturing firms’ performance. The findings further show that social media usage assists SME firms’ performance and fosters their sustainability. It is concluded that SMEs should incorporate social media marketing strategies for firms’-customer relationships and internal and external collaboration. By implication, this study offers practitioners and researchers knowledge regarding social media integration among SMEs in emerging economies.
... In recent years, the concept of circular economy (CE) has become a paradigm (Bressanelli, Perona, and Saccani 2019) attracting scholars' interest (Urbinati, Chiaroni, and Chiesa 2017;Gusmerotti et al. 2019). However, the CE entered academic literature in 1966, with Kenneth E. Boulding, an ecological economist who criticized the 'cowboy economy' in favor of the 'spaceship economy', where all used resources are returned to the system (Boulding 1966;Ghisellini, Cialani, and Ulgiati 2016). ...
Among the various proposed models for practically developing a circular economy system, industrial symbiosis (IS) is one of the most promising. This paper aims at better understanding the extent to which regional industrial symbiosis practices have been internalized in companies and, second, at identifying the most important barriers that impede a company from the adoption of such practices at regional level. The research is grounded on original data collected using a questionnaire. The results allowed the division of firms into four clusters corresponding to different levels of adoption: (i) the perfectly symbiont companies that undertake all the proposed industrial symbiosis practices; (ii) the non-adopters that are low in terms of IS activities; (iii) the resource savers that focus on the use of by-products or waste from other companies; and the (iv) outbound activity optimizers that concentrate on the sale of their by-products and waste to other companies. Moreover, the results contributed to the identification of regulatory constraints and high investment costs and difficulties in finding financing as significant causes that hinder companies in the adoption of regional industrial symbiosis practices, while networking and logistic barriers appear not to be relevant. To overcome these barriers and to promote the adoption of IS at regional level, supporting the transition towards the circular paradigm, several political and managerial suggestions are proposed.
... That way adopting CE allows companies to improve their relationship with their customers and create customer loyalty (Agyemang, Kusi-Sarpong, Khan, Mani, Rehman & Kusi-Sarpong, 2019). It also increases consumer satisfaction (Gusmerotti, Testa, Corsini, Pretner & Iraldo, 2019), works with consumers on environmental matters (Jia et al., 2020), and increases their sales, especially among consumers who are aware of sustainability (Barbaritano et al., 2019). ...
Objetivo: Identificar drivers e barreiras percebidos pelos consumidores de produtos orgânicos em relação às suas ações em prol da circularidade. Referencial teórico: A economia circular (EC) é vista como solução para crise alimentar e poluição ambiental. Também contribui para crescente conscientização sobre responsabilidade social e sustentabilidade, enquanto aumenta o interesse por produtos orgânicos. Método: De forma qualitativa, doze consumidores de produtos orgânicos foram entrevistados por meio de entrevistas em profundidade on-line. Resultados e conclusão: Os consumidores identificaram uma série de drivers que os incentivam a fazer parte da EC, como diminuição do uso de embalagens nas feiras, oportunidade de fazer compostagem em casa e políticas governamentais que apoiam a coleta seletiva de resíduos para reciclagem. No entanto, a falha dos fornecedores em oferecer iniciativas de reutilização de embalagens, sacolas e de devolução de recipientes de vidro, restrições à compostagem domiciliar, falta de espaço para separar e descartar resíduos recicláveis de forma eficiente, não ter como reutilizar resíduos vegetais, e a não devolução de embalagens aos fornecedores, foram identificados como barreiras à EC. Implicações da pesquisa: Este estudo contribui para o desenvolvimento da EC, promoção da sustentabilidade e, estabelecimento da EC como elemento da produção orgânica. Originalidade/valor: Estudos tratam da EC com um foco maior para a indústria. Considerando a significativa importância do consumidor para o desenvolvimento da circularidade, este estudo avança com olhar para o consumidor, contribuindo para o entendimento, até então não investigados, da persepção dos consumidores de produtos orgânicos em relação às suas ações em prol da circularidade.
... Scott's (2008) framework of institutional theory advocates splitting institutions into three pillars-regulative, normative, and cultural-cognitive-that are independently distinguishable but interdependently provide the elasticity of the social structure. These pillars show throughout their indicators the rules, norms, and principles that influence social behavior and are replicated in actions, relationships, and resources in a specific ecosystem (Gusmerotti et al., 2019;Scott, 2008).These institutional rules are created by agency-based and unaware processes (Battilana, 2006). Generally, they appear to progress from the regulatory pillar, which includes mainly aware decisions, to the culturally cognitive pillar, which includes mainly unintentionally assumed decisions. ...
The study aims to analyze the role of informal institutions of Circular Economy (CE) as exogenous factors of improving the effectiveness of Benefit Corporation’ model. In detail, leveraging on the institution theoretical framework, it hypothesized that the level of entrepreneurial culture linked to CE at national level has a positive effect on the sustainability performance towards CE of Benefit Corporations. To this end, a sample of 301 Certified Benefit Corporations collected from the B-Lab dataset for the period 2008–2016 and located in eight European countries (Belgium, Denmark, France, Germany, Italy, Netherlands, Spain, United Kingdom) has been analysed. The findings show that the informal institutions englobed in the cultural dimensions of a country, with specific regard to the role of the entrepreneurial culture related to the CE, seems to actively stimulates the sustainability performance of Benefit Corporations towards CE, as measured through the B-Impact Assessment Score of the operated by B-Lab.
The study provides some important implications for theory and practice. Indeed, it contributes to the literature on institutional theory applied to CE, revealing the effective role of informal institutions for the development of circularity and sustainability performance at firm level in the entrepreneurial ecosystem. Also, the full achievement of the sustainability goals of Benefit Corporations passes also through their strongly commitment towards the CE principles. Further, the incorporation of a culture characterized by high entrepreneurial principles towards CE will likely push individuals to build an entrepreneurial mindset for the effective and sustainable development of Benefit Corporations.
... As promoting the shift to a CE demands considerable changes in the processes and activities of businesses (Marrucci et al. 2022) and might bring significant competitive benefits (Gusmerotti et al. 2019), there are crucial interaction points between absorptive capacity and circular economy. Therefore, AC may be pivotal in an organization's efforts to achieve sustainability and a circular economy. ...
Coupling the practice-based view (PBV) of firms with dynamic capabilities theory (DCT), we assess the effect of Fintech adoption (FA) on organizational sustainability performance (SP) through circular economy practices (CEP). Additionally, this research examines the moderating roles of a firm’s access to finance (AF) and absorptive capacity (AC) in the interplays between the constructs. 300 responses were collected from Bangladeshi manufacturing SMEs using a structured questionnaire. We examined our conceptual model using a two-staged structural equation modeling-artificial neural network (SEM-ANN) approach. The empirical findings unveiled that Fintech adoption significantly drives organizational CEP and SP and that CEP acts as a mediator between the FA and SP linkage. Furthermore, the findings also confirmed the moderating effect of AF on the FA and CEP association and the impact of AC on the CEP and SP association. Hence, this scholarship adds pivotal insights to the extant literature by establishing the roles of multiple mediators and moderators in the interplay of FA and firms’ SP. Given the paucity of primary-data-based research, this empirical study addresses the gaps in the Fintech, CE, and sustainability literature and yields crucial implications for theory and practice.
... Firstly, a shortlist of keywords has been selected after having drafted the first outline of publications on the topic [2,16,19,25,45,71]. The keywords selected at this stage were used to perform the papers selection using the following string: ...
The circular economy is an emerging paradigm with important economic, environmental, and societal implications. As the world faces such paradigm shifts, new and radical technologies are urgently needed to enable it; blockchain technology can assist to accomplish the aforementioned circular economy shift given its decentralization and distributiveness principles as well as its smart contract capability. This study represents one of the first attempts to analyze those academic research domains together adopting a science mapping technique. By adopting such approach, the study envisages research challenges, highlights important research gaps, and proposes future paths in the blockchain and circular economy fields. Among the others, key findings show that blockchain technology as a tool for promoting the circular economy has been extensively researched at the micro (i.e., firm) and meso levels (i.e., supply chain) more effort on how blockchain can support the development of circular smart cites and measurement tools for providing information to stakeholders and assisting in policy creation expresses the greatest potential in terms of novel research. Moreover, the research suggests that another possible stream of research might be dealing on how blockchain together with physical technologies (e.g., 3D printing, RFID), can support the transition towards the circular economy.
... Apesar dos benefícios apresentados na literatura, a transição do modelo linear para a economia circular está em um estágio embrionário, visto que as empresas que começaram a mudar suas rotinas ainda são minoria e a maior parte ainda mantém uma abordagem linear (GUSMEROTTI, et al., 2019). ...
Resumo A forma tradicional linear de produção, baseada em extrair, transformar e descartar está atingindo seus limites. A economia circular é apresentada como um modelo econômico para promover a transformação dos modos e práticas produtivas, com reaproveitamento de recursos e descarte nulo. Tendo em vista o desafio de migrar para um modelo sustentável e ao mesmo tempo economicamente viável, se faz necessário entender o que é a economia circular e de que forma a engenharia de produção pode contribuir para sua implementação. Neste sentido o presente trabalho apresenta os resultados de uma pesquisa bibliométrica destacando o que já foi publicado e os temas que têm sido abordados relacionados às áreas de abrangência da engenharia de produção e a economia circular. Os resultados permitiram verificar a evolução crescente na temática relacionada à economia circular no decorrer dos anos últimos anos.
Palavras-Chave: Economia Circular, Engenharia de Produção, Bibliometria.
... The study found that regulatory, normative and cultural-cognitive environments drive the implementation of CE practices. Among other factors, economic benefits, regulatory pressure, environmental awareness and supply risk in terms of scarcity in resource supply are determined to be essential for CE implementation (Gusmerotti et al., 2019). However, Liu and Bai (2014) noted that firms' awareness and understanding of CE practices and their value and willingness to adopt CE practices do not translate into enthusiastic behavior, suggesting the need for more effort toward improving CE practices. ...
Purpose
Circular economy (CE) practices are critical to achieving sustainable development goals. However, the recent global disruption caused by the COVID-19 pandemic has significantly impacted sustainable practices. The literature shows a significant research gap in analyzing factors that sustain CE practices in supply chains during a global disruption. This study fills the research gap by developing a mix-method approach to analyze factors for sustaining CE practices during a global disruption.
Design/methodology/approach
To fulfill the objectives of this study, the list of factors that sustain CE practices was first identified by conducting a literature review and finalized through an expert opinion survey. The survey finalized 18 different factors for sustaining CE practices. The finalized factors were further analyzed using the grey decision-making trial and evaluation laboratory (DEMATEL) method. The quantitative analysis confirmed the priority of the factors and their cause-and-effect relationships.
Findings
The results revealed that continued stakeholder pressure, retention of CE and sustainability culture, continued implementation of cleaner technology, feedback system and ongoing CE training for resilience issues are the top five factors that sustain CE practices during a global disruption. The study also revealed ten factors as belonging to the cause group and eight to the effect group.
Originality/value
This study contributes to the literature by exploring factors for sustaining CE practices during a global disruption. Moreover, the study’s findings are important in real-life situations, as decision-makers can use the findings to formulate strategies for sustaining CE practices during future global disruptions.
In recent years, increased attention has been paid to sustainability in manufacturing. The sustainability concept is fuzzy, however, which, according to previous studies, may hamper the changes needed to address the urgent challenges of global warming and reduced biodiversity. In this study, we aimed at investigating how companies in the maritime industry in North West Norway interpret and operationalize the sustainability concept. The study suggests that companies’ understandings and operationalizations of sustainability are linked to formal regulations, customer demand, and voluntary initiatives intended to gain legitimacy from stakeholders. Companies’ efforts to disclose information on sustainability performance have increased and supply chain sustainability initiatives are attracting attention, while the cluster organization developing a common vision of becoming a zero-emission industry. Among approaches to addressing sustainability issues, the focus on technology is dominant, which can be related to the industry-specific context. Other initiatives are largely in line with economic considerations. This study argues that more comprehensive changes are needed to address the two other dimensions of sustainability, to accelerate the transition towards sustainable manufacturing operations.
A Economia Circular (EC) vem ganhando espaço nos estudos acadêmicos e atenção na comunidade empresarial. Inseridos num contexto de crises, recursos escassos e contínuo aumento da população global, estudiosos e empresários são pressionados a encontrar novas abordagens para produção e consumo, rumo ao desenvolvimento sustentável. Num cenário de implementação da EC, torna-se importante a participação do consumidor para obter-se sucesso. Assim, o estudo objetivou identificar drivers e barreiras para a adoção da EC numa perspectiva do consumidor de produtos orgânicos. Foi conduzida uma revisão sistemática da literatura. Como resultado foram identificadas sete categorias de drivers e barreiras que podem impulsionar ou impedir a adoção da EC por parte do consumidor de produtos orgânicos: ambiental (sustentabilidade, meio ambiente, gestão dos resíduos, reciclagem); cadeia de suprimentos (conhecimento, engajamento, interesse na cadeia de suprimentos); informacional (informação, conhecimento sobre EC, compartilhamento das informações, aprendizagem, treinamento); mercado (conscientização, preferências, interesse e demanda dos consumidores); político-legal (leis, regulamentos, políticas públicas, conscientização pública); social (aspectos da sociedade e da comunidade, como geração de emprego, redução do desemprego, saúde pública, segurança, responsabilidade e consciência social), e tecnológico (ciência, tecnologia, inovação tecnológica, capacidade técnica). Os resultados deste estudo contribuem no desenvolvimento da EC no contexto da produção orgânica.
While the current share of global waste in developing countries is relatively small, it has peaked in momentum in recent years and continues to grow exponentially. In this chapter, we investigate the effect of macroeconomic performance on the progress towards a circular economy proxied by the recycling rate of recyclable waste in developing countries. To do so, we employ econometric methods and use historical data for 75 developing countries for the period spanning from 1995 to 2019. The findings from the empirical analysis reveal that an increase in real GDP is associated with an increase in recycling rates. However, the subsample analysis shows that the estimates are statistically insignificant for low-income countries, while they are significant for lower-middle-income and upper-middle-income countries. This suggests that the transition from a linear to a circular economy in low-income countries requires effective policies for waste management as the level of economic development is insufficient to yield a significant recycling performance.KeywordsCircular economyRecycling rateMacroeconomic performanceEconomic developmentSustainability
Purpose
The current study aimed to identify the impact of the dynamic capabilities on the circular economy in Jordan's small- and medium-sized manufacturing enterprises sector as and the mediating role of industrial Internet of things.
Design/methodology/approach
This study surveyed small and medium manufacturing enterprises operating in Jordan and collected 459 responses through an online self-administered questionnaire. The effects of dynamic capabilities and the industrial Internet of things on the circular economy were analyzed using covariance-based structural equation modeling (CB-SEM).
Findings
Empirical results showed that all hypotheses are accepted. The results also revealed that the relationship between dynamic capabilities (sensing, seizing and reconfiguring) on a circular economy is mediated by the industrial Internet of things.
Originality/value
This work expanded the application of the dynamic capabilities view to investigate the antecedent effects of the industrial Internet of things and the circular economy and deepened understanding of the dynamic capabilities view theory in assessing the dynamic activities of these firms based on the three dimensions of sensing, seizing and reconfiguring. In general, this study made a theoretical and managerial contribution to supply chain and circular economy literature.
This chapter discusses the role of business models as a catalyst for circular transformation. It starts with the conceptualization of circular business models before moving on to presenting several circular business model frameworks, as well as unifying strategies and circular economy principles. This chapter also outlines the enablers (or drivers) of and barriers to move towards circular business models.KeywordsCircular business modelCircular transformationDrivers and barriersProduct-Service SystemsResource cyclesStrategies
This chapter analyses the characteristics and adaptive features of small open economies; reviews and compares previous studies on circularity performance; and identifies drivers and barriers among small open economies and large economies in the European Union. Finally, it concludes with an assessment of circularity and economic performance of selected manufacturing industries in selected small open economies.KeywordsSmall open economiesCircular performanceEconomic performance
Circular economy is gaining traction in the construction industry, providing a responsible business model to decouple construction activities from excessive consumption of finite resources. This study conducted a systematic literature review to consolidate and conceptualize the factors that induce and enable construction organizations and stakeholders to adopt circular economy solutions in the construction industry. The analysis revealed eighty-eight drivers of circular economy adoption in the construction industry, clustered into eight dimensions, comprising knowledge, organizational, environmental, social, business, regulatory, technological, and supply chain drivers. The study further modelled the path dependencies and hierarchical structure of drivers of circular economy adoption in the construction industry. Thus, the findings provide a holistic insight into the factors inducing stakeholders to adopt a circular economy in the construction industry. The model can provide decision support to develop integrated policies and targeted interventions to facilitate a successful transition to a circular economy in the construction industry.
Purpose
This paper discloses the risk management response strategies and the perceived effectiveness of the strategies employed by companies operating within manufacturing clusters in Puerto Rico from 2016 until 2020, the second year of the coronavirus disease 2019 (COVID-19) pandemic.
Design/methodology/approach
The research design consists of questionnaire-based survey responses from companies belonging to manufacturing clusters, followed by semi-structured interviews and secondary sources of information.
Findings
The results reveal the risk responses used to manage specific risk types. Albeit respondents' dependency on an assortment of company-centric and cluster-bound risk response strategies, the perception is that the former is more effective when adequate local sources are available and the latter when the cluster has strong interconnectedness among the cluster's members.
Research limitations/implications
Furthermore, there is a generalized belief that long-term cluster-bound strategies are required to complement individual companies' overall risk management strategies.
Originality/value
This paper demonstrated that due to the volatility, uncertainty, complexity and ambiguity (VUCA) nature of the Caribbean region, mixed risk management might result in better and more favorable long-term performance.
The Covid-19 pandemic has exacerbated the environmental crisis in which our ecosystem is posed. In this context, the call to reorganize the production and consumption models to implement sustainable economic models is emerging. Accordingly, the Circular Economy paradigm, based on the reduction, reuse and recycling practices, has spurred as one of the best ways to manage this emergency state. The scientific literature has highlighted that, to shift from a traditional linear economic model to a circular economic one, the involvement of the whole supply chain is required, especially in the agri-food sector. In this perspective, the stakeholders’ engagement plays a pivotal role in reaching the global goal. The present research aims to explore the stakeholders’ perception of messages conveyed through social media on circular economy in agri-food, using a coding framework based on the reclassification of the “Glossary of Circular Economy” according to a 4-R paradigm (reduce, reuse, recycle and reduce). In particular, the study analyses the stakeholders’ reactions to Twitter posts focused on agri-food and circular economy from the beginning of the pandemic until now.KeywordsCircular economyAgri-food sectorStakeholder engagementSocial media
Sustainability is a strategic approach to develop a more sustainable economy to support the environment and socio-economic development. Literature on sustainability has been concerned mainly with global warming and environmental degradation issues, whereas the Circular Economy (CE) concept has recently been suggested as an alternative solution to support market sustainability and deal with both environmental and socio-economic challenges. In order to tackle these challenges, countries must switch from linear economies that follow the “take-make-dispose” principle to circular and sustainable economies. This study applies a structural and conceptual literature review to elucidate the most decisive determinants in the formation of circular strategies, particularly in the context of the energy sector. This study examines obstacles that hinder CE adoption and formulates drivers and measures to overcome them. The strategic literature review shows that the circular approach is critical in achieving sustainable development. Circularity can be considered a novel and innovative approach to alleviating the contradiction between rapid economic growth and energy and raw materials shortages. The CE structure must be considered as a sustainable foundation to enhance economic growth by avoiding waste, preserving natural capital, managing resource scarcity, recycling materials, maximizing energy efficiency, and recirculating them into the economy. Analysis reveals that the circular system is a key pillar of sustainability, security, and efficiency in the energy sector. The sustainable energy transition requires incorporating the CE principles in the design process. It also revealed that both public and private sectors must move away from the linear paradigm towards circularity to achieve CE implementation.
This study contributes in-depth knowledge of the circular supply chain and total resource management and highlights the primary circularity incentives and construction of circular resource management in the supply chain, especially in the context of the textile industry in Indonesia. Indonesia is the textile manufacturers and exporters of textiles and clothing worldwide; however, the implementation of circularity principles still encounters difficulties under uncertainties to achieve an effective circular supply chain. The objective is to obtain the causal interrelationships among the attributes in the circular supply chain and total resource management and to identify those that are to obtain better performance. The fuzzy Delphi method and the fuzzy decision-making trial and evaluation laboratory are employed. The results show that the valid theoretical framework consists of 20 criteria and seven aspects. The aspects identified are managerial strategies, environmental embellishment, and digital infrastructure. The practical criteria are including as follows (1) top management support, commitment, and clear vision, (2) eco-product and service design, (3) governmental rules and legislation for circular supply chains, (4) the adoption of new technology, and (5) the allocation of separate funds. The criteria provide practical directions for Indonesian textile firms and to strengthen their total resource utilization, thus improving circular supply chain performance.
The transition toward a circular economy (CE) implies the introduction of innovative practices at the firm level. Nevertheless, an important question is under discussion: What are the consequences of these practices on firm performance? Using a survey approach, this article analyzes the effect of CE practices related to product design on economic and environmental performance: life cycle assessment (LCA), product upgradability, and design for disassembly, reuse, and recycling in a sample of 300 firms. Our findings show that, although most of the companies are carrying out some eco‐innovation (innovations aimed to reduce the environmental damage of their activity), only process eco‐innovations new to the market improve economic performance but not environmental performance. However, LCA is a tool for implementing CE principles, helping to improve both. Eco‐design is positively associated with economic performance. The results provide managers and policy makers new insights on the long road to achieving this transition.
This two-volume set, IFIP AICT 663 and 664, constitutes the thoroughly refereed proceedings of the International IFIP WG 5.7 Conference on Advances in Production Management Systems, APMS 2022, held in Gyeongju, South Korea in September 2022.
The 139 full papers presented in these volumes were carefully reviewed and selected from a total of 153 submissions. The papers of APMS 2022 are organized into two parts. The topics of special interest in the first part included: AI & Data-driven Production Management; Smart Manufacturing & Industry 4.0; Simulation & Model-driven Production Management; Service Systems Design, Engineering & Management; Industrial Digital Transformation; Sustainable Production Management; and Digital Supply Networks. The second part included the following subjects: Development of Circular Business Solutions and Product-Service Systems through Digital Twins; “Farm-to-Fork” Production Management in Food Supply Chains; Urban Mobility and City Logistics; Digital Transformation Approaches in Production Management; Smart Supply Chain and Production in Society 5.0 Era; Service and Operations Management in the Context of Digitally-enabled Product-Service Systems; Sustainable and Digital Servitization; Manufacturing Models and Practices for Eco-Efficient, Circular and Regenerative Industrial Systems; Cognitive and Autonomous AI in Manufacturing and Supply Chains; Operators 4.0 and Human-Technology Integration in Smart Manufacturing and Logistics Environments; Cyber-Physical Systems for Smart Assembly and Logistics in Automotive Industry; and Trends, Challenges and Applications of Digital Lean Paradigm.
Circular economy (CE) implementation requires the transition from linear business models (BMs) to circular ones, with related uncertainties and multi-disciplinary risks, which often discourage organisations. However, there is still a lack of understanding of risks associated with this process. This work thus aims to identify, classify and prioritise key risk factors for innovative circular BMs in order to enable the development of appropriate risk management strategies.
A fuzzy Delphi method was tailored to assess the risk factors obtained from the literature and was applied to the industrial case of composite materials. 24 major risk factors for innovative circular BMs were identified and classified into six categories. The probability and impact of the risk factors were evaluated by experts and the risk factors were then ranked by calculating their risk scores. The resultant major risks appeared to be related to the external context in which organisations operate. Among those risks, the greatest were those generated by take-back systems and low customers’ acceptance of CE products.
This research is the first to address risks for circularity in a structured way and contributes to the field of CE by providing an extensive list and classification of risk factors for innovative circular BMs as they are perceived by industry, acting as a reference for academics and practitioners. Furthermore, it provides the first evaluation and prioritisation of risk factors within the CE domain, highlighting critical risks within the specific industrial context of composite materials and suggesting action priorities for the establishment of circular BMs.
We are living on a finite planet. Humankind is overstepping planetary boundaries, however. In 2021, worldwide consumption has exceeded the yearly bio-capacity of the Earth (what we call the overshoot day) on the 29th of July. For industrialised countries, the situation is far worse: In 2022, Belgium reached that overshoot day on the 26th of March. In the face of these urgent challenges of sustainable resource use, there is wide agreement on the need for a transition, a fundamental societal shift, towards, amongst others, a circular economy (CE), the focus of this book. The book speaks deliberately of transitioning. This marks our focus on transition processes and activities. Discussions of ‘the transition’ easily get stuck in abstract visions, remote future goals and ideological statements about the desired world of tomorrow. By contrast, much more attention needs to be paid to concrete transformation processes that could lead towards these projected futures. Transition how? Where to? By whom? We highlight that companies are key actors in CE transitioning. This edited volume presents key outcomes from the “Transitioning Belgian companies into circularity” research chair, established by Belgian Employers’ Federation FEB/VBO. Whilst focusing on the role of companies, we show how the private sector cannot bring about such societal transformations single-handedly. We consider companies as embedded transition agents, i.e. as actors that operate as parts of broader business ecosystems.
Research on Circular Business Models (CBM) supports companies in changing the business paradigm from linear to circular. The field of research on business models for CE is in a phase of maturation and consolidation, as several publications on the CBM topic have grown exponentially in the databases. However, little research has been carried out in Brazil to investigate how companies are applying EC principles in their business practices, what business models are adopted, and the value achieved. Thus, this study aims to contribute to knowledge about the adoption of CBM in Brazil, identifying the models adopted and which enabling elements are inducing and facilitating the transition. This research is exploratory, based on qualitative data, having as a research method the study of multiple cases carried out in five large manufacturing companies installed in an industrial park in northern Brazil, which are introducing the principles of CE in the form of doing business and achieving economic and environmental results. The survey results show that the companies surveyed are diversifying their business model towards models that slow down or close the production loop in a hybrid way (linear and circular), revealing that the creation of ecological value has been greater than the economic value. The role of several enabling elements was observed, but innovation is one of the main enablers for circularity and the creation of more sustainable organizations.
The concept of circular business models has been identified as an important enabler for companies
moving towards circular practices. Circular business models help to prolong lifetimes of products and
parts through successive cycles of reuse, repair, remanufacturing and closing material loops. To realise
economic viability and reductions in environmental impacts from innovating towards a circular business
model, integrated planning of the product lifecycle and value creation architectures for each cycle is
pivotal. One key approach used to support business model innovation in management studies has been
the visualisation of business models. Visual representations reduce complexity and reveal tacit structures
to help understand and communicate the business model, generate and develop new business model
ideas, and remove obstacles to innovation. However, for circular business models, there are no visualisation
tools that help plan the product lifecycle in a way that creates and captures value from multiple
use cycles and closed material loops, and that can capture how business model elements are adjusted to
effectively implement each cycle. This paper presents a visualisation tool to map circular business models.
The tool offers a standardised representation of the elements and possible cycles of circular business
models to prolong the useful life of products and parts, and close material loops. A pilot case based on the
company Fairphone exemplifies various potential benefits, including the tool's ability to reduce
complexity and order potential interventions for embedding circularity in the business model. Suggestions
for future research are made to refine and test the tool.
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.
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.
The circular economy requires companies to rethink their supply chains and business models. Several frameworks found in the academic and practitioner literature propose circular economy business models (CEBMs) to redefine how companies create value while adhering to circular economy principles. A review of these frameworks shows that some models are frequently discussed, some are framework-specific, and some use a different wording to refer to similar CEBMs, pointing to the need to consolidate the current state of the art. We conduct a morphological analysis of 26 current CEBMs from the literature, which includes defining their major business model dimensions and identifying the specific characteristics of these dimensions. Based on this analysis, we identify a broad range of business model design options and propose six major CEBM patterns with the potential to support the closing of resource flows: repair and maintenance, reuse and redistribution, refurbishment and remanufacturing, recycling, cascading and repurposing, and organic feedstock business model patterns. We also discuss different design strategies to support the development of these CEBMs.
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.
This article is available open access under: http://dx.doi.org/10.1007/s00170-017-0610-9
The recent circular economy movement has raised awareness and interest about untapped environmental and economic potential in the manufacturing industry. One of the crucial aspects in the implementation of circular or closed-loop manufacturing approach is the design of circular products. While it is obvious that three post-use strategies, i.e. reuse, remanufacturing and recycling, are highly relevant to achieve loop closure, it is enormously challenging to choose ‘the right’ strategy (if at all) during the early design stage and especially at the single component level. One reason is that economic and environmental impacts of adapting these strategies are not explicit as they vary depending on the chosen business model and associated supply chains. In this scenario decision support is essential to motivate adaptation of regenerative design strategies.
Main purpose of this paper is to provide reliable decision support at the intersection of multiple lifecycle design and business models in the circular economy context to identify effects on cost and CO2 emissions. The development of this work consists of a systematic method to quantify design effort for different circular design options through a multi-method simulation approach. The simulation model combines an agent-based product architecture and a discrete event closed-loop supply chain model.
Feasibility of the model is tested using a case of a washing machine provided by Groenje d.d. Firstly, design efforts for reuse, remanufacturing and recycling are quantified. Secondly, cost and emissions of different design options are explored with different business model configurations. Finally, an optimization experiment is run to identify the most cost effective combination of reused, remanufactured and recycled components for a business model chosen on the basis of the explorative study results.
This article has open access under:
http://dx.doi.org/10.1007/s10458-017-9365-9
Abstract:
This paper introduces an agent-based approach to study customer behavior in terms of their acceptance of new business models in Circular Economy (CE) context. In a CE customers are perceived as integral part of the business and therefore customer acceptance of new business models becomes crucial as it determines the successful implementation of CE. However, tools or methods are missing to capture customer behavior to assess how customers will react if an organization introduces a new business model such as leasing or functional sales. The purpose of this research is to bring forward a quantitative analysis tool for identifying proper marketing and pricing strategies to obtain best fit demand behavior for the chosen new business model. This tool will support decision makers in determining the impact of introducing new (circular) business models. The model has been developed using an agent-based modeling approach which delivers results based on socio-demographic factors of a population and customers’ relative preferences of product attributes price, environmental friendliness and service-orientation. The implementation of the model has been tested using the practical business example of a washing machine. This research presents the first agent-based tool that can assess customer behavior and determine whether introduction of new business models will be accepted or not and how customer acceptance can be influenced to accelerate CE implementation. The tool integrates socio-demographic factors, product utility functions, social network structures and inter-agent communication in order to comprehensively describe behavior on individual customer level. In addition to the tool itself the results of this research indicates the need for systematic marketing strategies which emphasize CE value propositions in order to accelerate customer acceptance and shorten the transition time from linear to circular. Agent-based models are emphasized as highly capable to fill the gap between diffusion-based penetration of information and resulting behavior in the form of purchase decisions.
Assessing product circularity performance is not straightforward. Meanwhile, it gains increasingly importance for businesses and industrial practitioners who are willing to effectively take benefits from circular economy promises. Thus, providing methods and tools to evaluate then enhance product performance—in the light of circular economy—becomes a significant but still barely addressed topic. Following a joint agreement on the need to measure product circularity performance, this paper provides an overview of mechanisms aiming to help industrial practitioners in this task. In fact, three existing approaches to measure product circularity performance have been tested on an industrial case study and criticized regarding both their applicability in industry and their accordance with circular economy principles. Although these methods and tools deliver a first and rapid trend of product circularity performance, the whole complexity of circular economy paradigm is far from being considered. In addition, operational guidance for engineers, designers or managers to improve their products in a circular economy context are missing. As a result, both recommendations for industrial practitioners and guidelines for the design and development of new frameworks, tools and indicators aiming at measuring product circularity performance are provided. This includes cornerstones, key requirements and practical implications to support enhanced circularity measurement that will be developed in further work, accordingly to circular economy paradigm and industrial reality.
While the terms Circular Economy and sustainability are increasingly gaining traction with academia, industry, and policymakers, the similarities and differences between both concepts remain ambiguous. The relationship between the concepts is not made explicit in literature, which is blurring their conceptual contours and constrains the efficacy of using the approaches in research and practice. This research addresses this gap and aims to provide conceptual clarity by distinguishing the terms and synthesising the different types of relationships between them. We conducted an extensive literature review, employing bibliometric analysis and snowballing techniques to investigate the state of the art in the field and synthesise the similarities, differences and relationships between both terms. We identified eight different relationship types in the literature and illustrated the most evident similarities and differences between both concepts.
The transition within business from a linear to a circular economy brings with it a range of practical challenges for companies. The following question is addressed: What are the product design and business model strategies for companies that want to move to a circular economy model? This paper develops a framework of strategies to guide designers and business strategists in the move from a linear to a circular economy. Building on Stahel, the terminology of slowing, closing, and narrowing resource loops is introduced. A list of product design strategies, business model strategies, and examples for key decision-makers in businesses is introduced, to facilitate the move to a circular economy. This framework also opens up a future research agenda for the circular economy.
While prior literature has emphasized that stakeholders can influence a firm's decision to adopt environmental practices that lead to competitive advantage, most scholarship has assumed that stakeholders influence the design of firms' environmental practices similarly. We challenge this notion and suggest that stakeholders affect not only the decision to adopt environmental practices, but also managerial decisions about the design of these practices. We consider the case of firms' strategic decisions about the design of their environmental practices, and in particular their degree of comprehensiveness and visibility. We then develop a classification of four design strategies: movers and shakers, backroom operators, wannabes, and passivists. Using multinomial regression techniques for a sample of more than 1700 firms worldwide, our research shows that while stakeholders exert pressures on firms, managers' perceptions of these pressures vary, and these variations appear to influence the design of their environmental practices. These findings offer important evidence that the scope of stakeholders' influence appears more far reaching (and nuanced) than previously considered. Managers who respond to these influences may therefore be in a better position to satisfy stakeholder expectations, thus enhancing their organization's overall credibility.
Driven by recent socio-economic developments, manufacturing firms increasingly adapt their business models along two dimensions. Apart from vertically integrating the entire product life cycle, traditionally separated tasks are re-allocated into new forms of horizontal stakeholder collaborations. Incorporating these two dimensions, this article develops a framework of nine business model archetypes that holistically capture the increasing openness of business models towards consumers in the emerging closed-loop value chain. Using illustrative examples, it demonstrates their broad applicability in different industries and derives important managerial implications for firm-consumer relationships, the relevance of consumer communities, new product development activities, and the sustainability of business models.
Switching from the current linear model of economy to a circular one has recently attracted increased attention from major global companies e.g., Google, Unilever, Renault, and policymakers attending the World Economic Forum. The reasons for this are the huge financial, social and environmental benefits. However, the global shift from one model of economy to another also concerns smaller companies on a micro-level. Thus, comprehensive knowledge on designing circular business models is needed to stimulate and foster implementation of the circular economy. Existing business models for the circular economy have limited transferability and there is no comprehensive framework supporting every kind of company in designing a circular business model. This study employs a literature review to identify and classify the circular economy characteristics according to a business model structure. The investigation in the eight sub-domains of research on circular business models was used to redefine the components of the business model canvas in the context of the circular economy. Two new components-the take-back system and adoption factors-have been identified, thereby leading to the conceptualization of an extended framework for the circular business model canvas. Additionally, the triple fit challenge has been recognized as an enabler of the transition towards a circular business model. Some directions for further research have been outlined, as well.
The main objective of this paper is to analyze the determinants underlying the internalization of proactive environmental management proposed by certifiable environmental management systems (EMS) such as those foreseen by ISO 14001 and EMAS (the European Management and Auditing Scheme). Using a study based on 232 usable questionnaires from EMAS-registered organizations, we explored the influence of institutional pressures from different stakeholders and the role of corporate strategy in the “substantial” versus “symbolic” integration of environmental practices. The results highlighted that although institutional pressures generally strengthen the internalization of proactive environmental practices, the influence of stakeholders can either support the integration of these practices or encourage their superficial adoption. For example, while pressures from suppliers and shareholders contribute to corporate greening, pressures from customers and industrial associations tend to encourage greenwashing (i.e. the superficial and misleading adoption of environmental practices). Product quality -oriented strategies also positively influence EMS internalization. The paper sheds light on the institutional complexity underlying the substantial versus symbolic implementation of environmental practices, and questions the dominant isomorphic view of EMS adoption. The paper also bridges the gap between complementary approaches on corporate greening, notably neo-institutional and stakeholder theories.
Keywords: environmental management system; environmental strategy; greenwashing; institutional complexity; stakeholders
The intermeshing of disciplines from the natural sciences, social sciences, engineering and management has become essential to addressing today's environmental challenges. Yet, this can be a daunting task because experts from different disciplines may conceptualize the problems in very different ways and use vocabularies that may not be well understood by one another. This paper explores three alternative environmental concepts used in transdisciplinary research, and outlines some of the epistemological and practical problems that each one poses. It pays particular attention to the increasingly popular concept of "circular economy", and contrasts it with the more commonly-used concepts of "environmental sciences" and "sustainable development". In clarifying the nature, meaning and inter-relationship of these alternative concepts, the paper helps trans-disciplinary researchers to understand the opportunities and challenges associated with each one.
Circular business models based on remanufacturing and reuse promise significant cost savings as well as radical reductions in environmental impact. Variants of such business models have been suggested for decades, and there are notable success stories such as the Xerox product–service offering based on photocopiers that are remanufactured. Still, we are not seeing widespread adoption in industry. This paper examines causes for reluctance. Drawing on a hypothesis-testing framework of business model innovation, we show that circular business models imply significant challenges to proactive uncertainty reduction for the entrepreneur. Moreover, we show that many product–service system variants that facilitate return flow control in circular business models further aggravate the potential negative effects of failed uncertainty reduction because of increased capital commitments. Through a longitudinal action research study we also provide a counterexample to many of the challenges identified in previous studies, which could be overcome in the studied case.
As circular economy and sustainability gain greater attention of governments, industry and academia, business model innovation for circularity and/or sustainability is becoming fundamental to sustain companies’ competitive advantage. A variety of business model innovation approaches have been proposed to suit circular economy or sustainability principles. Although they largely have been addressed independently as two separate knowledge areas, there is an opportunity to seize synergies from the intersection of both streams. This paper provides a review of approaches for business model innovation for circular economy and/or sustainability, based on a systematic review of academic literature and practitioner-based methodologies. The systematic literature review identified 94 publications and 92 approaches (including conceptual models, methods or tools). The different approaches were categorized according to the business model innovation process, following a three stage dynamic capability view. Subsequently they were compared based on five characteristics (nature of data, boundaries of analysis, level of abstraction, time-based view, and representation style), to allow for a better understanding of how to use the approaches in research and practice. Based on the review, key findings outlining trends and a reflection about the interface of the scopes of circular economy-oriented and sustainability-oriented business model innovation are presented. Moreover, a number of gaps are identified and a framework that maps a future research agenda to simultaneously advance both streams is outlined.
Given the complexity of circular economy implementation, the literature is missing a strategic standpoint. This paper investigates the taxonomy of circular economy implementation strategies at the managerial level by linking it to strategy literature. The taxonomy was developed by using standard k-mean clustering method that incorporates 391 Cradle-to-Cradle product scorecards of 187 companies from 10 different industries. The analysis was based on the relative importance assigned to each competitive capability that defines the circular economy; namely, material health, material reutilization, renewable energy, water stewardship, and social fairness. Three distinct clusters of circular economy implementation strategy groups were observed: (i) founding (recyclers), (ii) development (all-decent circulars), and (iii) maturity (toxicity fighters). All clusters have been present in various industries, although there is an industry effect. The results indicate that each cluster has a different strategy. The results obtained contradict the general assumption and expectation of simultaneous improvement at all circular economy dimensions. Our research contributes to the theoretical understanding of circular economy implementation by providing a taxonomy of strategies. It contributes to the strategy literature by suggesting that the maturity degree of a competitive capability may determine the implementation strategy. For practice, the study presents a road-map for managers to reach higher degrees of circularity.
Circular economy increasingly attracts the interest of business, policy makers and academia in the search for answers to sustainability challenges. While earlier studies have presented drivers that support the introduction of new business concepts for circular economy, as well as barriers that hinder the rate of innovation in the field, no systematic categorizations of such factors have been brought forward. Drawing on current literature, a framework of drivers and barriers is introduced, including seven distinct areas: environmental, economic, social, political and institutional, technological and informational, supply chain, and organizational factors. The appearance and content of these areas in practice have been examined in four case organizations by conducting thirty-six qualitative, semi-structured interviews. Empirical illustrations of the potential barriers and drivers provide managerial implications for better execution of circular business.
Reduced product lifespan results in accelerated flow of materials and ultimately more waste. Rapid technology cycles, frequently changing consumer preferences and increasing market competition, provide consumers with an opportunity to use products with more functions and better quality at a cheaper price. Consequently, these products quickly become technologically, psychologically, or economically obsolete even before the actual end of their physical life/economic value resulting in shorter product life cycles. These products are often disposed as landfill. In this context, it can be argued that reduced product lifespan has a significant impact toward, both the environment and the economy. To address this issue, our study investigates the concept of upgradability while exploring its potential as a product lifetime extension strategy. Several research papers regarding product upgradability have been published in the past in a variety of settings/domains. However, the collective contributions of these papers have yet to be summarized in order to provide a platform of knowledge for furthering the research on upgradability. To contribute to the body of knowledge, this article aims to identify, interpret, and summarize the current literature available on product upgradability. First results indicate growing interest and promising potential of upgradability as a product lifetime extension strategy, especially given the increasing importance of a product's middle of life phase in the context of Product-Service Systems (PSS). Additionally, upgradability facilitates the implementation of the circular economy, the dissemination of PSS, as well as remanufacturing approaches. However, our findings show that research on upgradable PSS is still dominated by theoretical work and more empirical research is necessary to further establish this concept. In terms of future work, there is a clear need to develop upgradeable PSS-specific design methodologies as well as associated sustainable business models.
This paper analyses 143 cases about the implementation of various and often interlinked, integrative, Resource Efficiency Measures (REMs). These REMs have been brought in a framework distinguishing on the one hand a cluster of supply side measures, demand side measures and life cycle measures with a synergistic mode of operation. They further have been related to clear classes or Business Model Changes (BMCs) that can support their implementation, notably changes in the supply chain (SC), internal processes (IP), customer interface (CI), financial model (FM) and the value proposition (VP). The BMCs were further characterised in terms of typical Implementation Barriers (IBs) that were reported in the cases, i.e. institutional, market, organisational, behavioural and technological barriers. Our study could not confirm some common theoretical wisdom, such as that firms mainly focus on ‘simple’ REMs like cleaner production and green products. Indeed, we could not confirm that REMs with a high scope and degree of change, often perceived as complex to implement, faced more Implementation Barriers than others. In general most Implementation Barriers play a role in all types of REMs and BMCs, although also some weak patterns were found. Internal processes BMCs were mainly hampered by institutional and technological factors. Value proposition and Financial model BMCs faced mainly behavioural and market barriers. Customer interface BMCs encountered additionally organisational barriers, while supply chain BMCs face a mix of all classes of barriers distinguished in this study. This is one of the first studies on business models and resource-efficiency looking at a large set of cases which is a step forward from the single case studies that dominate current literature. Yet, follow-up research should overcome weaknesses in our approach, such as a possible bias towards success cases and be more quantitative in analysing the effort it takes to overcome IBs.
This article presents an in-depth case study detailing the history, experiences, and wider practitioner and policy lessons from a circular economy business model over a 30-year period, highlighting the successes, difficulties, and conflicts of adopting a circular economy model. The case is based on interviews, key documents, and customer insight. The findings demonstrate how sustained circular economy business practices can deliver significant new revenues, resource productivity, and business continuity benefits, but also require managers and practitioners to develop competencies and capabilities, such as balancing linear and circular systems, to address complex and highly dynamic factors, including rapid technological shifts and market volatility.
Remanufacturing is the industrial process of returning used or worn-out products to a new functional state and has been developed in China within the framework of the circular economy. Due to the recent mass production and use of construction machinery in China, there will be a huge remanufacturing potential in coming years. In this paper we take the loading machine as a case study, and use life cycle analysis to compare the environmental impacts and cost of a manufactured loading machine (S1) with its remanufactured counterparts under two return-back scenarios: remanufacturing at the original factory (S2) and at regional dealers (S3). A life distribution model was used to estimate loading machine scrappage. The results showed that climate change effects in S1, S2 and S3 were 4.4 t, 1.3 t, 0.92 t CO2-eq respectively. The financial cost in S2 and S3 was 48% and 35% respectively of the cost in S1. S3 achieves an efficient closed-loop and had the best environment and economic benefits. Carbon reduction resulting from remanufacturing is expected to peak in 2020 and 2039, and if the recycling rate is increased from 25% to 60%, the maximum CO2-eq reduction will increase by 351 million tons. Remanufacturing should play a vital role in urban carbon reduction strategies, and enterprises are capable of implementing remanufacturing through technical innovation. The quantitative environmental and economic analysis also enables remanufacturers and consumers in the market to make informed decisions.
Since the industrial revolution, we have been living in a linear economy. Our consumer and “single use” lifestyles have made the planet a “take, make, dispose” world. This refers to a unidirectional model of production: natural resources provide our factory inputs, which are then used to create mass-produced goods to be purchased and, typically, disposed after a single use. This linear economy model of mass production and mass consumption is testing the physical limits of the globe. It is, therefore, unsustainable and a shift toward a circular economy is becoming inevitable.
The important role of Small and Medium Enterprises (SMEs) in most economies underpins this research, which develops an empirical analysis that allows us to explore the potential for implementation of the Circular Economy in SMEs and the barriers and opportunities they may distinguish from it. To that end, a survey was carried out in Navarra and the Basque Country, Spain. The main results show that companies are focused on complying with the law and, in many cases, they are worried about their company’s image. Moreover, they do not tend to be committed to environmental issues because they do not think it would increase their profits and competitiveness. The focus on cost savings became clear from the Factor Analysis applied to the Take-Transform and Recovery phases of the Circular Economy. In this sense, three factors were associated with the companies’ perception of the Circular Economy: 1) Material Provision, 2) Resources’ Reutilization and 2) Financial Advantage. With regard to the barriers, another Factor Analysis suggested two different categories of barriers: Hard barriers and Human-based barriers, each requiring different strategies for addressing them, must be considered. Finally, the study briefly examines the integration opportunities between SMEs with other companies and industry associations or clusters to develop industrial symbiosis and close their materials loop.