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A circular innovation strategy in a supply network context: evidence from the packaging industry
Abstract
Purpose
The research question is how can a company implement a circular innovation in a supply network context? Leveraging the main conceptual and interpretative models of the industrial marketing and purchasing thinking, this study aims to investigate the interplay between the process of circular innovation development and the changes in the structure and dynamics of the supply network in which innovation takes place.
Design/methodology/approach
This research applies a case study design focusing on participant interaction dynamics. The case relates to an industrial company producing an innovative coating solution for compostable packaging. The data used to develop the case study came from multiple sources but primarily from semistructured interviews that cover the implementation of the circular innovation and the configuration of the circular network.
Findings
The dynamics of interconnected relationships can configure a circular network that interconnects business and non business actors through vertical, horizontal and heterogeneous relationships. The network configuration is supported by the new mobilizer actor that facilitates the sharing of circular knowledge within the circular network, together with the sharing of a market orientation and entrepreneurial orientation within the supply network, through the educational learning path.
Originality/value
This paper aims to contribute to a new understanding of how circular innovation can be developed, adopted and diffused. In a network, when circular innovation takes place, the focal issue is not the new product or technology in itself but how such innovation is developed and implemented by and through the reconfiguration of the business and non-business relationships into circular network.
... This study offers a new perspective on supply chain resilience during crises, informed by contemporary works of IMP scholars (Håkansson and Snehota, 2024). The IMP industrial network approach is recognised as a valuable theoretical framework for examining these issues (Axelsson et al., 2022;Cantù and Tunisini, 2023;Eriksson et al., 2021;Gadde and Snehota, 2019). The consistent development of empirical research is a hallmark of the IMP tradition, and the emergence of novel crises in recent years has made it imperative to bridge the divide between the firmly established conceptual foundation of the supply network and the empirical exploration of supply chain resilience (Bygballe et al., 2023;Johnsen, 2018;Johnsen et al., 2019). ...
... The study provides an empirical perspective on how firms cope with supply chain disruptions while underscoring the significance of collaborative strategies (Bondeli and Havenvid, 2022;O'Toole and McGrath, 2023;Sodhi and Tang, 2021). Furthermore, the study elucidates the interplay between transient and enduring inter-organisational contexts in times of disruption and crises (Axelsson et al., 2022;Cantù and Tunisini, 2023;Eriksson et al., 2021;Gadde and Snehota, 2019;Sodhi and Tang, 2021). The study also aims to provide a novel empirical perspective into the theoretical realm of supply networks and supply network resilience development during such crises. ...
... Traditional linear models of supply chains primarily focus on sequential processes from raw material suppliers to end customers, which are frequently centred on upstream activities related to sourcing raw materials and production (Axelsson et al., 2022;Cantù and Tunisini, 2023;Eriksson et al., 2021;Ford et al., 2011;Gadde and Snehota, 2019). Instead, supply networks, encompassing both upstream and downstream dynamics, recognise the intricate relationships and interactions that characterise modern business operations (Axelsson et al., 2022;Bygballe et al., 2023;Cantù and Tunisini, 2023;dos Santos et al., 2020;Eriksson et al., 2021;Gadde et al., 2001;Gadde and Snehota, 2019;Harland et al., 2003;Huemer and Wang, 2021). ...
Purpose-This study aims to investigate the efficacy of the supply network approach in bolstering supply chain resilience amidst escalating global uncertainty. With enterprises worldwide facing increasing threats that disrupt supply chains, this research explores how firms enhance supply network resilience during crises. Design/methodology/approach-Using a multi-case study design, this research thoroughly examines interactions within firms' supply networks to uncover new insights on supply network approach and how firms enhance supply network resilience against global uncertainty. The selection of cases was methodologically aligned to represent diverse industries and geographical locations to ensure a comprehensive analysis. Findings-This study's findings reveal how firms develop supply network resilience during global crises. The supply network perspective provides a deeper understanding of how firms manage supply chain interactions, interdependencies and strategic positions to survive and thrive during crises. The conceptual framework developed here provides insights that can foster improved coordination and facilitate effective temporary organising. The framework highlights the need for firms to proactively seize opportunities and mitigate risks within their global supply chains during crises to boost overall resilience. Originality/value-Offering novel insights into the domain of supply chain networks, this study underscores novel perspectives of the supply network approach when firms develop supply chain resilience during global crises. Highlighting the adaptive responses of firms that integrate these approaches enriches the understanding of strategic manoeuvres firms can use to navigate global uncertainty and secure supply chain continuity.
... Finally, supportive policies and legislation are necessary to create a favorable environment for RR by providing incentives, setting standards, and promoting responsible resource management practices [15]. These attributes influence the formation and effectiveness of collaborative innovation networks by enabling stakeholders to pool resources, share knowledge, and coordinate their efforts [11,24,25]. These collaborative networks, in turn, are argued to be the most impactful in affecting RR success [26]. ...
... Collaborative innovation networks comprise interconnected relationships among diverse stakeholders within the supply chain, including commercial enterprises and nonbusiness entities, to stimulate RR [11,25]. Collaboration brings stakeholders together, creating a dynamic environment for generating innovative RR ideas [24]. ...
... Amir et al. [11] noted that diverse stakeholder networks leverage shared expertise, resources, and ideas to improve circular practices. Cantu and Tunisini [25] argued that reconfiguring business and nonbusiness relationships cultivates a collaborative circular network, supporting the successful implementation of circular innovation. However, Zhang et al. [34] highlighted that these collaborative efforts can only be successful if barriers such as differing priorities are addressed. ...
... The CE concept embraces a closed loop of material flow to preserve, reuse and extract resources from used products or waste, thus also promoting sustainability in the environmental and social spheres, and aims to capture economic value (Murray et al., 2017;Lahti et al., 2018). Circularity logic is gradually being implemented in many environmentally unsustainable industries, for instance, construction (Hossain et al., 2020), packaging (Cantu and Tunisini, 2023), food (Zhang et al., 2022) and, most importantly, the textile industry (Dziubaniuk et al., 2024;Franco, 2017;Jia et al., 2020), the focus of this study, which is conventionally considered to be one of the most polluting and least ethical industrial activities (Fontell and Heikkilä, 2017;Niinimäki et al., 2020). The textile industry is facing many uncertainties, as CE innovations and markets facilitating textile circulation are only just beginning to emerge, and there are constant changes in the regulatory environment (Franco, 2017;Desore and Narula, 2018). ...
Purpose
The purpose of this empirical study is to apply the industrial marketing and purchasing approach to explore ethical value co-creation and business ethics in the circular economy (CE) ecosystem (CEE) of the Finnish textile industry. A CEE involves a variety of business and institutional actors with shared business or societal targets. Ethical principles may become embedded in their first social interaction and can play an important supportive role in economic, environmental and social value co-creation, especially when the actors have sustainability goals.
Design/methodology/approach
This study uses a qualitative single-case study of a CEE in the Finnish textile industry where diverse actors seek to create value from circularity. The analysed data represent a set of interviews with business and institutional actors directly involved in managerial activities in the CEE of textile industry in Finland.
Findings
This study provides a conceptual framework of actors’ interactions and ethical value co-creation aimed at meeting CE and sustainability goals at the levels of actors, the network and the ecosystem. The findings emphasise the value of proactive collaboration among business and institutional actors seeking innovations, knowledge-sharing and business development in fostering more circular operations in the textile industry and thereby effecting the CE transition. Efficient interactions for value co-creation among actors can be grounded on ethical values such as trust, transparency, shared sustainability goals and the power to positively influence and motivate actors and even consumers to transition to CE principles.
Originality/value
An original research framework of ethical value co-creation is proposed in this study based on the combined concept of ethical embeddedness and ecosystem orchestration mechanisms to achieve sustainability and CE goals. This study contributes to the limited business ethics studies in circular business and CEE research and empirically examines business interactions among actors within a CE ecosystem. The managerial and policymaking implications of this study highlight the strategic importance of various actors’ interactions in implementing circularity in business processes.
... A globális információs korszakban a tudásmegosztás nélkülözhetetlen eszköze az innovációnak, a fejlődésnek és a hatékony problémamegoldásnak. A szorosan összefüggő üzleti kapcsolatok révén olyan tudást és bevált gyakorlatokat oszthatunk meg, amelyek elengedhetetlenek az új paradigmák, például a körforgásos gazdaság elterjedéséhez (Cantu, 2023). A tudásmegosztásnak számos szervezeti akadálya lehet, melyek egy része a menedzsment hibájából merül fel, más része a szervezeti kultúrában gyökerezik (Keczer, 2016). ...
A szerzők kutatásának témája a kultúra hatásának vizsgálata a tudásmegosztásra Magyarország és Svédország esetében. A kulturális különbségek feltárása segíthet annak megértésében, hogy mely tényezők befolyásolják a tudásmegosztást különböző környezetekben és hogyan lehet ezeket a különbségeket felhasználni a hatékonyabb működés érdekében. A szerzők célja az, hogy megvizsgálják a kultúra hatását a tudásmegosztásra különböző aspektusból a két nemzet összevetése alapján. Bizonyítani kívánják, hogy a szervezeteknek a kulturális tényezők figyelembevételével kell a tudásmegosztást megszervezniük. Kutatási módszerük a Delphi-módszer, amelyet két fordulóban valósítottak meg. Az első körben nyílt kérdéseket tettek fel, a második körben pedig egy kérdőívet küldtek ki. Az első kör eredményeit az ATLAS.ti és a Voyant Tools szövegelemző szoftverrel, a második kör eredményeit az IBM SPSS program segítségével elemezték. A kutatási eredmények alapján elmondható, hogy a magyar és a svéd válaszadók eltérően vélekednek a tudásmegosztásról.
... Public higher education institutions need better alignment of strategic plans with sustainability in education and curricula (Duarte et al., 2023). In interconnected relationships, creating a circular network linking corporate and non-business stakeholders through vertical, horizontal, and heterogeneous linkages can enhance strategic planning (Cantu & Tunisini, 2023). During crisis situations, rapid and innovative response strategies are essential, as traditional response techniques may be insufficient (Albers & Rundshagen, 2020). ...
Purpose: This study aims to enhance the understanding of how TQM practices can be leveraged to improve healthcare services in Pakistan. Specifically, it seeks to explore the relationship between various TQM practices and the development of innovative capabilities in the healthcare sector, with collaboration and complexity acting as mediating and moderating factors, respectively. Design/Methodology/Approach: An integrated research approach was employed, combining structured surveys and statistical analysis of data collected from private hospitals in Pakistan. The study investigates the correlations between TQM practices, innovative capabilities, and the mediating/moderating effects of collaboration and complexity. Potential limitations such as response bias, generalizability issues, and the dynamic nature of the healthcare environment are acknowledged. Notably, financial feasibility is not examined within this study. Findings: The study reveals the challenges of fostering healthcare innovation in Pakistan, particularly in the context of cultural norms, resource constraints, and regulatory challenges. The findings underscore the importance of prioritizing TQM, promoting cross-functional collaboration, strategic quality planning, overcoming communication barriers, and addressing environmental complexities to enhance innovative capabilities in the healthcare sector. Implications/Originality/Value: This research contributes significantly to the global understanding of healthcare advancements in developing nations, particularly in the context of Pakistan. It highlights the necessity for context-sensitive approaches and tailored strategies to improve healthcare innovation. The study also identifies gaps in existing literature, urging future research to adopt more inclusive methodologies for a comprehensive understanding of innovation capability in Pakistani healthcare. Despite its limitations, this work provides valuable insights for policymakers and healthcare professionals aiming to advance healthcare services in resource-limited settings.
The development and diffusion of sustainable innovations are of interest to various public and private sector actors. The diffusion of sustainable innovations into value networks facilitates and is facilitated by the change of markets towards sustainability; however, this interaction needs further investigation. We examine how combinations of value network actors' intentions and activities affect market change for a sustainable innovation We empirically explore market change related to introducing bioplastics into plastic food packaging value networks. We increase the understanding of market change for a sustainable innovation by showing how not only the actors with direct intentions to support the innovation but actors and activities indirectly related to the sustainable innovation contribute to market change. Such indirectly supportive activities focus on broader sustainability aims and can, for example, change market representations, practices, and norms in favor of the sustainable innovation. We propose sustainability layers to understand the diverse sustainability focuses of actors and their relation to the market change in question. Specifically, we contribute to market change literature by broadening the examination scope beyond the most active actors driving market change for an innovation.
The circular economy (CE) has been lauded as a path enabling more environmentally sustainable economic growth for diverse industrial companies, requiring them to design and implement circular business models (CBMs). A CE widens a company's perspective to include supply chains when adopting and implementing a CBM; however, the intersection of CBMs and circular supply chain management (CSCM) research has been under-studied. Although considerable CBM research has been carried out, the role of supply chain collaboration in companies' CBMs has been neglected. To address this research gap, in the present study we integrate knowledge from CBM and CSCM literature and conduct a qualitative multiple case study of six Italian and Finnish companies in order to analyze how their supply chain collaborations enable implementation of CBMs. The results allow us to develop a new conceptual framework, a synthesis of how supply chain collaborations support companies' CBM design and implementation, and a research agenda comprising seven thematic management aspects at micro, meso, and macro-levels. The framework, synthesis, and agenda provide conceptual guidance and structure for researchers and pragmatic guidance for managers.
Purpose
Although the governance and management of networks are deeply intertwined, there is a lack of empirical studies on how strategic networks (SNs) configure both realities for higher performance. This paper aims to analyze the array of governance and management sets adopted by high-performing SNs.
Design/methodology/approach
The authors bridge the research gap by using qualitative comparative analysis on the governance (decision-making process, formalization, specialization, incentives and control) and management (strategy, structure, processes and leadership) dimensions of 73 Brazilian SNs.
Findings
The authors found that high-performing SNs adopt one of two governance/management configurations. “Piloted SNs” rely on specialized working teams, have structured decision-making processes and avoid using incentives. Conversely, “atomized SNs” run on incentives and control while eschewing specialization and rigid decision-making procedures. The authors also found that both configurations adopt formal procedures and leverage all four management dimensions.
Originality/value
The study’s results offer pathways for SNs to increase their performance and attract new members, as well as insights into the theory of SN governance.
Transition to a Circular Economy (CE) is about structural change and is predicated on the introduction of transformative eco-innovation (EI). Research on the CE–EI nexus has recently attracted attention both from an analytical and regulatory perspective. However, in-depth research exploring EI dynamics within the CE is still marginal, especially concerning the trends and dynamics of the pro-CE innovation policy and strategy. This paper addresses this gap by taking advantage of the burgeoning research on CE of the last 20 years and offers a new working synthesis. By implementing a “(systematic) review of (systematic) reviews”, this paper provides a new comprehensive framework for understanding pro-circular innovation strategies and, as a complement, argues the need to advance “circular innovation studies” as an agenda in its own right. Innovations related to recycling and recovery CE strategies along with business-model innovations and systemic/transformative innovations are found to be a major current trend in the research, connecting supply and demand side innovations and also driving other forms of innovation linked to design, product manufacturing, logistics and reverse logistics and end-of-life management and recovery. Additionally, of note is that the conceptual understanding of EI dynamics within a CE is still mainly implicit (rather than explicitly discussed) limiting the possibilities to advance knowledge in the area of innovation for CE: this is why we propose a “circular innovation studies” agenda.
The study examines the changes to existing industry value networks that could support the diffusion of sustainable innovation in food packaging.
The transformation and distribution of agro-food waste into a new bioplastic packaging through the existing food packaging value network provides the empirical context for the study. The results describe the changes to the existing value network at firm, network, and macro levels, and the relationships between these changes.
The article helps to understand, how the adoption of sustainable innovations, such as new packaging materials, might seem simple, but is complicated by the broad changes required from the existing value network.
Circular Economy (CE) and the adoption of its principles globally are more important than ever to sustain the rate of production of goods and services to meet the ever-increasing consumer demand that is burdening the environment and society. This study investigates the adoption of CE principles amongst emerging economies as the challenges faced by these economies are generally different in terms of resource availability, varying government policies and consumer behaviour from those of developed economies. This research presents an empirically validated CE adoption model using a sample of 183 consumer responses. The study highlights the strong influence of factors such as consumer behaviour on the acceptance of remanufactured products and using products as a service to encourage the adoption of CE practices in emerging economies. This research offers businesses, consumers and policy makers insights into measures that have been taken by emerging economies that are in line with CE principles.
The transition toward the sustainability-driven circular economy is emerging across global markets. The circular economy refers to a regenerative and restorative economic system that aims to optimize resource usage and reduce waste, and offers potential to innovate novel value creation opportunities in B2B markets. However, how the value creation opportunities in circular economy are captured in supplier firms’ customer value propositions (CVPs) remains underexplored. To address this critical gap, we develop a theoretical framework that illustrates the architecture of CVPs, and use it to conduct an extensive multiple-case study across several industries, offering types, and firm sizes, analyzing 74 documented CVPs in the Finnish circular economy. The results reveal that CVPs in the circular economy embody four alternative value creation logics (resurrect, share, optimize, and replace value) that are built on different forms of innovations, and highlight different design elements. This study advances current marketing theory by illustrating how suppliers articulate CVPs in the circular economy, and highlighting the key differences to prevailing insights from linear economy. For managers, this study offers important insights into designing CVPs that resonate with circular economy–oriented customers and broader stakeholders.
Purpose
The purpose of this paper is to unveil the circular economy (CE) values with an ultimate goal to provide tenets in a format or structure that can potentially be used for designing a circular, closed-loop supply chain and reverse logistics.
Design/methodology/approach
This is desk-based research whose data were collected from relevant publication databases and other scientific resources, using a wide range of keywords and phrases associated with CE, reverse logistics, product recovery and other relevant terms. There are five main steps in the reformulation of CE principles: literature filtering, literature analysis, thematic analysis, value definition and value mapping.
Findings
In total, 15 CE values have been identified according to their fundamental concepts, behaviours, characteristics and theories. The values are grouped into principles, intrinsic attributes and enablers. These values can be embedded into the design process of product recovery management, reverse logistics and closed-loop supply chain.
Research limitations/implications
The paper contributes to the redefinition, identification and implementation of the CE values, as a basis for the transformation from a traditional to a more circular supply chain. The reformulation of the CE values will potentially affect the way supply chain and logistics systems considering the imperatives of circularity may be designed in the future.
Originality/value
The reformulation principles, intrinsic attributes and enablers of CE in this paper is considered innovative in terms of improving a better understanding of the notion of CE and how CE can be applied in the context of modern logistics and supply chain management.
The capability to rapidly and successfully move into new business models is an important source of sustainable competitive advantage and a key leverage to improve the sustainability performance of organisations. However, research suggests that many business model innovations fail. Despite the importance of the topic, the reasons for failure are relatively unexplored, and there is no comprehensive review of the sustainable business model innovation literature. This research provides a review of the literature, using a systematic database search and cross-reference snowballing. Its key contributions are: (1) a review of the key underlying concepts, discussing their similarities and differences and offer new definitions where there is an identified need; (2) we identify a research gap; and (3) we deduct research questions to address the gap.
Purpose
Most scholars acknowledge the role of firm-stakeholder relationship for enabling corporate sustainability (CS), but existing literature tends to apply a superficial understanding of interaction. Thus, the purpose of this paper is to advance knowledge by challenging classical stakeholder theory with fundamental insights from the IMP perspective, which in turn leads to a deeper conceptualization of interactive CS.
Design/methodology/approach
A typology framework is developed through an abductive research design grounded in the concepts of actors, resources, and activities. The authors illustrate the potential of the framework through a longitudinal case study. The empirical case revolves around an initiative for recycling of plastic material in a partly beforehand established supply chain, and the study reveals three main findings.
Findings
First, recycling solutions can result in major technological challenges. For example, using recycled material can jeopardize industrial quality standards. Second, third-party stakeholders represent critical knowledge and competence that can remedy technological challenges. Finally, R&D projects are important means for developing firm-stakeholder relationships.
Research limitations/implications
The paper introduces IMP concepts to the CS debate, which can illuminate the emerging literature on tensions and paradoxes related to CS phenomena. Further research is needed on the role of non-business actors as capacity generators for social and environmental change in traditional business networks.
Practical implications
The proposed framework can be used to analyze why some stakeholders (individuals and groups) turn into contributing actors in inter-organizational relationships, while others remain latent.
Originality/value
This paper illustrates the usefulness of actor bonds, resource ties and activity links as explanatory concepts. Moreover, developed relationships in terms of collaboration and networks represent a capacity to change, which is overlooked in current CS debates.
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.
This article introduces the Special Issue of Managing Business and Innovation Networks and makes an independent contribution to the advancement of network management research. The study has three ambitious goals. First, it evaluates the main developments in network management research from 2000 to 2016, focusing on disciplinary openings. Second, it specifies the contributions of recent domain extensions (business fields, ecosystems, platform networks) to network management, and clarifies the role of networks and network management in these domains. Third, it proposes a general theory of network management based on the past 20 years of research in the field and the contributions of SI articles. The theory explains how the factors at three contextual levels – environment, network and actor – influence network management activities, forming patterns of management based on activity configurations. The framework consolidates our fragmented knowledge on network management and paves the way for more advanced research and management. We conclude with suggestions for future research.
The traditional firm and product-centric view of platforms is changing. Platforms are increasingly developed around value that is co-created with a network of actors. In such settings, lead firms shape their environments and develop value platforms through network orchestration. This study examines how lead firms mobilize network relationships to support and build novel value platforms. The research adopts a multiple case study methodology, investigating the development of six value platforms in network settings within Europe. A large-scale interview program over several years was conducted. The findings unravel practices constituting four overarching network orchestration mechanisms in the value platform development context; envisioning, inducing innovativeness, legitimizing, and adjusting. The study explains the relationships and interplay between the orchestration mechanisms and articulates theoretical and managerial contributions.
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.
The Industry 4.0 (I4.0) revolution has led to rapid digital transformation, automation of manufacturing processes and efficient decision-making in business operations. Despite the potential benefits of I4.0 technologies in operations management reported in the extant literature, there has been a paucity of empirical research examining the intention to adopt I4.0 technologies for managing risks. Risk management identifies, assesses, and introduces responses for risks to avert crises. This study combines institutional theory, the resource-based view and the technology acceptance model to develop a novel behavioural model examining the adoption of big data, artificial intelligence, cloud computing, and blockchain for risk management from the operations manager's perspective, which has never been examined in the literature. The model was tested for each I4.0 technology using data collected from 117 operations managers in the UK manufacturing industry which were analysed using structural equation modelling. We contribute to the theory on I4.0 in digital manufacturing by showing the impact of digital transformation maturity, market pressure, regulations, and resilience on the perceived usefulness and adoption of these technologies for managing risks in business operations. Based on the findings, we discuss implications for operations managers effectively and efficiently to adopt I4.0 technologies aiming to boost operational productivity.
The social structures in organisations constitute essential enablers for the betterment of small and medium enterprises’ (SMEs) performance. Our paper explores such enablers in the context of SMEs’ contribution to the Circular Economy (CE), through the lens of institutional and dynamic capability view theories. We focus on the relationships between institutional pressures, eco-innovation, green supply chain management (GSCM) practices, CE capability, big data driven supply chains (BDSC), and performance for CE supply chains. We used a survey to collect data (n = 240) from people working in SMEs in the manufacturing sector in South Africa. Drawing from institutional theory, we find that coercive, normative, and mimetic pressures have a positive relationship with eco-innovation. Furthermore, eco-innovation is positively associated with GSCM, with these two concepts significantly related to the building of CE capability. The final element in our framework shows a positive relationship between GSCM and CE capability. Our findings reveal some nuances in terms of the relationships between the concepts. For example, whilst BDSCs have a moderating influence on the relationship between CE capability and firm performance for the CE supply chain, no such influence is evident for the relationship between GSCM practices and performance. Further work needs to focus on explaining this and other findings and on validating our theoretical framework.
Research on open innovation and sustainability suggests that alliances with external stakeholders help to improve innovation outcomes. This paper taps into the intersection of these literatures and investigates how alliance proactiveness and alliance portfolio coordination affect firms' sustainability-oriented innovation (SOI) outcomes. Data were collected from 170 firms in the Basque Country region in Spain, which has a highly collaborative regional innovation system. Partial least squares (PLS) modeling confirmed that alliance proactiveness is positively related to radical SOI, while alliance portfolio coordination is positively related to incremental SOI. In addition, these two capabilities involve a positive interaction effect in the case of radical SOI. An additional set of post hoc tests using latent class analysis (FIMIX-PLS) provided further evidence that firms with different internal features and levels of environmental turbulence benefit to varying extents from these capabilities and their interactions. Overall, the findings of this study show the benefits of the coupled mode of open innovation and alliance capabilities in reaching positive outcomes in SOI. On the one hand, companies focusing on incremental SOI can reap greater benefits from open innovation when collaborating within their existing portfolio; while for radical SOI, alliance proactiveness is beneficial for finding disruptive partners.
Sustainability represents a ‘grand challenge’, which can often not be addressed by actions of individuals or single organizations alone. To understand collaborative sustainability activities, in this article we propose the concept of open sustainability. We derive open sustainability from literature in the areas of sustainability, open approaches, and open innovation, and define the concept based on key tenets as follow: open sustainability refers to an orchestrated distributed process in which a focal company interacts with partners across organizational boundaries in order to better achieve its own (micro-level) sustainability objectives, its direct nets' (meso-level) sustainability objectives, and the broader networks' (macro-level) sustainability objectives, both short and long term. Based on this definition, we introduce the articles of our special section on open sustainability.
The present research seeks insights on potential “transformative” eco-innovation pathways towards a “Circular Economy”. By taking a neo-Schumpeterian perspective on sustainability transition and adopting a bottom-up foresight methodology, namely a (3-stage)policy-learning Delphi approach drawing on a (29-strong)panel of experts belonging to a variety of institutional sectors (public, business, academic actors, as well as NGOs)from diverse geographical backgrounds (11 countries across 3 continents), the study explores Circular Economy's key characteristics and appraises the fundamental strategies and trade-offs that must be understood and managed for transition. The evidence gathered through the participatory exercise, contrasted with prior knowledge from systematic literature reviews, suggests that Circular Economy is both a holistic concept and an operational tool. Results strongly suggest systemic eco-innovation, powered by multidimensional policies, as the key to unlock deep transition. In particular, over the next 20 years Circular Economy development is more than technological and economic puzzle-solving; it will be contingent on the ability to creatively overcome real political trade-offs and broader societal challenges needing to include in their action more social and behavioural considerations.
Extant literature in marketing capability with an inside-out perspective stresses existing internal resources as the basis for developing marketing capability. This study, taking an outside-in perspective, argues that starting from external environment and developing strong buyer-supplier relationship can help formulate strong marketing capability of the buying firm. Using survey data from 199 Chinese manufacturing buyers who identified 937 suppliers, we found that strong buyer-supplier relationship can breed strong supplier information sharing and supplier flexibility, which fully mediate the effect of buyer-supplier relationship on buying firms’ marketing capability. The findings provide support to the outside-in approach and reveal how external inter-firm relationship can be turned into intra-firm capability, and suggest that strong upstream buyer-supplier relationship can be a necessity for building downstream buyers’ marketing capabilities. The findings also suggest an alternative strategy for developing marketing capabilities starting from external suppliers, and may help close the gap between marketing capability and dynamic external environment.
This paper reflects on purchasing & supply management (PSM) research in an industrial marketing perspective, using Industrial Marketing Management (IMM) as a proxy. A systematic review of IMM papers is conducted, demonstrating that a large and growing number of PSM papers have been published in IMM and that a large proportion of these rely on the IMP Interaction Approach as theoretical perspective. The paper discusses themes of PSM research and proposes three avenues of future PSM research for industrial marketing scholars: 1) theorizing on the concept of supply networks, 2) revisiting the notion of managing supply networks and 3) debating established “best practices” in PSM.
The proposal is therefore to dedicate more research to develop further theory on supply networks and how to manage within supply networks, because there is a surprising lack of conceptual clarity as to the meaning of supply networks and the notion of managing supply networks. The paper argues that as increasing supply network complexity and risks, especially concerning sustainability, requires new thinking about how best to influence and manage supply networks.
The view that innovation is a key driver for sustainability is widely accepted among scholars, industry professionals, and government representatives. This is due to the fact that sustainable development is a pressing issue that requires immediate action and changes from governments, industry, and society as whole. This article reviews the literature on innovations that can lead to transformations in individuals, organizations, supply chains, and communities toward a sustainable future. Although many of the articles explored in this review report on existing urgent environmental and social issues, their findings, recommendations, and contributions are encouraging as we make progress toward a sustainable society through innovation and change. This article reviews the diversity of innovation for Sustainable Development in the literature, proposes a typology of such a phenomenon, provides an overview of key articles based on the primary subjects they address, and identifies a series of recommendations for the future development of the field.
Considerable progress has been made in identifying market-driven businesses, understanding what they do, and measuring the bottom-line consequences of their orientation to their markets. The next challenge is to understand how this organizational orientation can be achieved and sustained. The emerging capabilities approach to strategic management, when coupled with total quality management, offers a rich array of ways to design change programs that will enhance a market orientation. The most distinctive features of market-driven organizations are their mastery of the market sensing and customer linking capabilities. A comprehensive change program aimed at enhancing these capabilities includes: (1) the diagnosis of current capabilities, (2) anticipation of future needs for capabilities, (3) bottom-up redesign of underlying processes, (4) top-down direction and commitment, (5) creative use of information technology, and (6) continuous monitoring of progress.
Social media offers a myriad of opportunities for entrepreneurial marketing strategies that leverage the power of communities, especially when they are combined with traditional approaches such as celebrity endorsement. The reach, frequency, and speed of communication on social media offer the ideal leverage for the drivers of entrepreneurial marketing. However, the rapid rate of change may threaten the effects of investments in entrepreneurial marketing on social media and they might become only short-lived. Employing structural equation modeling, we test the long-term effect of Facebook-based celebrity endorsement on purchase intention among 234 members of a Facebook fan community in a two-wave longitudinal design. We argue that this relationship is mediated by a sponsor's brand image and moderated by brand differentiation. This study is the first to investigate the long-term effects of entrepreneurial marketing on social media. We present the contributions and implications of our findings as they affect research and practice.
In this chapter we analyze patterns in the nature of eco-innovation research. For this, we conducted different types of bibliometric analyses on Web of Science Core Collection data. The analysis reveals that eco-innovation is examined from different perspectives. These are (1) supply-side perspectives focusing on firms and industries (e.g. drivers for and barriers to eco-innovation); (2) technology-centered research (e.g. carbon capture and storage, electric vehicles, smart plugs); (3) science-based research (e.g. new materials); (4) sectoral studies (e.g. steel and iron industry, transport, information technology, food, agriculture, tourism); (5) the knowledge support element in eco-innovation (e.g. skills and training); (6) demand-side analyses (e.g. diffusion and adoption dynamics of individuals, households, firms), and (7) a policy influence perspective (the impact of policy instruments e.g. eco-labels, policy mixes). Concept-wise, we observe that the concepts of industrial ecology, industrial symbiosis, and circular economy are gaining importance as analytical lenses. Our analysis reveals differences between “eco-innovation” and “environmental innovation” research in that the latter pays more attention to policy influences and is less consumption-oriented. We also identified a shift from analysing the impact towards supply and demand side research, a shift from environmental innovations to the generative processes and dilemmas for sustainability-oriented innovations, and a rise in publications from less developed parts of the world.
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.
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.
In this study, attention is turned to those actors who orchestrate innovation networks; their types, roles and capabilities. We assert that the type of orchestrator and what they (can) do are related aspects. Our starting point is that while orchestration in general comprises a variety of important activities, ranging from ensuring knowledge mobility to coordination, not all of these are accomplished by the same means or are equally emphasized at all times. A conceptual review of existing literature and the related qualitative comparative analysis suggest that orchestrators take different roles by focusing on specific sets of activities at certain times and conducting them in different ways. This implies mastering specific capabilities. Furthermore, sometimes circumstances push orchestrators to adopt roles that are unnatural to them. In those cases, capabilities of a different nature become relevant.
Following from this line of thinking, our findings indicate three types of capabilities. First, operational role-implementation capabilities determine the ease and success of executing role-specific activities. Second, we further suggest that role-switching capabilities allow the orchestrator to move between the roles that it can naturally adopt. A third type of capability, role-augmentation, is needed to adopt roles beyond natural limitations related to orchestrator type. The resulting conceptual framework aims to combine the scattered existing literature and provide conceptual tools for future research.
Understanding which drivers and barriers exist in the development of a circular economy (CE) is a relevant and timely endeavour. The aim of this paper is to contribute to this debate by analysing evidence regarding the different factors helping and hampering the development of a CE. Specifically, this paper focuses on the eco-innovation (EI) pathway towards a CE, and tries to coordinate available but fragmented findings regarding how “transformative innovation” can foster this transition while removing obstacles to sustainability. Drawing upon a new corpus of both academic and non-academic literature, this work offers a framework for analysis, as well as an evidence-based survey of the challenges, for a green structural change of the economy. We argue that the combination of the innovation systems’ view with the more recent “transformation turn” in innovation studies may provide an appropriate perspective for understanding the transition to a CE. Ultimately, the paper aims to capitalise on these insights to contribute to the design of policy guidelines and organisational strategies.
Circular Economy (CE) currently represents a viable option for countries, governments, academia and society to transform the linear and semi-circular materials and energy flows into circular flows and obtain better sustainable benefits. In this sense, Industrial Ecology (IE) with its tools can assist in the transition to CE. Therefore, the main goal of this paper is to present the theoretical contribution of IE to CE. The methodology used was based on bibliometric analysis in the international context. With regard to the bibliometric analyses, we have identified that the evolution of CE would not be possible without the existence of IE concepts and tools, especially with tools such as Industrial Symbiosis (IS) and Eco-Industrial Parks (EIPs). Furthermore, three levels of IE contribution to CE were identified, such as: conceptual, technical and policy aspects. Finally, new CE based researches from an IE perspective with bibliometric analysis and with co-citation networks are possible, including, solid waste management and policies.
In this paper, we examine the managing of the full innovation process, from visioning to commercialization, in extensive networks. By drawing on the IMP, strategic network, and innovation network literatures, we develop a comprehensive picture of the management activities when 'mobilizing', 'orchestrating', and 'involving' actors in working towards the innovation aim in such network settings. Through using two longitudinal case studies - the one pursuing radical and the other incremental innovation - we provide an empirically refined understanding of seven key management activities (motivating, resourcing, goal setting/refining, consolidating, coordinating, controlling, and leveraging), which are needed throughout the innovation process to turn the diversity of an innovation network into an opportunity rather than an obstacle. We demonstrate how actor diversity and the type of innovation (radical or incremental) shape the management activities, and map a dynamic actor composition that evolves alongside the innovation process. The longitudinal data highlights the consequences of the presence or lack of management activities, and the interlinkages between activities throughout the process. Our findings also provide insights for practitioners on how to cope with the increasing tendency to involve diverse stakeholders in innovation by pinpointing the critical management activities that can be employed.
Circular economy (CE) is currently a popular concept promoted by the EU, by several national governments and by many businesses around the world. However, the scientific and research content of the CE concept is superficial and unorganized. CE seems to be a collection of vague and separate ideas from several fields and semi-scientific concepts. The objective of this article is to contribute to the scientific research on CE. First, we will define the concept of CE from the perspective of WCED sustainable development and sustainability science. Second, we will conduct a critical analysis of the concept from the perspective of environmental sustainability. The analysis identifies six challenges, for example those of thermodynamics and system boundaries, that need to be resolved for CE to be able to contribute to global net sustainability. These six challenges also serve as research themes and objectives for scholars interested in making progress in sustainable development through the usage of circular economy. CE is important for its power to attract both the business community and policy-making community to sustainability work, but it needs scientific research to secure that the actual environmental impacts of CE work toward sustainability.
Disruptive marketing strategy is a process by which valuable marketing activities take root initially in applications within a department or function in an organization and then relentlessly move across a company’s internal departments/functions, eventually connecting with external companies to ensure that market-based value creation is delivered to the company’s primary stakeholders. Understanding market-based value creation in the field of marketing has centered, to a large degree, on market orientation studies via field-based, discovery-oriented research. In some ways, market orientation – while viewed as the implementation of the marketing concept – became a disruptive marketing strategy for many organizations. That is, marketing started to permeate all aspects of an organization, and even became a boundary-spanning phenomenon connecting multiple companies. The activities in marketing moved beyond their traditional home department and the marketing function became cross-departmental and even, in some cases, cross-company focused. Where do we go next? Disruptive marketing strategy will help the field and practice of marketing evolve.
For many years, companies have perceived sustainability and corporate social responsibility as annoying trends involving regulations and extra costs. A new concept of industrial organization is required to dissociate growth in resource consumption from increasing prosperity. This concept must move beyond significant efficiency gains in order to successfully deliver change—an idea that is known as a circular economy. The increasing amount of attention paid to environmental issues and pressure from stakeholders have forced businesses to embrace the complexity and interdependencies between shareholder value and sustainable value. Sustainability-driven innovation that increases the circularity of resources, as in the case of Patagonia, Inc., is the key to generating a sustainable competitive advantage that marries economic and social objectives. This article explores ways in which corporations can pursue economic, social, and environmental objectives while simultaneously embracing circularity.
This paper questions the assumption in much of the marketing and product-service literature that products can be treated as stable platforms for the delivery of services. Instead, it uses the notion of the product biography to argue that products are chronically unstable, both physically and institutionally, and focusses on the managerial and institutional effort required to temporarily stabilise and qualify products for exchange or service value-creation. The context of the circular economy, which presents particularly acute challenges of qualification, is used to stimulate insights into how the product biography approach can inform the servitization debate. In particular, the circular economy perspective emphasises the need to see products as qualified by and constitutive of a distributed network, rather than defined once and for all by their producer, and points to entrepreneurial opportunity in the moments of transition between singularised, unique specimens and general, commodified, manageable objects - and . vice versa. The wider and multiple product biographies occasioned by the circular economy also lead to reconfiguration of networks, as new potential valuations give rise to new entrepreneurial spaces.
This paper investigates how sustainability spreads across supply networks. Adopting an Industrial Marketing & Purchasing (IMP) Interaction Approach (Håkansson, 1982), we seek to understand sustainability spread as a change process that affects different supply network actors and the impact of power and trust on the spreading process. The paper reports on an in-depth case study of the development of a sustainability initiative in the bio-chemical industry, based on data collection with multiple supply network actors across several tiers, providing unique and rich insights into understanding sustainability spread in a supply network and the perceptions of multiple supply network actors on the role of power and trust on the spreading process. Data collection comprised 20 semi-structured interviews spanning eight supply network actors, supported by secondary data such as archival records. The case study indicates that both coercive and non-coercive power as well as trust, significantly impact the actors' engagement in sustainability initiatives and its wider spread in supply networks. The paper contributes to the literature on sustainable supply chain management and IMP research on sustainability spread and, in particular, provides insights on the impact of power and trust on the process of sustainability spread across dyadic relationships into the wider supply network.
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.
Our paper is concerned with how managers understand their surrounding network and what strategic actions they take based on this insight. Recent research in the areas of network management and business relationships shows increasing interest in the interplay between cognition and action, particularly on how managers relate perceptions about their business network (“network picturing”) to decision-making and strategizing activities. In this study, we apply a novel research approach combining process research and action research methodology. Our sample is introduced to business network theories and concepts, and the use and adaptation of these concepts results in managerial options being articulated and applied. Our findings add new insight in the field of network strategy and network picturing. Network picturing represents a way to understand the boundaries of the firm and how this understanding affects managers' decisions. This differs from the fundamental distinction between the external and the internal environments of classical strategy analysis. In terms of network picturing, strategizing is a way to understand the resulting actions or network outcomes that managers see as viable within their surrounding network. We also provide a conceptual process exercise as an example of how this insight can be relevant for managers in their decision-making processes.
Business strategy is becoming increasingly ’pluralist’, drawing on the insights of different disciplines and business practice in different parts of the world. This book brings together, under three main headings, the work and ideas of leading international scholars working in the field: Part I, Technology in the firm (4 chapters); Strategy/organization (6 chapters); and Part III, Regions (8 chapters). The purpose of the book is to explore, from different perspectives, the dynamic interplay between the technology of a firm, its strategies, organizational choices, and issues of place, region, and location. The volume is an edited version of the revised papers that were originally presented at the Third Prince Bertil Symposium on the Dynamic Firm, in Stockholm, in June 1994.
This article aims to shed light on the drivers underlying the role and scope of intentional governance of the structural dynamics of whole interorganizational networks. Prior research has distinguished networks that are emergent from networks that are orchestrated. While empirical studies have shown situations in which the role and scope of intentional governance of whole interorganizational networks has changed in time, and there is a growing interest regarding the endogenous drivers of network dynamics, the dimensions that influence intentional governance of network structure dynamics and the way this is carried out remain still to be elucidated. In order to pinpoint these drivers, we leverage the models of network structure dynamics elaborated within studies conducted at the intersection between network research and complexity science to propose a multilevel interpretive framework that clarifies the role and scope of intentional agency at different structural levels of interorganizational networks. Our framework advances a twofold conceptual contribution: on one hand, we tackle the change in the role and scope of intentional governance of network structures in both the early stages and the later stages of network evolution. On the other, we interpret the network of formal ties as resembling the accelerating network model, with the network of informal ties being akin to the scale-free (or truncated scale-free) network model of complex networks theory.
