Supply chain management for circular economy: conceptual framework and research agenda

Disentangling circular economy practices and firm's sustainability performance: A systematic literature review of past achievements and future promises

This paper systematically and critically reviews the literature on the intersection of circular economy practices (CEPs) and sustainability performance (SP). We synthesize and analyze the extant literature to uncover the knowledge gaps, highlight the contradictory views, and provide a comprehensive overview of the field. Following a detailed database search, we selected 104 empirical studies published in peer-reviewed journals for analysis. Our review reports the publication trends, top publishing journal outlets, research methodologies, and empirical contexts. We outline the theoretical underpinnings, identify the diverse circular economy practices and the key factors that impact circular economy practices and sustainable performance. The review shows a propensity for most authors to reuse established theories or not use theory at all, revealing the need for theory development. Furthermore, our analysis revealed that R&D and innovation, digital technologies, organizational capabilities/resources, and stakeholder and institutional pressure substantially influence the CEPs - SP relationship. Through our detailed assessment of the existing literature, we identified and proposed several themes and avenues for future research.

Portfolios of sustainable practices for packaging in the circular economy: an analysis of Italian firms

Purpose

This study analyzes sustainable practices adopted by Italian firms to enhance the circularity of packaging and related results in terms of environmental improvements.

Design/methodology/approach

The authors developed an empirical analysis using publicly available data from the National Consortium of Packaging (CONAI) in Italy, which consists of 603 circular packaging projects. The authors ran both descriptive and prescriptive analyses to determine individual sustainable practices and portfolios adopted to enhance packaging circularity and to verify related reductions in terms of CO2 emissions as well as energy usage and water consumption.

Findings

The findings reveal that firms are more accustomed to focusing on single sustainable practices than on portfolios of practices to achieve packaging circularity. Raw material saving and logistics optimization are the most frequent sustainable practices adopted by firms to improve circularity of packaging. The reuse of packaging allows firms to simultaneously reduce CO2 emissions, energy usage and water consumption. Preferences in terms of portfolio of sustainable practices are strictly linked to the types of materials used for packaging and environmental targets.

Originality/value

The authors investigate environmental practices that firms adopt to support packaging circularity, and the authors detect portfolios of sustainable practices that positively impact environmental performance indicators. This research extends a significant glimpse into the portfolio of sustainable practices for packaging in the circular economy implemented by firms, filling academic gaps and indicating business opportunities and avenues for economic development.

Sustaining circular economy practices in supply chains during a global disruption

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.

Barriers to circular supply chain: the case of unorganized tire retreading in India

Purpose

To understand the role of the unorganized sector in the push toward a circular economy (CE), the authors consider the case of the unorganized tire retreading industry in India and examine the barriers it faces in contributing to a circular tire supply chain in India.

Design/methodology/approach

The authors used grounded theory methodology (GTM) to understand the barriers to realizing the CE in the Indian unorganized tire retreading industry. This methodology facilitates the acquisition of new insights into an existing phenomenon or in studying emerging areas that require investigation.

Findings

Through the analysis, the authors tease out ten critical barriers that impede the Indian unorganized tire retreading industry. The two most vital barriers are the lack of effective promotional methods and the poor implementation of standards.

Research limitations/implications

This study emphasizes the importance of further investigating the potential role of the unorganized sector in fostering the transition to a CE in emerging economies.

Practical implications

The research provides useful policy prescriptions to regulators and insights to original tire manufacturers (OTMs) that enable the unorganized tire retreaders in India to contribute to the movement toward a circular supply chain (CSC).

Originality/value

This study is the first to systematically examine the unorganized sector to understand the barriers to CE. This study provides an original theoretical contribution by expanding the scope of stakeholder and institutional theories.

Role of Industry 4.0 in circular supply chain management: a mixed-method analysis

Purpose

The major purpose of this study is to investigate the role of Industry 4.0 in circular supply chain management (CSCM). The study also identifies variables that positively influence circular performance of a supply chain and examines the relationships among them.

Design/methodology/approach

This research uses a novel mixed-method exploratory methodology with sequential design. To understand the relationships among the enablers and the role of Industry 4.0 in circular performance of supply chain, a qualitative method (interpretive structural modeling) was utilized. Following the qualitative phase, a questionnaire based quantitative study was conducted and the hypothesized mediating relationships were evaluated through smart-PLS structural equation modeling tool.

Findings

The findings of interpretive structural modeling (ISM) model revealed the hierarchical relationships among the enablers of circular supply chain management based on their relative importance. The variables were clustered in three groups of driver, dependent and linkage variables. The results of the structural model indicated that Industry 4.0 play a mediating role between the driver and dependent variables that influence circular performance in a supply chain.

Practical implications

The research offers practical insights for supply chains moving in the direction of zero waste by highlighting the important variables that require actions from different stakeholders. The research also reveals the importance of integrating Industry 4.0 technologies in restorative and regenerative cycles of circular supply chain.

Originality/value

The originality of the research stems from the scarcity of research on circular supply chain management. The authors argue about the critical role that Industry 4.0 can play in achieving circularity in supply chains.

Circular economy performance measurements and blockchain technology: an examination of relationships

Purpose

This study proposes a systematic and comprehensive circular economy (CE) performance measure as an instrument to operationalize and quantify circularity. It seeks to evaluate the relative contribution of blockchain technology to evaluate various measures in this study. A general research agenda for investigating blockchain capabilities to performance assessment in CE is presented.

Design/methodology/approach

Empirical survey data from 32 CE and blockchain experts are collected to inform this study. Inductive reasoning, heatmaps, and a middle-range theory building approach are utilized to generalize theoretical patterns for blockchain support of CE performance assessment and measurement. A series of propositions are then developed as a middle-range theory for the true, false, perceptible, and hidden affordances of blockchain technology capabilities for CE performance measurement.

Findings

Overall, sixteen performance measures and metrics are identified and examined. The authors find most of these measures and metrics – based on literature and expert opinion – can be supported using blockchain technology capabilities. Four major blockchain capabilities, transparency and traceability, reliability and security, smart contracts, and incentivization and tokenization are shown to have varying potential support for CE performance assessment. There needs to be an evaluation of true, false, perceptible, and hidden affordances of blockchain technology capabilities for CE performance measurement in future studies.

Originality/value

Blockchain application for CE, and specifically performance measurements, is a new area. Research and practice evaluation on this issue is important but needs substantially additional investigation to help CE progress. This study provides a framework for evaluation and a foundation for future research at the nexus of CE, blockchain technology, and performance measurement.

Examining the impact of service recovery resilience in the context of product replacement: the roles of perceived procedural and interactional justice

Purpose

Given increasing customer expectations and disturbances to product returns management, capabilities such as supply chain resilience (SCR) can complement service recovery strategies in retail supply chains. This study utilizes procedural justice theory (PJT) to conceptualize service recovery resilience as a capability that allows firms to meet customer requirements when dealing with disruptions, and empirically investigates its impact on procedural and interactional justice and customer outcomes (i.e. satisfaction and loyalty) in the context of product replacement.

Design/methodology/approach

This research employs two scenario-based experiments using a sample of 368 customers to explore the outcomes associated with service recovery resilience.

Findings

The investigation shows more satisfied and loyal customers when a retail supply chain can overcome service recovery challenges through SCR. The study shows that customers evaluate not only the process itself, but also their interactions with the retailer. Specifically, procedural justice and interactional justice have a significant influence on these relationships.

Originality/value

This study proposes service recovery resilience as a concept that bridges service recovery theory with supply chain strategy in the unique context of product replacement. Further, this study also notes how information enhances customer satisfaction with the retailer's effort to address disturbances in the recovery process. Finally, this study informs managers on the capabilities needed to face new customers' needs.

Environmental collaboration with suppliers and cost performance: exploring the contingency role of digital orientation from a circular economy perspective

Purpose

To examine the interplay between sustainable supply chain management (SSCM) and circular economy, this research conceptualises and empirically tests an integrative framework of environmental information exchange with suppliers (ES), environmental product design (EPD) and cost performance (CP) with the contingency effect of digital orientation (DO). The associations proposed in the integrative framework provide a configuration of SSCM practices that support circular economy's restorative processes in the digital age.

Design/methodology/approach

The resource orchestration theory and contingency theory are used to investigate the mediation and moderating effects, which were tested by a moderated mediation analysis of survey data of 100 firms in Australia.

Findings

The results show that EPD fully mediates the relationship between ES and CP. Further, DO was found to moderate the relationship between EPD and CP, but not the relationship between ES and EPD.

Practical implications

The empirical findings of this study offer an effective SSCM practice configuration for firms seeking to target advanced circular business models and economic benefits. Managers should be aware that ES may not be enough to improve CP; EPD is a required mechanism to translate the ES benefits into cost superiority. Managers should also stimulate a DO culture to develop effective EPD capabilities, which leads to improved CP and a foundation for companies seeking to target circularity.

Originality/value

This study advances prior theoretical and practical knowledge. The authors propose and empirically test an integrated SSCM and circular economy model that incorporates mediation and moderation effects to clarify inconsistent findings in prior work, which provides a more holistic and practical understanding of SSCM practices in the digital context. Furthermore, the SSCM literature recommends the adoption of circular economy principles. The integrated model in this study provides a bridge between SSCM and circular economy.

Food supply chain waste reduction for a circular economy in the COVID-19 pandemic: a longitudinal study of New Zealand consumers

Purpose

Food waste (FW) reduction, of which household wastage comprises a large fraction, has an important role in promoting the circular economy (CE). This study investigates how certain consumer traits impact household FW, particularly in the face of external shocks.

Design/methodology/approach

The authors conducted a qualitative and longitudinal study, spanning three periods in New Zealand. A preliminary model is constructed from the outcomes of a survey with 178 participants. Then, the authors carried out 29 semi-structured interviews to refine the preliminary model and adapt it to the analysis of household waste behavior.

Findings

Different segments of consumers have distinct response patterns in successive lockdowns, and these patterns impact household FW reduction and food supply chain (FSC) management. The key findings include (1) for government, quick responses to quash unhelpful rumors help to reduce public concerns around FSC interruption; (2) for retailers, the pandemic has hastened the growth of online shopping; being able to expand the distribution channel in a short time is a critical issue; and (3) for consumers, the experience of lockdown has different impacts on different groups of consumers. This variation of experience may either enhance or exacerbate FW in households.

Originality/value

This paper complements the existing literature on the FSC and contributes to household FW and CE literature by providing a framework that integrates external impacts, consumer segmentation to reflect on waste management, and the possible applications of the proposed framework.

Core Elements Affecting the Circularity of Materials

The authors have revised the circularity of materials, which is essential to stimulate circular activity processes. The theoretical part starts with the revision of material circularity under linear and circular models, and answers to the question of how to use modern technologies to ensure the sustainable use of natural resources. Later on, the authors describe the material circularity in the concept of close-loop and open-loop production. Further on, the authors examine the recycling of different waste categories as an essential element necessary for the circularity, give the results of reviewing various sectors and present key elements affecting material circularity. The authors revised the set of variables and formed a correlation matrix and used a dynamic regression model to identify the circular material use rate. The authors suggested a three-level methodology that provided a dynamic regression model that could be applied for forecasting the size of circular material use rate in European Union countries. The empirical research results show that the key elements affecting the circularity of materials are private investments dedicated for recycling, the recycling of electronic waste and other municipal waste.

Digital technologies and circular economy in supply chain management: in the era of COVID-19 pandemic

This empirical study aims to identify the importance of Digital Technologies (DT) as an enabler in the Circular Economy (C.E.) based business model, especially during Covid-19. The concept of 'circular economy' has now been advocated as a methodology to stimulate economic growth in line with the environmental sustainability. Hence, the practices of recycling, reduction, reuse/re-manufacture, and repairing (4R's) are deemed to be the core of a circular economy. Recently, the advent of the pandemic Covid-19 has forced the nations of the world to resort to alternate resource use in their manufacturing and trading of goods and services as the supply chains have almost remained disrupted since Covid-19 appeared. We investigate the impacts of Covid-19 upon the use of technological innovation (T.I.), circular economy practices (CEP), and organizational performance (ORP) incorporating the Structural Equation Modeling (SEM). Our results show that Covid-19 significantly impacted the adoption of technological innovation, circular economy, which leads toward organizational performance. Moreover, the practices and operations under the circular economy framework also appear to influence organizational performance significantly. Our study findings bring forward meaningful insights into improving CEF-cum-technology based practices in developing and emerging markets in Asia, and convey significant implications for the business community, policymakers, and researchers.

Waste Management in a Sustainable Circular Economy as a Part of Design of Construction

The Architecture, Engineering, and Construction (AEC) industries are the producers of the most significant waste stream in the European Union. Known EU initiatives propose to deal with the issue of construction and demolition waste (CDW) according to the principles of a circular economy: the 3Rs (reduce, reuse, and recycle). CDW is generated during the whole life cycle of construction. The lack of information about the quantity of CDW during the design phase of building needed for sustainable design of construction was identified as a research gap. The aim of our research is to quantify construction and demolition waste during the construction design phase in a circular economy. The proposed method is based on the generation rate calculation method. This paper describes the proposed methodology for quantifying selected types of construction waste: excavated soil, concrete, and masonry. This information is essential from the point of view of a sustainable circular economy. The main contributions of the paper were identified during the decision-making process of sustainable building design, during the audit of CDW management, and during building information modelling as a support tool for CDW management. As early as the construction design phase, there is the possibility of choosing technologies, construction processes, and materials that have a higher degree of circularity in the economy.

HumOSCM for pandemic response

Purpose

Humanitarian organizations have faced the unprecedented consequences of the coronavirus disease 2019 (COVID-19) pandemic. In this article, the authors therefore discuss how epidemics and pandemics, specifically Ebola and COVID-19, have affected humanitarian operations and supply chain management (HumOSCM), and how HumOSCM has contributed to preparedness for and response to epidemics and pandemics. The authors present lessons learned from responses to Ebola and COVID-19.

Design/methodology/approach

For this study, the authors review the scholarly HumOSCM literature, use documentary evidence from practitioner literature and apply a theory synthesis approach to derive recommendations on how HumOSCM could strengthen future responses to epidemics and pandemics.

Findings

The conceptualizations highlight the importance of strengthening collaboration, capability and capacity for the response to epidemics and pandemics. Furthermore, the components that can enhance the degree of collaboration, and hence, response formation, are discussed.

Research limitations/implications

As a non-empirical article, it suffers from the limitations of conceptual research. Hence, empirical testing of the proposed framework is recommended. The framework and propositions can serve as a basis for future studies.

Practical implications

The conceptual framework can help humanitarian organizations and other actors in the humanitarian sector to better understand how to prepare for future responses to epidemics and pandemics, in particular by considering the components that enhance the degree of collaboration, as well as through capability development and capacity building.

Originality/value

This article begins a discussion of how HumOSCM should evolve to better respond to future epidemics and pandemics.

Facades-as-a-Service: The Role of Technology in the Circular Servitisation of the Building Envelope

The servitisation of the built environment, through the implementation of product–service systems, is considered a promising business strategy to achieve a circular economy transition. This servitisation faces a number of practical challenges, among them the technological readiness and effective integration and application of existing and emerging products, manufacturing processes, and digital monitoring and management tools. The research builds on targeted literature review, and on a research-through-design approach based on full-scale pilot projects developed in an ongoing feedback loop between researchers, planners, and industry partners representing both the demand and supply sides of the façade industry in the Netherlands. The paper analyses the technical implementation challenges currently preventing the façade industry from adopting performance-based contracts. It then proposes the roles that existing and emerging digital design and engineering technologies, manufacturing processes, and asset management systems can play in the development, implementation, and fulfilment of such contracts. The paper proposes a multi-stakeholder, systemic model for the development and application of façade technologies capable of overcoming many of the technical implementation barriers to the delivery of performance-based contracts for integrated facades. From this it concludes that an effective development of building technologies should strategically align with the solving of economic and contractual challenges such as circularity-readiness, profitability, risk distribution, legal demarcation, performance monitoring, and residual value stewardship. The resulting framework provides a strategic and conceptual basis for the development of circularity-enabling façade technologies, accounting for the diverse and sometimes conflicting interests of the multitude of stakeholders involved throughout a project’s lifecycle. The framework aims to support planners, manufacturers, and builders accelerate the circular deep energy renovation of the built environment while also exploring new business opportunities.

Investigating the effects of the outbreak of COVID-19 on perishable food supply chains: an empirical study using PLS-SEM

Purpose

At the end of 2019, the first case of the Corona Virus Disease (COVID-19) was reported in Wuhan city of China. The disease was declared a pandemic without imagining the magnitude of damage currently caused in all branches of the economy. One of the most affected sectors was food and mostly perishable food (PF), which are more susceptible to environmental conditions. Thus, the research examines the effect of the COVID-19 outbreak on Ecuador's perishable food supply chains (PFSCs) during the pandemic. It contributes to new results on the special issue (SI) PFSC response to event risk and uncertainty, such as those that generated the pandemic.

Design/methodology/approach

The data used are from primary information sources, which were collected through a questionnaire. The questionnaire was applied to 298 companies belonging to the sector, and later the information was processed through partial least squares structural equation model. The convergent validity, discriminate and robustness tests provide arguments for the suitability of the model. Therefore, the findings are reliable and valid for the adequate measures to improve the PFSC due to a COVID-19 outbreak.

Findings

The results show that the perception of personal risk (PPR) produced by COVID-19 has caused the companies of the PFSC to adopt preventive policies (PO) to avoid contagion and guarantee the operation of the companies. In addition, the PPR has been responsible for the alterations in the demand and price (DP) of PF. Next, PO and DP have a significant effect on PFSC, which shows the evidence favouring the malfunction of PFSC operations due to anti-contagion PO, the mismatch of DP. On the contrary, circular economy practices contribute to the excellent performance of the PFSC. Finally, the research suggests some policy implications to consider in improving the PFSC.

Originality/value

This study is the first to be carried out in Ecuador's country on the PFSC; its contribution is unprecedented and makes it a road-map to be considered to guarantee the correct functioning of the PFSCs, and it will provide policymakers with valid elements to design efficient PFSCs that better respond to unforeseen events and uncertainties. Future research will focus on analysing the management of PF consumption in Ecuador during the pandemic.

Forecasting sustainability of supply chains in the circular economy context: a dynamic network data envelopment analysis and artificial neural network approach

Purpose

The objective of this research is to put forward a novel closed-loop circular economy (CE) approach to forecast the sustainability of supply chains (SCs). We provide a practical and real-world CE framework to improve and fill the current knowledge gap in evaluating sustainability of SCs. Besides, we aim to propose a real-life managerial forecasting approach to alert the decision-makers on the future unsustainability of SCs.

Design/methodology/approach

It is needed to develop an integrated mathematical model to deal with the complexity of sustainability and CE criteria. To address this necessity, for the first time, network data envelopment analysis (NDEA) is incorporated into the dynamic data envelopment analysis (DEA) and artificial neural network (ANN). In general, methodologically, the paper uses a novel hybrid decision-making approach based on a combination of dynamic and network DEA and ANN models to evaluate sustainability of supply chains using environmental, social, and economic criteria based on real life data and experiences of knowledge-based companies so that the study has a good adaptation with the scope of the journal.

Findings

A practical CE evaluation framework is proposed by incorporating recyclable undesirable outputs into the models and developing a new hybrid “dynamic NDEA” and “ANN” model. Using ANN, the sustainability trend of supply chains for future periods is forecasted, and the benchmarks are proposed. We deal with the undesirable recycling outputs, inputs, desirable outputs and carry-overs simultaneously.

Originality/value

We propose a novel hybrid dynamic NDEA and ANN approach for forecasting the sustainability of SCs. To do so, for the first time, we incorporate a practical CE concept into the NDEA. Applying the hybrid framework provides us a new ranking approach based on the sustainability trend of SCs, so that we can forecast unsustainable supply chains and recommend preventive solutions (benchmarks) to avoid future losses. A practicable case study is given to demonstrate the real-life applications of the proposed method.

The challenge of remanufactured products: the role of returns policy and channel structure to reduce consumers' perceived risk

Purpose

While remanufactured products represent an increasingly researched phenomenon in the literature, not much is known about consumers' understanding and acceptance of such products. This study explores this issue in the context of the theory of perceived risk (TPR), investigating return policy leniency and distribution channel choice as potential factors to foster remanufactured products' sales.

Design/methodology/approach

This research utilizes an experimental design composed of a pre-test and a scenario-based main experiment to explore how return policy leniency might mitigate consumers' perceived risk and how their related purchase intention differs across two types of retail distribution channel structures (i.e. brick-and-mortar vs. online).

Findings

The investigation into the efficacy of return policy leniency within two retail distribution channel settings (i.e. brick-and-mortar vs. online) illustrates that providing a lenient return policy is an effective “cue” in increasing consumer purchase intention for remanufactured products. While prior literature has established that consumers value return policy leniency for new products, the authors provide empirical evidence that this preference also applies to remanufactured products. Notably, that return policy preference holds true in both channel settings (i.e. brick-and-mortar vs. online) under consideration. Additionally, and contrary to the authors’ predictions, consumers perceived remanufactured products sold via both channel settings as equally risky, thus highlighting that both are appropriate distribution channels for remanufactured products. Finally, while research on new products provides some initial guidance on consumer perceptions of quality and risk, the study provides empirical evidence into the difference of perceived risk with regard to new versus remanufactured products.

Originality/value

By employing the TPR, this research explored the role played by two supply chain management related factors (returns policy and channel structure) in reducing consumer's perceived risk and increasing purchase intention. In doing so, this study answers the call for more consumer-based supply chain management research in a controlled experimental research setting.