How does servitisation affect supply chain circularity? – A systematic literature review

Sustainable Circular Economy Strategies: An Analysis of Brazilian Corporate Sustainability Reporting

Corporate Sustainability Reporting provides essential data for academic and empirical research on sustainability and the still-growing adoption of the circular economy by companies. Despite the wide attention that the circular economy receives from the academy, a systematization and hierarchy of the strategies that embrace the sustainable circular economy are still necessary. In addition, there is a limitation of research on the analysis of Corporate Sustainability Reporting in emerging economies. In this study, fifty sustainable circular economy strategies emerged from a systematic literature review, arranged among nine categories. The differential of the identified strategies is the expansion of strategies for a sustainable circular economy vision. Then, 51 Corporate Sustainability Reporting from 17 multinational companies operating in Brazil in 2016, 2018 and 2020 were analyzed to identify companies’ adoption of these strategies. The Corporate Sustainability Reporting analysis results suggest that companies operating in Brazil are directing significant efforts toward a sustainable circular economy. Based on these two results and the theory of business process management, we proposed the Business Process for Sustainable Circular Economy framework.

Case Study Research to Foster the Optimization of Supply Chain Management through the PSS Approach

The optimization of a product’s whole life cycle has become a mandatory task for manufacturers seeking to deal with circular economy requirements while gaining competitiveness in the market. In order to achieve such a sustainability goal, alignment of production, distribution, and field service activities is needed. In the literature, numerous studies indicate the product–service system (PSS) approach as one of the most promising business models to combine the needs of manufacturers and customers in an efficient and effective manner. However, PSS solutions aimed at practically optimizing supply chain management have scarcely been addressed. In order to reduce this gap, the current study proposes a procedure based on the PSS Functional Matrix, the Screening Life Cycle Modelling (SLCM) method, and stock management theory to optimize aftermarket services based on market demand. A case study in the medical equipment sector, where market demand can fluctuate during the contract period, is presented. The analytical results show beneficial effects in terms of both costs and environmental impact, suggesting the need for further research to augment knowledge on PSS and supply chain management. In particular, the PSS allowed the company to customize the manufacturer’s business model, adapting the supply of aftermarket services to varying customer needs.

The Dutch Green Deals Policy and Its Applicability to Circular Economy Policies

This study investigates the applicability of the Dutch Green Deals policy instrument for use in projects that help the transition towards a Circular Economy in the Netherlands. Green Deals provide an opportunity for firms, NGOs, universities, and provincial, municipal, or waterboard governments to sign an agreement with the national government to take away barriers for a Circular Economy related innovation. Quantitative and qualitative content analysis has been performed, categorizing all green deals as being related to Circular Economy and those are further categorized thematically and analytically. A total of 50 relevant Green Deal agreements are selected for quantitative and qualitative content analyses that cover 9 themes, 20 industry classifications, and 10 types of action undertaken, being particularly popular in the biobased economy and construction industry. The policy instrument is believed to be successful in addressing a variety of barriers and as useful in strengthening national innovation systems, thus, it can be recommended for application in other countries. The instrument does lack clear policy indicators and would benefit from explanatory reviews with each agreement. Future research could compare this policy instrument to similar instruments employed in other EU countries and developing countries, the potential role of green financing for such green deal agreements should also be considered.

Leveraging blockchain technology for circularity in agricultural supply chains: evidence from a fast-growing economy

Purpose

The authors originally explore the factors for blockchain technology (BCT) adoption in agricultural supply chains (ASCs) to enhance circularity and understand the dependencies, hierarchical structure and causalities between these factors.

Design/methodology/approach

Based on an extant literature review and expert opinion, the present study identified ten enablers for adopting BCT to leverage the circular economy (CE) practices in the ASCs. Then, using an integrated interpretive structural modeling and decision-making trial and evaluation laboratory (ISM-DEMATEL) approach, hierarchical and cause–effect relationships are established.

Findings

It was observed that traceability is the most prominent enabler from the CE perspective in ASCs. However, traceability, being a net effect enabler, will be realized through the achievement of other cause enablers, such as seamless connectivity and information flow and decentralized and distributed ledger technology. The authors also propose a 12 Rs framework for enhancing circularity in ASC operations.

Research limitations/implications

The paper identifies enablers to BCT adoption that will enhance circularity in ASC operations. The ISM hierarchical model is based on the driving and dependence powers of the enablers, and DEMATEL aids in identifying causal relationships among the enablers.

Practical implications

The study's findings and proposed 12 Rs framework may help the practitioners and policymakers devise effective BCT implementation strategies in ASCs, thereby empowering sustainability and circularity.

Originality/value

This study enriches the literature by identifying and modeling enablers for BCT adoption in ASCs. The study also proposes a new 12 Rs framework to help enhance ASC circularity.

Towards a Conceptual Development of Industry 4.0, Servitisation, and Circular Economy: A Systematic Literature Review

Industry 4.0 (I4.0) technologies have been highlighted in recent literature as enablers of servitisation. Simultaneously, businesses are advised to implement a circular economy (CE) to bring new opportunities. However, it is pertinent to mention that little attention has been given to assess the role of I4.0 in adopting the CE and servitisation in a fully integrated manner. This research fills this gap by developing a conceptual framework through a systematic literature review of 139 studies investigating the relationship between the I4.0, CE, and servitisation. This study identifies the impact of these variables on a firm’s operational and financial performance (revenue stream, growth, and profitability). Our research findings advocate that adopting I4.0 technologies to the business and manufacturing model enables sustainability, energy and resource efficiency while enhancing performance and offering innovative products through smart services. Thus, firms must systematically adopt I4.0 technologies to support a CE model that creates value through servitisation. This study identifies the research gaps that are unexplored for practitioners and future researchers while providing insight into the role of I4.0 in implementing CE in the servitisation business model.

The Need for New Product Development Capabilities from Digitalization, Sustainability, and Servitization Trends

Apparent from the latest pandemic, the dynamics and rate of change in society accelerate on a global scale. Ongoing mega-trends in society, such as digitalization, sustainability, and servitization, fundamentally changes the conditions for manufacturers when developing and providing new products. This study clarifies the combined impact and consequences on product development capabilities in manufacturing firms of the three mega-trends: (i) digitalization, (ii) sustainability, and (iii) servitization. The research is based on a pre-study, complemented with a semi-structured interview study at small, medium-sized, and large Swedish-based manufacturing companies, and a systematic literature review. The research makes evident that the main challenge is to empower engineers and development teams to model, present, evaluate, and develop expected and smart digitalized solutions in a time-limited environment and prioritize the most resource efficient and sustainable solution. Therefore, four complementary support resources are suggested: (i) a knowledge management platform, (ii) a data management platform, (iii) a set of criteria and metrics measuring progression, and (iv) support methods and tools to define, model, and evaluate solutions. When integrated into a digital platform, developers can simultaneously access and process the necessary information needed for sustainable, digitalized, and servitized solutions.

Understanding the role of employees in digital transformation: conceptualization of digital literacy of employees as a multi-dimensional organizational affordance

Purpose

Much of recent academic and professional interest in exploring digital transformation and enterprise systems has focused on the technology or the organizations' external forces, leaving internal factors, in particular employees, overlooked. The purpose of this paper is to explore digital literacy of employees as an organizational affordance to capture contextual factors within which digital technologies are situated and are used.

Design/methodology/approach

We used the evidence-based practice for information systems approach, and undertook a systematic literature review of 30 papers coupled with brainstorming with 11 professional experts on the neglected topic of digital literacy and its assessment.

Findings

This paper draws upon affordance theory, and develops a novel framework for conceptualization of digital literacy of employees as an organizational affordance. We do this by distinguishing digital literacy at the individual level and organizational level, and by assessing digital literacy through Information/Cognitive and Social Practice/Articulation affordances.

Research limitations/implications

The current paper contributes to the notion of organizational affordances by examining the effect of interactions between employee-technology through digital literacy of employees in using digital technologies. We offer a novel conceptualization of digital literacy to improve understanding of the role of employee in digital transformation and utilization of enterprise systems. Thus, our definition of digital literacy offers an extension to the recent discussions in the IS literature regarding the actualization of affordances by bringing a lens of employees into the process.

Practical implications

This paper operationalizes digital literacy at organizational and individual levels, and offers managers a high-level tool to assess digital literacy of their employees. By doing so, managers can achieve the fit between employees' capabilities and digital technologies that will improve affordance actualization and support their digital transformation initiatives.

Originality/value

The study is one of early attempts to apply and extend affordance theory on digital literacy at organizational level by not limiting the concept to the individual level. The proposed framework improves the communication among researchers and between researchers and practitioners.