Enabling Factors and Strategies for the Transition Toward a Circular Economy (CE)

Hierarchical analysis of barriers to circular business models in the recycling industry

Circular business models in manufacturing, especially in the recycling industry, face many barriers that need to be managed and mitigated for successful business implementation. Therefore, this study aims to analyse the hierarchy of the main barriers to the implementation of circular business models in the recycling industry and evaluate strategies to overcome them. To achieve this goal, we first conducted a systematic literature review on barriers to implementing circular business models. Second, barriers were prioritized through a survey followed by an expert focus group. Building on these steps, we used interpretive structural modeling combined with a 'matrix of cross-impact multiplications applied to classification' to identify the hierarchy among barriers and describe their interdependencies. As key findings, 10 barriers were prioritized through a survey to identify the most important barriers for the recycling industry. The hierarchy of these barriers highlights regulation and government incentives as the most important, followed by those related to supply chain collaboration and lack of material flow indicators. Finally, internal barriers appear as high investments and associated risks. Finally, we suggest strategies to overcome these barriers based on their hierarchy. The implications of this study provide a proposal of strategies for implementing circular business models in the recycling industry, derived from the hierarchical correlation among the barriers, and can be applied in different regions through expert opinion assessment.

Circular economy strategies: a fuzzy DEMATEL decision framework for the fast fashion footwear manufacture

The fast fashion industry significantly impedes sustainability by its rapid production cycles, low-cost products, and heavy carbon footprint. Nowadays, circular economy (CE) has become an interesting concept, which follows the “take-make-dispose” model and allows products, materials, and resources to be in use as long as possible. There is a paucity of research in the identification of circular economy strategies (CES) and mapping them based on their interrelationships, which is very important from a managerial perspective. In this vein, this study identifies nine CES and analyzes their causal relationships using the Fuzzy Decision-Making Trial and Evaluation Laboratory method in the context of fast fashion footwear manufacture. The key contributions include providing actionable insights for implementing CE practices, enhancing the sustainability of the footwear industry, and offering a strategic roadmap for industry stakeholders. The results and implications of this study will guide footwear industry decision-makers in making a strategic map considering the cause-and-effect interrelationships among the CES for implementing CE business practices in the footwear industry.

Circular Economy in the Construction Industry: A Step towards Sustainable Development

Construction is a resource-intensive industry where a circular economy (CE) is essential to minimize global impacts and conserve natural resources. A CE achieves long-term sustainability by enabling materials to circulate along the critical supply chains. Accordingly, recent research has proposed a paradigm shift towards CE-based sustainability. However, uncertainties caused by fluctuating raw material prices, scarce materials, increasing demand, consumers’ expectations, lack of proper waste infrastructure, and the use of wrong recycling technologies all lead to complexities in the construction industry (CI). This research paper aims to determine the enablers of a CE for sustainable development in the CI. The system dynamics (SD) approach is utilized for modeling and simulation purposes to address the associated process complexity. First, using content analysis of pertinent literature, ten enablers of a CE for sustainable development in CI were identified. Then, causality among these enablers was identified via interviews and questionnaire surveys, leading to the development of the causal loop diagram (CLD) using systems thinking. The CLD for the 10 shortlisted enablers shows five reinforcing loops and one balancing loop. Furthermore, the CLD was used to develop an SD model with two stocks: “Organizational Incentive Schemes” and “Policy Support.” An additional stock (“Sustainable Development”) was created to determine the combined effect of all stocks. The model was simulated for five years. The findings show that policy support and organizational incentive schemes, among other enablers, are critical in implementing a CE for sustainable development in CI. The outcomes of this study can help CI practitioners to implement a CE in a way that drives innovation, boosts economic growth, and improves competitiveness.

Maturity Model as a Driver for Circular Economy Transformation

The movement of manufacturing organisations towards a circular economy sets the scene for extensive industrial change. This change is not simply a continuation of current business; instead, it brings up multiple questions concerning ways of thinking, modes of operation, and the very foundation of a business. Manufacturing organisations are experiencing uncertainty regarding how to address this transformation due to its multi-faceted nature. Maturity models are seen by some as a tool for assessing and guiding manufacturing organisations when it comes to complex and multi-faceted agendas, such as that of the circular economy (CE). Maturity models provide scaffolding in the form of presentation of a desired evolution path from which manufacturing organisations can define reasonable and desirable plans for engagement with the circular economy. This study adopts the cumulative capability perspective in developing a CE maturity reference model that explicates the circular transformation by noting six discrete maturity levels across six organisational dimensions: value creation, governance, people and skills, supply chain and partnership, operations and technology, and product and material. The progression of circular maturity is explained by the principles of expertise and the systems perspective. The explication of CE transformation across dimensions and levels provides a boundary object for organisations, i.e., a scaffolding for moving from its current zone of development to its proximal zone of development.

Qualitative analysis on the driving force behind upcycling practices associated with mobile applications: Circular economy perspective

Upcycling is a type of practice included within the circular economy. Although interest in this type of activity has grown in recent years, academic analysis of the drivers that impel these activities is poorly developed. This work focuses on upcycling activities developed in the context of rural tourism. Through field work based on structured interviews applied in the region of Andalusia (Spain), evidence was sought about the drivers that promote this type of practice. In particular, attention was paid to the role of mobile applications as facilitators of upcycling. The main finding was that technology helps in using upcycling practices when considering rural tourism, as demonstrated by the use of mobile applications and websites such as Wallapop. There was also evidence of the different factors that drive the development of upcycling practices: the existence of a traditional social network as a means of obtaining second-hand items, technology as an element that facilitates access to items owned by strangers, the need to offer the image sought by tourists, and a desire to maintain the cultural essence of the region.

Circular Economy Business Models for the Tanzanian Coffee Sector: A Teaching Case Study

One of the major issues the agri-food supply chains is the considerable production of by-products, which are mostly discarded as wastes and dangerously landfilled. This problem is particularly acute in the coffee supply chain: coffee cultivation generates by-products and in quantities which are potentially dangerous for the environment. A circular economy business model aimed at the recovery of these by-products may represent an interesting solution in terms of environmental, social, and economic sustainability. The goal of this paper was to provide teachers and educators with case material on circular business models that can be used for problem-based learning and case-based learning activities. The proposed case was built to address a real-world problematic situation related to the coffee supply chain. From a theoretical point of view, this study contributes to the literature on circular economy business models by providing a case study developed in the context of a developing country. Furthermore, the research entails practical implications since it shows managers and startuppers how to map a circular business model in all its components under the guidance of a conceptual framework.

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.

Circular economy indicators and levels of innovation: an innovative systematic literature review

Purpose

This article aims to analyze the specific indicators of the circular economy (CE) in terms of analytical aspects, scope and breadth of metrics and levels of innovation associated with CE.

Design/methodology/approach

A literature review was developed with a sample of 125 articles, extracted from Scopus, Web of Science, ScienceDirect, Emerald, Google Scholar, Online Library, Sage, Springer, Taylor and Francis and JSTOR databases.

Findings

The results indicate the lack of integration of the social dimension and predominance of environmental indicators, lack of indicators for the meso level and concentration of metrics for the product level. Methodological criteria of validity and reliability for measurement studies are recommended, as well as paths and proposals for future research in the CE.

Research limitations/implications

The study’s limitations are linked to the content and method aspects. Although the search was performed in several databases, with a significant number of articles returned compared to other reviews of the topic, the possibilities are limited by the data source and the impossibility of a broader review. The theme is not yet consolidated and this affects the linearity of the revised results. As for the method, the analysis and coding in systematic reviews involve the authors’ capacity for exploration and cognition.

Practical implications

The article proposes six theoretical propositions and the theoretical framework that portrays the main findings of the study and questions to drive future research in the topic.

Social implications

The article points out opportunities for companies, universities and the government regarding the possibilities that can be explored to develop knowledge and practice about the field.

Originality/value

This research advances the CE literature by means of providing a review of the indicators, metrics and tools oriented toward the CE literature that contributes to the improvement and consolidation of the various researches in the field.

A Virtuous Circle? Increasing Local Benefits from Ports by Adopting Circular Economy Principles

As ports seek to maintain support for their operations amidst growing environmental awareness and social pressure, it is important they provide benefits for the local population to offset negative impacts. Ports can add additional economic benefits for the cities they are located in by encouraging maritime clusters, industrial development, a circular economy, and waterfront development. The current level of adoption, interest in future adoption, barriers to implementation, and attitudes towards the views of the local population were assessed via an online questionnaire sent to port authorities in 26 countries. The potential and willingness of ports to be on the frontline of the transition to a circular economy globally has been clearly identified for the first time, seeing a 60% increase between current levels of adoption and future interest in adoption. Barriers to a circular economy are comparable to barriers to widely adopted methods, such as industrial development and a waterfront economy. It is likely that circular economy activities in port cities will add additional local benefits and reduce the negative impacts of a port. A new framework is proposed to help ports and cities collaborate and encourage greater adoption of the circular economy.

Drivers to implement the circular economy in born-sustainable business models: a case study in the fashion industry

Purpose

This study aims to identify the drivers for adopting the circular economy (CE) in a born-sustainable business of the fashion sector.

Design/methodology/approach

An exploratory case study was carried out with a unique and relevant case: the only Brazilian company implementing circularity practices defined through a sectoral commitment, the 2020 Circular Fashion System Commitment.

Findings

From an analysis of the literature, a theoretical scheme composed of internal and external drivers is proposed. In the case studied, there is a prevalence of internal drivers that led the company to implement the CE. Most of the internal drivers described by the literature were identified in this research, except for two: profitability and available technology. Regarding the external drivers, of the 12 listed, only laws and regulations were identified. Thus, the results suggest that internal drivers are more numerous and may be more prominent than external ones for CE adoption in the born-sustainable business.

Research limitations/implications

Due to its exploratory design and unique case study, the research does not allow generalizations, suggesting replication with a larger number of companies and carrying out quantitative research with born-sustainable companies and incumbent companies, for comparison. Considering that there is a difference between companies that decide for sustainable practices and companies that were already born sustainable, it can be questioned if the drivers for implementing CE for both companies are also different.

Originality/value

This study proposes a theoretical scheme that indicates the main internal and external drivers for companies' CE implementation. Developed from a literature review and applied in an empirical case, this scheme is comprehensive and can be adopted to analyze companies of different sizes and industries. Hence, this paper generates new perspectives for CE literature.

Analysis of barriers to circularity for agricultural cooperatives in the digitalization era

Purpose

This study aims to propose a novel framework for barriers to circularity within cooperative supply chains. The barriers in the adoption and implementation of circular economy principles are examined within a framework.

Design/methodology/approach

Fuzzy best-worst method is used to calculate the weights of barriers and identify the prioritization of barriers to circularity within cooperative supply chain.

Findings

“Insufficient implementation of circular economy laws” was found as the most important barrier, followed by “Lack of information”, “Ineffective recycling policies”, “Lack of awareness for circular economy”, “Remanufacturing is a labor-intensive procedure”, “Inconsistent price policies in sources and products”, “Lack of environmental management system”, “Cost of implementation for green activities” and “Lack of R&D capability” barriers, respectively.

Research limitations/implications

The number of participant professionals limits the conclusions of the study and reaching more general conclusions. A comprehensive research can be conducted by the participation of a greater number of professionals.

Originality/value

Several studies analyzed the barriers to circularity; however, to the best of the authors' knowledge, no study has been taken an approach for barriers to circularity for cooperatives or cooperative supply chains.

Driving the Transition to a Circular Economic Model: A Systematic Review on Drivers and Critical Success Factors in Circular Economy

The circular economy (CE) is arising as a novel economic system that is restorative by design. In light of its capability to boost sustainable economic development and to cope with environmental challenges, it has recently attracted increasing attention from academics, practitioners, policymakers, and intergovernmental organizations. Despite the wide speculation on this issue, the scientific literature lacks a wide-ranging, systematic, and updated identification and classification of the main drivers and Critical Success Factors of CE initiatives, which appears increasingly necessary to facilitate future scientific work, practical implementations, and policy guidelines. With this aim, this paper develops a systematic literature review by starting with over 400 manuscripts. A final set of 55 selected papers was selected for singling out and classifying drivers and Critical Success Factors in the CE context. The results may provide clear indications for further research, may help business organizations in evaluating CE initiatives, and may guide policy makers in developing and refining CE normative frameworks.

Statistical Evaluation of the Level of Development of Circular Economy in European Union Member Countries

In this paper, we have analysed the level of advancement in circular economy (CE) in the EU-28 countries. First, we used a synthetic measure to examine CE advancement in EU countries in each of the Eurostat CE distinguished areas, i.e., production and consumption, waste management, secondary raw materials, and competitiveness and innovation. For the empirical analysis, we applied 17 Eurostat indicators to the CE areas. To find the synthetic measure in 2010, 2012, 2014 and 2016, we used multidimensional comparative analysis, i.e., a zero unitarisation method. Second, based on the synthetic measures of the CE areas, we created a general synthetic measure of the CE advancement of the EU-28 countries as well as the countries’ rankings. Third, we classified the countries into groups according to their level of advancement in CE, i.e., high level, medium–high level, medium–low level and low level groups. Finally, we applied a similarity measure to evaluate the correlation between obtained rankings in two most extreme moments in the period of analysis (2010, 2016). Our analysis covers all EU member states, as well as “old” and “new” EU countries separately. Our results confirm that highly developed Benelux countries, i.e., Luxembourg, the Netherlands and Belgium, have the highest CE advancement level. Malta, Cyprus, Estonia and Greece are the least advanced in CE practice. Apart from that, on average, there is some progress in CE implementation, significant disproportions between the EU countries were observed, especially among the “new” member states.

How Circular Are the European Economies? A Taxonomic Analysis Based on the INEC (Index of National Economies’ Circularity)

In this paper, the aggregate index of national economies’ circularity (INEC) was proposed and empirically verified. For this purpose, the taxonomic linear ordering method was used, which is a multi-criteria decision-making procedure. This method replaces the analysis of the phenomenon described by a set of indicators with an analysis using one aggregate indicator: the so-called ‘synthetic metric’. Based on 14 circular economy indicators that are available in the Eurostat database, the circularity indexes were constructed for 24 EU countries (including the United Kingdom). This allowed the author, on the one hand, to create a ranking of the countries, and on the other, to assign them to four groups, which were characterized by a similar level of circularity. This paper attempts to answer the following questions: how circular are the European economies? What are the main challenges in achieving circularity in Europe? Taking into account the INEC range [0,1], it should be noted that the level of circularity in the analysed European countries is low (an average of 0.3021). Therefore, the paper indicates the areas requiring improvement in this respect.

Main Dimensions in the Building of the Circular Supply Chain: A Literature Review

Circular economy is an alternative to the traditional production model and has therefore attracted a great deal of attention from researchers. The change in the production system is accompanied by new logistical needs related both to resources and waste and to the distribution and recovery of products. The circular supply chain involves return processes and the manufacturer intends to capture additional value in the supply chain. In this paper, value chains have been mapped to visualize the links and interactions between the different stages and actors to understand the complexities of these systems and to make informed decisions. For this reason, and based on thorough literature review, the final objective of this work is to achieve a conceptual framework to study circular supply chain, which uses the main theoretical perspectives in strategic management literature. Four dimensions have been identified to support the development of these new supply chains—greater intensity in the relationships established in the supply chain, adaptation of logistics and organizational, disruptive and smart technologies, and a functioning environment. It can be concluded that to develop a new relationship capacity will allow for reaching more frequent, closer relationships with more actors. These relationships will be developed within an adapted organizational and logistical framework that is framed in new business model archetypes. However, dimensions related to the business environment such as sectoral, legislative, and fiscal frameworks must be incorporated.

Circular Economy for Clothes Using Web and Mobile Technologies—A Systematic Review and a Taxonomy Proposal

Nowadays, it is possible to buy clothing using online platforms, either by accessing online brand stores, general online stores or circular economy platforms. This paper presents a study on mobile applications that support online commerce for clothing, focusing on the review of the mobile applications with features that are characteristic of the circular economy paradigm. Findings include the fact that almost all the mobile applications analysed have pictures illustrative of the clothes and accessories that are available for trading as well as their brief description. Furthermore, this paper presents a study of various scientific articles about the circular economy of clothes and how it can be beneficial to the future of the environment. It is a junction with a Web platform for its growth and its disclosure. The paper builds conclusions upon the assumption that the circular economy is a growing business that is part of a sustainable development where the main goal is to reduce the environmental impact. The paper proposes the analysis of an innovative taxonomy of mobile applications about the circular economy.

Managing the Introduction of Circular Products: Evidence from the Beverage Industry

The aim of this paper is to study what managerial practices companies follow and implement in their business model to manage the introduction of Circular Products. Extensively screening extant literature in the field, we clustered a set of relevant managerial practices in four main principles of Circular Economy (CE) adoption at the product level: (i) Energy efficiency and usage of renewable sources of energy; (ii) Product and process optimisation for resource efficiency; (iii) Product design for circularity; (iv) Exploitation of waste as a resource. Then, the adoption of these principles was tested on two companies (and three Circular Products) operating in the beverage-packaging industry, where the adoption of CE is further challenged by the fact that packaging is necessary to deliver the product to consumers, but the majority of the one-way packaging is discarded after use. The identified principles provide general objectives in terms of end goals that should be achieved in order to adopt CE and manage the introduction of Circular Products. This paper shows a practical implementation of these principles on real empirical cases for theory-testing scopes.

Dimensional Stability and Process Capability of an Industrial Component Injected with Recycled Polypropylene

The usage of recycled polymers for industrial purposes arises as one of the most promising methods of reducing environmental impact and costs associated with scrapping parts. This paper presents a systematic study of the dimensional stability of a raw and 100% recycled polypropylene subjected to realistic environmental conditions occurring along its working life. The component studied is an internal part of an induction hob assembly. Industrial samples manufactured with both materials, in the same mold, and in the same injection machine, are subjected to ejection conditions, storage conditions (50 °C), and extreme performance conditions (80 °C). Induced dimensional changes are registered and analyzed using a coordinate measuring machine, and a tactile sensing probe. To verify the process capability of the samples manufacturing, C_p and C_pk values are calculated to evaluate the suitability of the recycled material as an alternative. Results conclude that, although the use of recycled material implies slight differences in terms of dimensional stability due to the changes induced in the polymer structure, these differences are not significant enough to affect the injection process capability. Therefore, recycling arises as one effective method to reduce both overruns associated with the consumption of raw polypropylene material and its environmental impact.

A Proposed Index of the Implementation and Maturity of Circular Economy Practices—The Case of the Pulp and Paper Industries of Portugal and Spain

High industrial development, new consumption habits, and population growth have led to a discussion, in the various sectors of society, about resource scarcity, pollutant emissions, and waste generation. As a result, and in opposition to the linear economic model in which products are eliminated after production and consumption, a new business model emerged, called the “The Circular Economy”. This model is based on reuse, recovery, recycling, and repairing during the design and use cycle of a product. This research intends to make a study of the circular economy in the pulp and paper industries of Portugal and Spain. This sector was chosen because, in addition to representing about 2.5% of Portugal’s industrial production, it has made significant efforts to promote environmentally sustainable development. Therefore, this research intends to present the situation of the pulp and paper sector within the circular economy, making an Iberian comparison between the years 2011 and 2015. This comparison is made through the development of a comparative index based on the results of some environmental indicators. According to the research carried out, the pulp and paper sector in Portugal was about 26% higher in the implementation of the circular economy than the same sector in Spain in 2015, with the peculiarity that this difference has been decreasing in the last five years.

Product-Service System Business Modelling Methodology Using Morphological Analysis

This study aims to establish a structured business modelling methodology for successful implementation of Product-service system (PSS). The morphological analysis is applied in investigating the possible patterns of the PSS business model. To systematically collect the business model patterns, we have collected a set of predefined building blocks which can be used in business modelling. These building blocks are collected through investigation of actual PSS business model cases. By mixing and matching various building blocks, various innovative business model alternatives can be designed. To demonstrate our morphological chart, real case example of hair dryer company is illustrated. Moreover, we introduce a web-based system, which supports our business model idea generation procedure using morphological chart.

Environmental Factors and Sustainability of the Circular Economy Model at the European Union Level

In this paper, we develop a methodology for studying the sustainability of the circular economy model based on environmental factors. In open-end systems, waste is converted back to materials and objects through recycling; hence, a linear economy is transformed into a circular economy. Environmental factors support an argument for the sustainable implementation of a circular economy. As humans are producing and using more and more matter and energy for the economy, the environment and recycling become more and more important factors affecting public health. The aim of this study is to present the economic factors of the sustainable development of a circular economy, based on the findings of the economic literature in the field. Starting with the Mankiw–Romer–Weil model of economic growth based on resource productivity, environmental employment, recycling rate and environmental innovation, three statistical hypotheses were validated through a panel data model with the use of the statistical software EViews 9. An econometric analysis was performed for 27 European Union countries between 2007 and 2016. The results highlight that the extended Mankiw–Romer–Weil model is determined by resource productivity, environmental employment, recycling rate and environmental innovation. Investing in recycling infrastructure and innovative resources is essential for the econometric model presented in our analysis, which is in line with the aims of environmental protection and sustainable economic growth.