Drivers and approaches to the circular economy in manufacturing firms

Gusmerotti, Natalia Marzia; Testa, Francesco; Corsini, Filippo; Pretner, Gaia; Iraldo, Fabio

doi:10.1016/j.jclepro.2019.05.044

Cited by 268 publications

(186 citation statements)

References 78 publications

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“…Consequently, they envisioned a proactive sustainability approach. Our finding on the role of the top management supports the notion that firms that are led by environmentally conscious leaders are more likely to follow CE (Gusmerotti, Testa, Corsini, Pretner, & Iraldo, ).…”

Section: Discussionsupporting

confidence: 85%

Microfoundations of dynamic capabilities: Insights from circular economy business cases

2020

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Circular economy is a key strategy to achieve corporate sustainability. However, so far, most firms are unable to translate the concept of circular economy into their corporate strategies, business models, and operations. Some scholars have argued that firms need to develop new (and dynamic) capabilities for circular economy implementation. Yet there is a little discussion on how firms can develop such capabilities. Notably, there is a paucity of research on specific skills, processes, and organizational activities (microfoundations of dynamic capabilities) that may facilitate circular economy implementation. To address this knowledge gap, using a multiple‐case studies approach, we explore microfoundations of dynamic capabilities in successful circular economy business cases. Our findings indicate that dynamic capabilities positively contribute to circular economy implementation. Our case studies show that case firms identified circular economy opportunities by using four microfoundations of sensing capability. Further, case firms acted on the identified opportunities by using simultaneously three microfoundations of seizing capability and four microfoundations of reconfiguring capability. This paper contributes to the literature on the relations between dynamic capabilities and corporate sustainability by providing insights on how sensing, seizing, and reconfiguring dynamic capabilities act in successful operationalization of circular economy strategies.

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Section: Discussionsupporting

confidence: 85%

Microfoundations of dynamic capabilities: Insights from circular economy business cases

2020

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“…First, such research has considered justifications for companies embracing modes of circular value creation and offerings, focusing on motivational aspects, drivers, and opportunities of CBM innovation (such as enhancing competitiveness by increasing cost efficiency due to lower demand for energy and physical resource inputs; attracting new environmental-conscious customer segments; or becoming more autonomous and independence from volatile commodity markets, (Gusmerotti et al, 2019;Planing, 2018;Rizos et al, 2016;Rubel et al, 2018;Whalen et al, 2017) and the financial, organizational, market, and institutional risks and barriers of integrating CE principles into daily business routines (Linder & Williander, 2015;Sousa-Zomer et al, 2018;Tura, Hanski, Ahola, Stahle, Piiparinen, & Valkokari, 2019;Vermunt et al, 2019). Second, existing CE studies have explored the contours of CBMs, describing the constitutive elements of CBMs and their strategic design that can be summarized as conceptual debates (e.g.…”

Section: Introductionmentioning

confidence: 99%

Organizational transition management of circular business model innovations

2020

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Scholars and practitioners across fields increasingly recognize that business models for the circular economy may be an effective lever for solving ecological persistent problems such as climate change, biodiversity loss, and growing natural resource scarcity. Despite a growing interest in the potential of circular business models, interconnections between the organizational dimensions of firms and their business model innovation processes remain underexplored. Based on problem‐centered expert interviews with business consultants experienced in circular business development, this study creates a conceptual model that offers structured knowledge about why firms steadily reproduce linear BMs and how incumbents manifest themselves as a constant linear‐oriented value creation system. The model also demonstrates organizational conditions and management strategies that frustrate the reproduction of linear BMs and, thus, enable initial moves towards CBM innovation. Building on this, the article provides a set of propositions on how an organizational transition management may be configured and what incumbents require to successfully navigate circular business model innovation. The findings provide a foundation for a contemporary understanding of circular business model transition management, which simultaneously serve as impulses for future research investigations.

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“…According to a study by Moktadir et al (2018c), financial support can help motivate industrial decision-makers to implement sustainable manufacturing and circular economy practices for leather companies. A recent study conducted by Gusmerotti et al (2019) showed that economic driver is considerable for the implementation of circular economy in the context of manufacturing firms. It is confirmed from the study conducted by Pringle et al (2016) that financial support is essential for the leather industry because the industry involves complex technical operations for the recycling of waste materials produced from end-use or production process.…”

Section: Discussion and Managerial Implicationsmentioning

confidence: 99%

“…CE is a business concept that involves the further use of materials in a restorative and regenerative manner, thereby extending the utility and value of the materials (Gusmerotti et al, 2019;Rajput and Singh, 2019;Larsson, 2018;Sariatli, 2017). CE minimizes material consumption and reduces waste by generating value of the products.…”

Section: Circular Economymentioning

confidence: 99%

Circular economy practices in the leather industry: A practical step towards sustainable development

Moktadir

Ahmadi

Sultana

et al. 2020

Journal of Cleaner Production

157

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The concept of circular economy (CE), a recent popular global business trend, considerably minimizes waste and environmental pollution. However, studies exploring CE practices in the context of leather industry have been scant. To deal with this issue, this paper proposes a decision support framework for evaluating the challenges to CE practices in the context of leather industry. Best worst method, a generic decision support tool, is employed in the assessment process. The study findings reveal that "lack of financial support from authorities" is assigned the highest weight in the final ranking results. This indicates that the lack of financial facility poses a major challenge to the successful implementation of CE practices. The findings can assist industrial managers and authorities in taking the required actions to implement CE practices in the leather industry for the sustainable development of the leather sector.

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Drivers and approaches to the circular economy in manufacturing firms

Cited by 268 publications

References 78 publications

Microfoundations of dynamic capabilities: Insights from circular economy business cases

Microfoundations of dynamic capabilities: Insights from circular economy business cases

Organizational transition management of circular business model innovations

Circular economy practices in the leather industry: A practical step towards sustainable development

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