Evaluation of the Applicability of the Circular Economy and the Product-Service System Model in a Bearing Supplier Company

Chiarot, Christian; Ordóñez, Robert Eduardo Cooper; Lahura, Carlos

doi:10.3390/su141912834

Cited by 5 publications

(3 citation statements)

References 48 publications

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“…In the initial stages of transformation, many companies prioritize the enhancement of intra-corporate processes that are not reliant on external stakeholders, as this represents the first step toward integrating the principles of the circular economy. Changes in the business models are rarely implemented up to now, because the prerequisites are not given (Chiarot et al, 2022). Austrian manufacturing companies try to eliminate inefficiencies in use of material and energy in production lines, and also close internal circular loops to avoid or reuse production waste (Schöggl et al, 2022).…”

Section: Analysis and Discussion Of The Survey Resultsmentioning

confidence: 99%

Challenges on the way to a circular economy from the perspective of the Austrian manufacturing industry

Holly,

Kolar,

Berger

et al. 2023

Front. Sustain.

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Circular economy has become a prominent topic in scientific discourse and has gained significant presence as a strategic factor for business and industry. Both, as crucial enabler of a sustainable economy, and as lever for overcoming resource dependencies. Previous studies have identified multiple benefits of implementing circular principles, as well as enablers for a transformation to circular economy. However, studies with a focus on a specific industry and regional context that offer practical guidance for the transformation to a circular economy are still somewhat underrepresented. This paper addresses this gap by analyzing major obstacles to a transformation to circular economy, in the context of the Austrian manufacturing industry. It is based on a literature review, in which 369 articles were reviewed, complemented by a structured online survey in which 229 managers from 192 companies in the manufacturing industry participated. In the survey, the obstacles were ranked according to their relevance on two levels: assessing 10 clusters of obstacles on a higher level, followed by a deep-dive evaluation of specific obstacles within the clusters. Based on the research findings, it is evident that the circular economy plays a significant role in long-term corporate success and most surveyed companies recognize its strategic importance. The results also reveal that market and customer demand are the biggest drivers of a transformation to circular economy, followed by general concerns about the environment and regulatory pressure. The biggest barriers on the way toward circular economy are the need for more financial government support, challenges with setting up an effective circular supply chain, economic challenges resulting from customer behavior and barriers in the redesign of products. The interdisciplinarity of the challenges leads to a high complexity in the transformation process. This means that most of the major barriers are external, and therefore companies cannot tackle these barriers by themselves. Governments should consider developing more incentive systems to support companies in their transition to the circular economy. To effectively navigate the transition, companies should adopt integrated strategies that encompass supply chain optimization, in-depth analysis of customer buying behaviors, and investment in sustainable and recyclable product design.

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Section: Analysis and Discussion Of The Survey Resultsmentioning

confidence: 99%

Challenges on the way to a circular economy from the perspective of the Austrian manufacturing industry

Holly,

Kolar,

Berger

et al. 2023

Front. Sustain.

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show abstract

“…According to (Villani 2021), various factors can change the values of the index of external financial dependence, and that stability finds less empirical support. To evaluate the circular economy model of a manufacturing company, according to (Chiarot et al 2022), the reuse and recycling of material should be reduced by focusing on optimizing the performance of assets and helping to improve the sustainable performance of machinery and equipment. According to (Han et al 2020), a business in a circular economy must be flexible to market changes in response to changes in technology, economy, and environment to achieve sustainability of profit.…”

Section: Literature Reviewmentioning

confidence: 99%

Investigating Accounting Factors through Audited Financial Statements in Businesses toward a Circular Economy: Why a Sustainable Profit through Qualified Staff and Investment in Technology?

Lulaj

Dragusha

Hysa

2023

Administrative Sciences

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This study examines the investigation of accounting factors through audited financial statements in businesses by analyzing the qualified staff and investment in technology for sustainable profit. Therefore, the main goal is to analyze whether qualified staff and investment in technology affect the sustainability of profit in businesses through the investigation of accounting factors in the audited financial statements toward a circular economy, more specifically in these financial items: total assets (TASS), and intangible assets (IASS), total liabilities (TLIA), total income (TREV), and net financial income (NFI), based on questions about which financial items businesses should take care of, as well as businesses that do not invest in technologies and skilled staff: does this hinder profit sustainability? Therefore, for this study, data are collected from the financial statements (balance sheet and income statement) of (N = 800) businesses according to their activity (manufacturing businesses = 256, service businesses = 192, and distribution businesses = 353) during the period (2020–2022). The results show that each of the variables and factors had a significant impact on sustainable profit through the circular economy in (N = 800) businesses. However, to have a sustainable profit in business, it is strongly recommended to pay attention to these findings: businesses should (a) be careful with total liabilities, (b) increase the performance of total assets, (c) increase the performance of net financial income, (d) increase the performance of total business income, and (e) increase and develop the skills of workers, as well as improve technology (equipment, machinery, etc.). With implications and limitations, it was difficult to access some of the financial statements; there are only a limited number of variables, so the same models can be analyzed for other businesses, variables, and countries.

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“…Catulli et al (2021) affirm that Product-Service Systems (PSS) represent a perspective in the face of this context since they are composed of products, services, infrastructure, and stakeholders [4], capable of satisfying customer needs [5], while also meeting the social, environmental and economic areas of the Triple Botton Line [6]. The study by Chiarot et al (2022) highlights the contributions of a PSS proposal, and emphasizes its relationship with the circular economy, as well as with the ReSOLVE framework, highlighting that they mutually contribute with advances in the face of sustainable development [7].…”

Section: Introductionmentioning

confidence: 99%

Application of a Generic Model for the Transition to a Product Classified as a Product-Service System: Bike Sharing Case

et al. 2023

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This paper aims to apply a generic model for the transition to a product classified as a Product-Service System in the bike sharing case. For theoretical foundation, a systematic literature review was conducted, and then, the model was developed and validated with PSS experts and statistical analysis. Considering the need of PSS products to be aligned with the Tripple Botton Line, a Life Cycle Analysis (LCA) was performed to measure the environmental and human health impacts of a bike. Aiming to design an action plan and mitigate these impacts, the generic model was applied. The results contribute to (i) the theoretical development of the literature by proposing a generic model validated and applicable in other cases, and (ii) with the practical development, since with the application of the LCA and the model, it was possible to identify an alternative to mitigate the impacts of the most polluting part of a bike: the aluminum frame. Thus, this study proposes substituting aluminum with a polymeric biocomposite: a blend between polypropylene and bamboo fiber. Given the theoretical modeling of this work, future studies can focus on the practical validation of this blend through mechanical testing.

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Evaluation of the Applicability of the Circular Economy and the Product-Service System Model in a Bearing Supplier Company

Cited by 5 publications

References 48 publications

Challenges on the way to a circular economy from the perspective of the Austrian manufacturing industry

Challenges on the way to a circular economy from the perspective of the Austrian manufacturing industry

Investigating Accounting Factors through Audited Financial Statements in Businesses toward a Circular Economy: Why a Sustainable Profit through Qualified Staff and Investment in Technology?

Application of a Generic Model for the Transition to a Product Classified as a Product-Service System: Bike Sharing Case

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