Tying product reuse into tying arrangements to achieve competitive advantage and environmental improvement

Krystofik, Mark; Gaustad, Gabrielle

doi:10.1016/j.resconrec.2017.08.028

Cited by 15 publications

(7 citation statements)

References 17 publications

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“…Existing research in the field of circular business model underlines that take‐back systems enable the acquisition of wastes as resources, although they need to be incentivized by proposing to customers a lower waste management cost (Ranta et al, ). As Lewandowski () pointed out, take‐back systems gain relevance in a circular economy because this approach “assumes that products, their components and/or materials can be cascaded (in case of biological nutrients), and reused/redistributed, remanufactured/refurbished, or recycled (in case of technical nutrients)” (p. 20); thus, companies are required to collect back products from the consumer (Krystofik & Gaustad, ). Take‐back systems require the design of the take‐back management system including channels and customer relations related to this system (Lewandowski, ).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Designing business models in circular economy: A systematic literature review and research agenda

et al. 2020

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The concept of circular economy is increasingly receiving attention in different domains, including strategic management, operations management, and technology management. It requires companies to design their business model (i.e., the value network, the relationships with the supply chain partners, and the value propositions towards customers) around a new concept of sustainable development that reduces consumption of natural resources and preserves the environment. However, extant research falls short in terms of explaining how companies design their business model according to the circular economy principles. Starting from this premise, the present paper provides a systematic review of the literature on the design of business models in the context of circular economy, aiming to offer an overview of the state of research and outline a promising research agenda.

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Section: Theoretical Frameworkmentioning

confidence: 99%

Designing business models in circular economy: A systematic literature review and research agenda

et al. 2020

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“…Yang, Lu, Zhu, & Su, 2015;Lu Zhang, Li, Cao, & Huang, 2018). However, few papers focus on B-to-B context based on large customer and stakeholders' criteria selection (Krysto & Gaustad, 2018;Li, Ye, Sheu, & Yang, 2018;Saberi, Cruz, Sarkis, & Nagurney, 2018;Wang, Wang, Zhang, & Zhao, 2018;Yu, Cruz, & Michelle, 2018;Linghong Zhang, Zhou, Liu, & Lu, 2019). This can be explained by the fact that firms are reluctant to share information, which makes data collection difficult.…”

Section: Introductionmentioning

confidence: 99%

Which is the relationship between the product’s environmental criteria and the product demand? Evidence from the French food sector

Palacios-Argüello

Gondran

Nouira

et al. 2020

Journal of Cleaner Production

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The purpose of this paper is to identify which environmental criteria can influence the product demand in a context of business-to-business. These criteria can be related to the product's environmental characteristics, to the organization strategies or green practices developed by the firms and to the supplier selection process. Building the conceptual framework from the literature review, a set of environmental criteria were extracted, selected and validated. These criteria were used as a basis for the definition of a questionnaire survey that was sent to 5820 professionals from the food industry in France. The analysis of the 248 complete answers shows that the environmental characteristics of the product can influence product's demand. The most influential attribute to improve the product's environmental quality that increases the product's demand is the introduction of organic labelled raw materials. Besides, the practices that influence mostly the product demand are related to the geographical proximity with the stakeholders. Moreover, the results show that the most important selection criterion when choosing a supplier is the importance given to the quality and environmental performance of components offered. Hence, we show that in the French food market, as opposite to what is usually assumed in many research works, the carbon emissions yield during the production process and transportation process have still no significant impact on products' demand. Lastly, in this work, we quantify the demand increase that company can achieve when enhancing the environmental quality of its products. We show that the impact of the enhancement of those criteria on the demand can have different aspects. 55.6% of respondents advocate for a demand increase and most of them (33.6%) estimate this increase between 5 and 10% of the initial demand. Finally, some respondents (4.8%) indicate that the enhancement of environmental quality does not necessarily increase the demand. However, without efforts to enhance the environmental quality of their products, the demand can decrease. These findings allowed concluding that the business-customers are becoming more and more exigent by privileging organic labelled and local products and making that the companies analyse the geographical proximity with the stakeholders as a key factor during the selection process. We provide companies managers in food industry with better understanding about the environmental criteria that increase the products demand helping them to target the right decisions and to be efficient in their process of environmental quality enhancement. We also assess and try to quantify and give an estimation about the demand evolution regarding the enhancement of product's environmental quality. Our findings are also helpful for Operational Research community.

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“…Innovative competitive strategies are associated with a diverse set of CE practices, such as waste sorting systems, design, Life Cycle Assessment (LCA), recovery and reuse of packaging, innovative materials for packaging (Mura et al, 2020), and product reuse and remanufacturing (Krystofik & Gaustad, 2018). Each of those CE practices are paths to implement different competitive strategies.…”

Section: State‐of‐the‐art Of Strategic Planning In Cementioning

confidence: 99%

Strategic planning oriented to circular business models: A decision framework to promote sustainable development

et al. 2022

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Circular economy principles are usually dissociated from strategic planning practices, and there seems to be no guidance on how to decide on competitive strategies to establish circular business models. Therefore, this article aimed to propose a strategic planning decision framework oriented to circular business models (SPDF‐CBM) and test it by conducting a case study of a Brazilian company from the cosmetic sector. The SPDF‐CBM framework comprises five stages: (A) circular trends analysis; (B) circular vision and goals definition; (C) current circular business status; (D) competitive strategy for a circular economy definition; and (E) competitive strategies for a circular economy prioritization. Based on a number of tools to assist going through Stages A, B, and C, businesses get to know their current circular status and define their desired future state. In Stages D and E, businesses define their competitive strategy and spot circular business models (and strategies) they can pursue. After testing the proposed framework in a Brazilian startup from the cosmetic sector, results from SPDF‐CBM suggested that the startup pursues a competitive strategy based on differentiation and a CBM aimed at promoting renewable options. It was also pointed out that other CBMs in decreasing degree of fit with the business were maximizing material and energy efficiency, extending resource value and product life, pursuing sufficiency, and delivering functionality rather than ownership. By using the SPDF‐CBM framework, organizations can increase both their competitiveness and circularity at the same time.

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Tying product reuse into tying arrangements to achieve competitive advantage and environmental improvement

Cited by 15 publications

References 17 publications

Designing business models in circular economy: A systematic literature review and research agenda

Designing business models in circular economy: A systematic literature review and research agenda

Which is the relationship between the product’s environmental criteria and the product demand? Evidence from the French food sector

Strategic planning oriented to circular business models: A decision framework to promote sustainable development

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