To read this content please select one of the options below:

Unpacking the value conversion in a circular business model: exploring the effect of competitive criteria

Graziela Darla Araujo Galvão (University of São Paulo, São Paulo, Brazil) (Escola de Ensino Superior da Fipe, São Paulo, Brazil)
Paulo Sergio Scoleze Ferrer (University of São Paulo, São Paulo, Brazil)
Steve Evans (Cambridge University, Cambridge, UK)
Marly Monteiro de Carvalho (University of São Paulo, São Paulo, Brazil)

Journal of Manufacturing Technology Management

ISSN: 1741-038X

Article publication date: 22 December 2022

39

Abstract

Purpose

This research aims to investigate the influence of the implementation of technical cycles on both captured value and shared value in the circular economy context. Moreover, it analyses the moderating effect of competitive criteria on the relationship between technical cycles and captured value. Finally, it examines the relationship between the captured value and the shared value.

Design/methodology/approach

This research follows survey-based research with data gathered from 50 countries and 16 sectors, whose final sample represented 233 organisations. In order to validate the structural and measurement model, the authors applied the partial least squares structural equation modelling technique in the strict rigour of the confirmatory algorithm.

Findings

The validated research model demonstrates the value flow through technical cycles. Moreover, it shows the crucial role of the competitive criteria in the value stream through direct, moderate and indirect effects by influencing the relationship between technical cycles and captured and shared values. Finally, the study fills the gap for quantitative studies in the circular economy field.

Practical implications

From a practical perspective, this study contributes to structuring circular business models more robustly, by understanding the influence of competitive criteria (cost, quality, flexibility and delivery) on the conversion of operation strategy in the implementation of the technical cycles in the circular economy context. It contributes to decision-makers, in deciding on which competitive criteria to invest more, which brings more consistent results for technical cycle implementation. It also confirms the importance of partnerships, demonstrating how value cascades from the company through the value network.

Originality/value

As far as is known to date, this is the first study investigating the influence of competitive criteria in the circular economy context. Furthermore, it sheds light on the direct and indirect effects of the technical cycles on value captured by organisations and flow shared value with other players.

Keywords

Acknowledgements

This work was supported by the CNPq, CAPES and FAPESP.

Citation

Galvão, G.D.A., Ferrer, P.S.S., Evans, S. and Carvalho, M.M.d. (2022), "Unpacking the value conversion in a circular business model: exploring the effect of competitive criteria", Journal of Manufacturing Technology Management, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JMTM-05-2022-0198

Publisher

:

Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

Related articles