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11 – 20 of over 10000Amoako Kwarteng, Samuel Nana Yaw Simpson and Cletus Agyenim-Boateng
The study aims to examine the micro-level implications of implementing a circular economy (CE) business model on firms’ financial performance and the effect of organizational…
Abstract
Purpose
The study aims to examine the micro-level implications of implementing a circular economy (CE) business model on firms’ financial performance and the effect of organizational culture in this context.
Design/methodology/approach
Using a survey method to obtain 617 usable questionnaires from diverse business sectors in Ghana, a largely unexplored region and relying on institutional and legitimacy theories.
Findings
The study shows that the implementation of CE policies, such as the reducing, reusing, recycling, recovery and restoration of resources used in manufacturing, distribution and consumption processes, contributes to improved financial efficiency. Furthermore, organizational culture moderates by way of strengthening the positive relationship between CE and business financial performance.
Originality/value
This study contributes to the literature on circularity and the broader discourse on ecological issues by arguing that institutional and legitimacy theories, which are both from the political economy theory, suggest that firms’ economic activities will be influenced by the political, social and institutional context. Therefore, the firm’s decision to embrace a different business model such as CE should be seen from the political environment involving rules and regulations, social dynamics both within and outside the organization and the institutional structures within which the firm operates. These mechanisms establish a business case for the implementation of CE initiatives and is guided by intent and specific goals. This motivates and encourages employees to be more involved in their duties and interactions leading to high levels of employee satisfaction, which improves productivity and profitability.
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Simone Sehnem, Ana Beatriz Lopes de Sousa Jabbour, Diogo Amarildo da Conceição, Darciana Weber and Dulcimar José Julkovski
There is no literature that sought the revision and integration of ecological modernization of theory (EMT) and circular economy (CE). This article aims to answer the questions…
Abstract
Purpose
There is no literature that sought the revision and integration of ecological modernization of theory (EMT) and circular economy (CE). This article aims to answer the questions: How have companies developed circular economy practices within their operations? Why have companies invested in circular economy practices? Based on the answers to these questions, it would be possible to understand how the assumptions of EMT explain the adoption of CE practices.
Design/methodology/approach
The research method is based on multiple case studies with Brazilian craft brewery companies.
Findings
Companies studied have pursed the adoption of circular economy practices, but the full potential of the use of biological cycles within their processes of production has been hampered by the lack of external policies and clear governance toward circular economy. Thus, pollution prevention policies may be an important driver for organizations be able to advance in circular economy practices.
Research limitations/implications
Research limitations are coverage only of organizations located in an emerging country. A second limitation is that the data saturation was partially achieved in some of the analyzed cases, especially by the limitation of the time period surveyed (transversal research). The longitudinal evaluation is timely for circular economy surveys.
Practical implications
The formulation of a regulatory framework through a participative, interactive and decentralized process, capable of delegating responsibilities and incentives to all entities, to contemplate a tax restructuring for the alcoholic beverage sector, could corroborate to create a new standard of action for the sector.
Social implications
This document highlights how the principles of ecological modernization can contribute to the advancement of the circular economy. The understanding can help in the design of processes that provide circular and sustainable operations as a social good in a effective value.
Originality/value
The principles from EMT, such as the development of an institutional environment towards corporate environmental proactive, could enhance the adoption of circular economy practices within the brewery sector. Despite of the class association of the brewery sector has supported the companies studied to move forward in other matters, a clear governance is necessary to guide organizations towards circular economy practices.
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Pasquale Del Vecchio, Giustina Secundo, Gioconda Mele and Giuseppina Passiante
The paper aims to contribute to the Circular Economy debate from the Entrepreneurship Education perspective. Despite scholars' growing interest in both these research streams…
Abstract
Purpose
The paper aims to contribute to the Circular Economy debate from the Entrepreneurship Education perspective. Despite scholars' growing interest in both these research streams, scarce consideration is given to the comprehension of their mutual implications and meaning.
Design/methodology/approach
The paper is based on a cross-case analysis. It compares 16 higher education programmes launched by Universities in Europe aimed to create competences and skills for Circular Economy in students with different profiles. The analysis provides a critical view of the emerging trends for the entrepreneurship education skills and competencies needed for the emerging circular entrepreneurship paradigm.
Findings
The paper discusses the main trends of Entrepreneurship Education focused on Circular Economy debate at the European level: rationale and learning objectives (why); contents (what), target students and stakeholders (who) and the learning processes (how). Four thematic areas are identified as common patterns: circular economy business model, green supply chain management, technology entrepreneurship and innovation and public policies and institutional frameworks.
Research limitations/implications
The paper sheds new light on a still under-researched area, suggesting several implications and avenues for future research in Circular Economy and Entrepreneurship Education. Limitations regard the need to analyse education programmes from a larger geographical area, to take into consideration interesting experiences in the rest of the world and to also collect quantitative data.
Practical implications
Practical implications arise for the development of learning initiatives for the Circular Economy: learning objectives and new thematic areas focused on circular, sustainable and innovative rethinking of the process for creating value in the incumbent companies; exploring meaning and benefits of collaborative approaches and participation in the circular economy innovation ecosystem and developing advanced models for soft-skills development in terms of leadership, motivational and creative skills.
Originality/value
The debate on CE can also be rooted in the paradigm of entrepreneurship as a core process to advance knowledge on valuable and sustainable innovation.
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PuCha Wang, Fei Che, ShanShan Fan and Chen Gu
This paper aims to explore the determinants of circular economy accounting information disclosure quality, and also to make empirical analysis on the relationship between circular…
Abstract
Purpose
This paper aims to explore the determinants of circular economy accounting information disclosure quality, and also to make empirical analysis on the relationship between circular economy accounting information disclosure quality and corporate ownership governance and institutional pressures according to institutional theory and corporate governance theory. Finally, this paper provides some corresponding suggestions for heightening circular economy accounting information disclosure quality.
Design/methodology/approach
This paper constructs enterprise circular economy accounting information disclosure model with Chinese characteristics. First, it takes disclosure index method to measure enterprise circular economy accounting information disclosure quality, followed by the hypotheses of this study. Then, this study employs a statistical analysis technique to empirically study the relationship between enterprise circular economy accounting information disclosure quality and ownership governance and institutional pressures, to study the ways to heighten enterprise circular economy accounting information disclosure quality in Chinese background.
Findings
Ownership governance and institutional pressures mainly determine quality of circular economy accounting information disclosure. This paper draws the following conclusions: Chinese listed companies have heightened their circular economy accounting information disclosure quality due to ownership concentration, shareholding of institutional investors, mandatory disclosure, capital structure and assets size. However, the circular economy accounting information disclosure quality has low correlation with the profitability and the location of listed companies.
Originality/value
Both in China and the West, few scholars or experts adopt empirical research to study the determinants of circular economy accounting information disclosure quality in an institutional theory and corporate governance theory perspective based on China’s supervisory system background. This paper makes a thorough analysis of the factors that affect listed companies’ circular economy accounting information disclosure quality, and provides some corresponding suggestions relevant for heightening circular economy accounting information disclosure quality.
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Syed Abdul Rehman Khan, Muhammad Umar, Hafiz Muhammad Zia-ul-haq and Zhang Yu
Amid rising environmental concerns, Industry 4.0 and blockchain technology (BCT) are transforming circular economy practices and prevailing business models. Recognizing the same…
Abstract
Amid rising environmental concerns, Industry 4.0 and blockchain technology (BCT) are transforming circular economy practices and prevailing business models. Recognizing the same, the current study examines the role of advanced technology in circular practices and their impact on eco-environmental performance, which influences organizational performance. The study collects data from 185 food processing enterprises that are located in Malaysian territories. By employing CB-SEM modeling, the study provides three key findings. First, Industry 4.0 significantly improves the circular economy practices. Second, circular economy practices help to improve firms' environmental performance but did not stimulate operational performance. Third, higher eco-environmental performance significantly boosts organizational performance. This study set out the foundations for participating countries/firms that help to achieve sustainable goals through the integration of blockchain technology in circular economy practices.
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The present paper examines the barriers hindering the implementation of circular economy practices in Indian automotive industries and identifies the most critical barriers to be…
Abstract
Purpose
The present paper examines the barriers hindering the implementation of circular economy practices in Indian automotive industries and identifies the most critical barriers to be eradicated during the circular economy implementation.
Design/methodology/approach
Using a questionnaire survey-based analytic hierarchy process (AHP) approach, 21 barriers to circular economy implementation are identified through a literature review and ranked using the opinions of relevant industrial experts.
Findings
Barriers, minimal or no proper economic incentives, difficulty in ensuring product quality and costing of CE products are identified as top barriers to be eliminated first to boost the chances of successful implementation of circular economy practices in Indian automotive industries.
Practical implications
The study not only offers a roadmap on the order of elimination of barriers towards a circular economy but also provides insights from industrial experts on how these barriers can be eradicated and the ill effects of each barrier from an automotive industry perspective.
Originality/value
The authors develop a theoretical framework for barrier analysis for circular economy implementation in the Indian automotive sector using the classic AHP approach to identify the most critical barriers against successful implementation. Further, this study offers managerial implications on how these barriers can be eradicated in real.
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Chun-Chien Lin and Yu-Chen Chang
This study aims to examine how external and internal conditions drive the impact of circular economy mechanism by decomposing into three policy networks in terms of reduce, reuse…
Abstract
Purpose
This study aims to examine how external and internal conditions drive the impact of circular economy mechanism by decomposing into three policy networks in terms of reduce, reuse and recycle, to better understand the contingency model of climate change and effect of firm size on subsequent performance.
Design/methodology/approach
Drawing on circular economy network and resource-based view (RBV)-network-resilience strategy framework, a pooled longitudinal cross-sectional data model is developed using a sample of 4,050 Taiwanese manufacturing multinational corporations (MNCs) making foreign direct investment between 2013 and 2018. Structural equation modeling analysis is used to comprehensively examine and investigate each circular economy policy network in the context of climate change and firm size. Post hoc multigroup analysis (MGA) is also conducted.
Findings
MGA shows that the reduce policy network is positively and negatively related to manufacturing know-how and production size, respectively. The impact of reuse policy network can enhance the competence of large firms. The recycle policy network is more prominent in terms of competence enhancement of climate change.
Practical implications
MNCs are seeking to build circular economy policy networks to a greater extent, given climate change pressure and guidelines.
Originality/value
This study adds to the circular economy and RBV-network-related literature on climate change and interactions to enhance performance, echoing the recent call on the sustainability of the circular economy of MNCs.
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Enes Ünal, Andrea Urbinati and Davide Chiaroni
The purpose of this paper is to investigate the managerial practices that companies can implement in order to design a circular economy business model and how companies can create…
Abstract
Purpose
The purpose of this paper is to investigate the managerial practices that companies can implement in order to design a circular economy business model and how companies can create and capture value from a circular economy business model.
Design/methodology/approach
The paper adopts a single case study methodology with semi-structured interviews and company, supplier, and manufacturing site visits, conducted in a small-to-medium-size Italian company operating in the office supply industry.
Findings
The theoretical setting maps a set of managerial practices for a circular economy business model and sets the research gaps and questions in a research framework designed along three main dimensions: value network, customer value proposition and interface, and managerial commitment. Then, through an empirical analysis, the findings reveal that the proposed dimensions are interdependent and reinforce each other. Moreover, the managerial commitment as moderating factor between the value network and the customer value proposition and interface dimensions is identified as essential for reaching the intended goals of circular economy business models.
Research limitations/implications
This study maximizes the depth of the phenomenon under investigation by leveraging a single case study methodology, which ideally helps in a theory-testing approach as in the present case. Future research opportunities could be found in qualitative and quantitative studies to increase the generalizability of the findings of this paper.
Practical implications
The paper presents a set of relevant managerial practices for circular economy business models that can be used by managers who have the will to embrace in practice circular economy principles to support the design, change, or upgrade of the business model of companies within which they operate.
Originality/value
An interdisciplinary approach that integrates the research streams of circular economy, social psychology, organizational behavior, and business model design has been pursued to test the theoretical setting and the research framework for circular economy business models in a real-world context.
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Gonzalo Maldonado-Guzmán, Jose Arturo Garza-Reyes and Yesenia Pinzón-Castro
Circular economy is emerging as a new sustainability paradigm. Similarly, eco-innovation is being recognized as one of the most important mechanisms that allow the transition from…
Abstract
Purpose
Circular economy is emerging as a new sustainability paradigm. Similarly, eco-innovation is being recognized as one of the most important mechanisms that allow the transition from a linear to a circular economy in production processes, as there is a strong relationship between eco-innovation (eco-innovation of products, processes and management) and circular economy activities. However, the relationship between eco-innovation and circular economy is an issue that has been isolated and little analyzed in the academic literature. Therefore, this research fills this gap by exploring the interdependence between eco-innovation and circular economy.
Design/methodology/approach
The research is conducted through an extensive literature review from where a research framework consisting of two measurement scales, 18 items and three hypotheses were developed. A self-administered questionnaire was distributed and 460 responses were obtained from companies in the automotive and auto parts industry in Mexico. The data obtained were analyzed through confirmatory factor analysis, descriptive statistics and structural equation modeling.
Findings
The results suggest that eco-innovation of products, process and management has a significant positive impact on the circular economy of companies in the automotive and auto parts industry.
Practical implications
The findings of this research can inform managers in the automotive sector and policymakers when formulating and deploying environmentally sustainable strategies.
Originality/value
This paper fills a research gap by expanding the limited body of knowledge that relates eco-innovation and circular economy and providing some evidence of their relationship. The research also allows the unique characteristics of eco-innovation and the circular economy to be understood within a particular context, growing in this manner the body of knowledge on this field.
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