Analysing the risks of adopting circular economy initiatives in manufacturing supply chains

The concept of circular economy (CE) has proven its worth due to the scarcity of natural resources and huge amounts of wastage which impacts the environment. Thus, the adoption of the CE concept in the supply chain becomes critical. However, due to the complex nature of processes/activities in the circular supply chain (CSC), managing risk has become a priority to avoid disruption. In current literature, no discussion has been conducted on how to analyse the risks in the context of CSC. Therefore, to fill this literature gap, this study concentrates on identifying and analysing the risks to promote effective circular initiatives in supply chains in the context of the manufacturing industry, thus minimising the negative environmental impact. A total of 31 risks were identified through an extensive literature review and discussions with experts. A grey-based decision-making trial and evaluation laboratory (DEMATEL) method is applied by incorporating the experts' knowledge to compute prominence and cause/effect scores to develop an interrelationship map. Finally, a vulnerability matrix for risk categories is developed using the average of prominence and cause/effect scores of risks. The results show that transparent process is the most prominent risk and branding is the least significant risk. By using the average prominence and cause/effect score, a risk category, namely, financial risk, is identified as most vulnerable to CSC. These findings will help industry managers not only to prepare business strategies in the adoption of CE initiatives in supply chains by eliminating risks but also in minimising negative environmental impact.     

Supplier evaluation in the context of circular economy: A forward step for resilient business and environment concern

Resource depletion is a concern for the global economy; many think that available resources on the planet will not be able to cater to an ever-growing population. Thus, economies are trying to become circular, leaving behind the linear tradition linear approach. In the circular economy (CE), physical resources and energy are made to loop back into the supply chain (SC) for a more extended period. Proper selection of suppliers is an essential criterion towards proper execution of the CE principle in SC. In this research, we have constructed a framework for evaluating the supplier concerning the CE implementation. Further, this research identifies the criterion and sub-criterion, which are pertinent for evaluating the supplier in CE context. Fuzzy-based ‘Criteria Importance Through Inter-Criteria Correlation (CRITIC)’ method is justifiably applied to determine the aggregated weights of the criteria. Finally, ‘Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS)’ method is used to determine the suppliers' ranking in the Indian automobile industry. Six criteria and 24 sub-criteria are obtained as per recent literature and then inputs from experts. ‘Environment’ criterion came out as the most favourable criterion with a subjective weight of 0.230. The current research is one of the first such attempts to provide criteria for supplier selection in a CE environment. The developed framework would help organisations in implementing CE-based supplier selection. The identified criteria and sub-criteria would provide organisations with means to evaluate suppliers and help suppliers develop an effective and efficient CE based on the SC.     

Implementing circular economy in the textile and clothing industry

This research reveals the current state of the circular economy (CE), challenges and opportunities of implementing CE and interventions that could facilitate effective implementation of CE in the textile and clothing (TC) industry. The study uses a survey method within 114 TC companies based in Bangladesh, Vietnam and India revealing the correlation of CE fields of action (take, make, distribute, use and recover) with sustainability (economic, environmental and social) performance. The lack of financial, technological and human resources along with management's reluctance and end-user's indifference to sustainability is the biggest challenge for CE implementation. The research further derives that the TC firms are unable to eradicate the challenges to CE implementation without a holistic approach that involves the collective effort from the industry, host government's incentives, their buyers and above all the conscience of the end-users. Finally, the study reveals that the collaborative efforts, knowledge sharing in sustainability management across the value chain and marketisation of the waste recycling, among others, are a few actions the stakeholders of the TC industry must adopt for implementing CE successfully.     

Assessing people-driven factors for circular economy practices in small and medium-sized enterprise supply chains: Business strategies and environmental perspectives

Globalisation and technological advancements have increased the pressure on small businesses to increase their productivity and to gain competitive advantages. That pressure has been placed on the resources available, resulting in increased environmental degradation as a result of the traditional linear model of make-use-dispose. Circular economy (CE) practices offer the opportunity for sustainable production based on the reuse-remanufacture and recycling of resources for small and medium-sized enterprises (SMEs) to increase their sustainability, resulting in enhanced performance levels in terms of business strategies and environmental perspectives. But in academic literature, the role of people-driven factors (PDFs) in the adoption of CE practices in the supply chains (SCs) of SMEs is limited. Therefore, to fill this literature gap, this research looks at analysing PDFs for the implementation of CE in the SMEs in developing countries in two phases. PDFs are identified from an extensive literature review; a DEMATEL technique is then employed to understand the significant influence of each factor in the adoption of CE practices in SCs by dividing them into cause–effect groups. The findings show that PDFs such as training and knowledge sharing, employee participation, leadership and management plus strategic alignment are considered to be the most important significant factors in the adoption. The findings of this study will help industrial managers to understand the significance of the role of PDFs for enhancing business strategies; these findings can reduce the negative environmental impact in the adoption of CE practices in the SCs of SMEs.     

Sustainable manufacturing and green human resources: Critical success factors in the automotive sector

This study aims to identify critical success factors (CSFs) for implementing sustainability in organizational human resources management (OHRM) within the automotive sector (AS). A literature review was carried out to identify the OHRM factors that are instrumental for the significant adoption of sustainable practices (SP) in the sector. Based on the outcomes from the literature review, an expert team composed of 17 experts from the AS, academia, and consultancy firms were consulted in order to identify cause–effect relationships among CSFs using a multi-criteria decision making tool. Data were gathered in India from November 2019 to April 2020. The results revealed that top management support and environmental auditing for suppliers are the two most important CSFs to be prioritized among the factors studied, which implies that by managing these factors first, automotive manufacturers may deal better with the adoption of SP. As a result of prioritizing these two factors, other CSFs related to OHRM (e.g., organizational culture, environmental training, rewards, and incentives) will also positively affect the adoption of SP. The novelty of this study comes through raising the importance of environmental auditing for suppliers as a factor that can facilitate not only the adoption of SP in the AS, but the other OHRM factors as well.     

Mapping circular economy activities in the European Union: Patterns of implementation and their correlates in small and medium‐sized enterprises

With the European Commission looking for ways to incentivize the adoption of circular economy (CE) activities by small and medium‐sized enterprises (SMEs) in the European Union (EU), further insights into the implementation of CE activities across member states are needed. We analyse a European Commission survey conducted in 2016 among approximately 11,000 firms in EU‐28 member states in order to throw light on the conditions in which SMEs engage in five specific CE activities. In contrast to previous studies arguing that CE activities are independent of each other, we present novel findings demonstrating that seven patterns of engagement in CE can be identified in which activities are systematically interdependent. Further, we show that these patterns are associated with the organizational properties of SMEs and are differentially distributed among EU member states and industrial sectors. The interdependency of activities forms a hierarchy in which waste minimization is the most likely activity to be implemented in SMEs, followed, in descending order of likelihood, by replanning of energy use, redesigning products and services, and finally using renewable energy and replanning water usage. The findings have theoretical, managerial, and policy implications for the adoption of interdependent CE activities.     

Industry 4.0 and circular economy: An exploratory analysis of academic and practitioners' perspectives

The union between Industry 4.0 and the circular economy (CE) appears relatively recent. In this sense, new trading zones for sharing a common scenario among academics and practitioners are needed. The paper aims to investigate the link between Industry 4.0 and the CE by understanding how Industry 4.0 can foster the impact of the CE on companies. The study proposes a broader perspective that includes thematic and content analysis gathering data on professional documents based on business cases, newspaper articles, press releases and specialised blogs, as well as scientific papers. The joint academic-practitioners view highlights how Industry 4.0 has the potential to impact on the CE through countless actions: increasing waste disposal; promoting remanufacturing; enhancing the efficiency of critical resources such as water, energy, gas and CO₂; and improving business models and the mission of companies. However, barriers still exist in its adoption, stressing the need for holistic and integrated design and a proactive environment of collaboration among stakeholders. Results lead to practical as well as research implications.     

Circular economy,the transition of an incumbent focal firm: How to successfully reconcile environmental and economic sustainability?

Circular economy (CE) has garnered increasing attention in political circles and practitioner literature thanks to its potential to overcome the harmful consequences of linear patterns of growth. Nonetheless, the adoption of sustainable practices entails a holistic approach requiring businesses to make significant changes to their production, technologies and stakeholder management. These challenges resulted in limited progress in terms of the practical implementation of CE. This paper addresses the need for more literature focused on the pragmatic aspects of applying this paradigm to incumbent firms. The author presents the journey that Lucart S.p.A., a major European tissue paper manufacturer, has undertaken between 2014 and 2020 to apply CE principles to its practices. Insights from the transformation process, reconstructed through interviews with the firm's management and environmental impact data, suggest that to succeed it takes innovating (plants, products and marketing strategies) and setting up supply chains that reconcile environmental and economic sustainability.     

中国废旧汽车逆向物流研究

实施汽车逆向物流,不仅能使物流企业提高服务水平和运营效率,也能重新获得报废汽车及其零部件的使用价值,更是节约资源、保护环境、实施可持续发展的重要措施。文章在分析了国内外废旧汽车逆向物流发展现状的基础上,指出我国废旧汽车逆向物流发展的制约因素与不足,提出加快发展中国废旧汽车逆向物流的对策,为我国汽车逆向物流向着环保、经济方向健康发展提供理论支持。     

增程式电动汽车产业浅析

新能源汽车是未来汽车产业转型发展的重要方向。我国新能源汽车前期发展取得了突出的成绩,产销量位居世界首位。但目前产业发展正面临新形势,未来一段时期内将由“政策驱动”转向“政策+市场双驱动”。到2021年购置补贴完全退出后的后补贴时代,如何保障新能源汽车产业的健康、可持续发展,值得人们共同思考,开发什么类型的产品才能更好地满足消费者的需求,值得行业企业考虑。     

Exploring the circular economy paradigm: A natural resource-based view on supplier selection criteria

The paradigm of circular economy and the transfer of its principles to supply chain management has recently received much attention from researchers and practitioners. Limited natural resources, governmental legislation, and social responsibility for environmental preservation are the main factors for the development of circular supply chains. Especially in the automotive industry, critical materials are used to produce electric vehicles, reinforcing the importance of circularity for the industry. As the first stage of the supply chain, suppliers have a considerable influence on creating self-sufficient production systems, and in the automotive sector, a low level of vertical integration is important. Therefore, selecting suppliers is an enabler for circular supply chains, but this decision is a complex process due to multiple, partly conflicting criteria. To contribute to the knowledge in this research area, this study applies a fuzzy decision-making trial and evaluation laboratory approach for supplier selection in a circular supply chain in a case study of electric vehicles. First, a set of criteria for supplier selection in circular supply chains was identified based on a literature review and was systematically categorized based on the natural resource-based view. Afterward, the criteria were assessed and refined by experts with a strong procurement background in the automotive industry. Second, the experts were interviewed for value collection, and finally, the mutual influence of the criteria was determined. The results show that the most important criteria for circular supplier selection in electric vehicle supply chains are environmental standards, environmental-related certifications, resource consumption, and waste generation. Regarding the natural resource-based view, short-term focused criteria addressing the capability of pollution prevention have a higher importance compared to long-term criteria that drive sustainable development. In addition, this study classifies the criteria into the categories of causes and effects, discusses the prominence of the criteria, and presents a strategic map showing the mutual influences of the criteria. The results contribute to the theoretical and practical discussion on circular supply chains by identifying the key criteria for circular supplier selection and providing decision-making support for procurement managers.     

基于循环经济的汽车再利用管理体系研究

随着报废汽车数量的逐年增加,由此引发的环境污染、能源损耗和交通安全等问题愈发突出,对报废汽车进行回收再利用已成为我国汽车工业发展循环经济、走可持续发展道路的重要环节之一。基于循环经济思想,对比国内外汽车再利用的管理和技术现状,找出制约我国汽车再利用的原因,提出一系列提高我国报废汽车再利用水平的管理措施,以期改善我国的汽车产业循环经济发展环境,建立资源节约型、环境友好型和谐社会。     

Does government intervention help the Chinese automobile industry? A comparison with the Chinese computer industry

Through comparison with the computer industry this paper examines whether government intervention has facilitated development in the Chinese automobile industry. Chinese computer firms operate in a largely laissez-faire market environment, with relatively free entry and exit, whilst the automobile industry is subject to government protection and uses entry barriers and high tariffs to promote economies of scale and productive efficiency. We, however, find that the automobile industry is more concentrated and less efficient than the computer sector. This suggests that competitive forces can be more effective in improving efficiency than regulation, even in the Chinese context.     

谈商用微车后车架的设计

现阶段,我国汽车业蓬勃发展,各大汽车生产商越来越重视汽车的开发速度,而成熟的汽车设计方法能大大缩短开发时间,加快汽车开发速度。文章对商用微车后车架的设计过程进行了探讨、分析,从汽车总体布置到典型截面,以及3D数据构建和运用CAE模拟分析同步设计的现代汽车设计方法,介绍汽车主要骨架后车架的设计过程,以期对其他汽车后车架设计提供理论性参考。     

Understanding the Impact of Green Initiatives and Green Performance on Financial Performance in the US

Sustainable development has received increasing attention in recent literature, driven by increased environmental concerns. We study the influence of green initiatives and green performance on financial performance for the top 500 publicly traded companies in the USA by industry sector. Green initiatives are measured using the concepts Green Pay Link, Sustainability Themed Committee and Audit. Green performance is measured using Energy Productivity, Carbon Productivity, Water Productivity, Waste Productivity and Green Reputation. The results show that green initiatives have a negative impact on Energy Productivity and Green Reputation, and that both green initiatives and green performance have a significant impact on financial performance. These results are mixed and vary by industry sector. The results suggest that companies take a reactive, not proactive, approach in the implementation of green initiatives. In addition, the results suggest that the impact of green performance on financial performance is not immediate, and may take more than a year for companies to observe. Copyright © 2017 John Wiley & Sons, Ltd and ERP Environment     

Driving the electric bandwagon: The dynamics of incumbents' sustainable innovation

Given that entire industries face sustainability challenges, it is important to understand the dynamics that lead “firms‐in‐an‐industry” to engage in sustainable product innovation. To provide more insight into the question of how innovation activities spread from individual firm action to an industry‐wide engagement, this paper examines the automobile industry and the development of electric vehicles (EVs). The analysis covers automobile incumbents over a crucial decade for EV development in the industry, focusing on the different strategic motives that especially the so‐called “first movers” used to justify their earlier engagement. We find that EVs became a core pillar of the incumbents' technology strategies through a combination of coercive, normative, and mimetic pressures. Yet, the strategic motives to engage in EVs stayed poles apart between different companies. The insights from our study are relevant for those interested in the diffusion of sustainable product innovation and in incumbent behaviour in sustainability transitions.     

Transferring the Toyota lean cultural paradigm into India: implications for human resource management

This paper argues that the successful international transference of Japanese lean manufacturing practices in general, and the Toyota Way and Toyota Production System (TPS) in particular, is in varying degrees contingent upon the sociocultural, historical and environmental context of the host nations into which such transfer occurs. This has significant implications for human resource management policies and practices. The paper contends that lean manufacturing is not simply a set of concepts, techniques and methods that can be implemented by command and control. In the course of transferring lean practices from Japan into overseas affiliates, either an absence of due consideration or disregard for a host nation's unique sociocultural and environmental factors could lead to unproductive organisational outcomes for the parent company. This viewpoint is examined through a case study analysis of the Indian affiliate of the Japanese automobile industry giant Toyota Motor Corporation, namely Toyota Kirloskar Motors, located at Bidadi, near Bangalore, India.     

The Economic and Environmental Consequences of Automobile Lifetime Extension and Fuel Economy Improvement: Japan's Case

The presenft paper develops a structural decomposition analysis with cumulative product lifetime distributions to estimate the effects of both product lifetime shifts and energy efficiency changes on the embodied energy consumptions. The empirical analysis focuses on automobile use (ordinary passenger vehicles, small passenger vehicles, and light passenger vehicles) in Japan during the period 1990–2000. It reveals that the lifetime extension of existing old vehicles during the study period was more beneficial to the environment than purchasing new passenger vehicles with a relatively high fuel economy, because the lifetime extension empirically contributed to reducing the embodied energy consumption at the production and end-use stages. We also found that the energy-saving impact of a one-year lifetime extension was approximately 1.3 times larger than that of the most significant technological improvement in the electric power generation sector.     

Contrasting Institutional and Performance Accounts of Environmental Management Systems: Three Case Studies in the UK Water & Sewerage Industry*

abstract This paper presents results from a longitudinal, qualitative study into the adoption of environmental management systems (EMS) in three companies in the UK water & sewerage industry. Based on institutional theory and the literature on EMS, four factors related to the adoption of EMS are identified: external and internal institutional forces, environmental performance issues, and economic performance issues. While previous literature has often assumed a balance of performance and institutional factors or a preponderance of performance factors, the results of this study indicate that institutional forces are the predominant drivers. The results further indicate that environmental performance issues become less important over time, whereas institutional drivers and economic performance rationales increase in importance over time. While conforming to institutional pressures can result in improved economic performance of a company, adoption of environmental management systems mostly on the basis of institutional and economic factors has wider repercussions for the state of corporate environmental management and progress towards greater ecological sustainability of business.