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.     

Green supply chains and the missing link between environmental information and practice

Within the field of green supply chain management (GSCM), an interest in supply chain cooperation to create sustainable competitive advantage, i.e. the collaborative paradigm, has made researchers turn their attention to information related aspects of the supply chain. This study contributes to an understanding of a suboptimal use of environmental information, which is critical for all collaborative efforts aiming at sustainable competitive advantage. The aim of this article is to describe the use of environmental information at different stages of the Swedish food supply chain. The results from this case study of the Swedish food supply chain indicate that environmental information is perceived and used differently by purchasers in the supply chain depending on where (in the supply chain) they are situated in relation to other chain actors. The main contribution of this study is the suggestion of a stage‐dependent connection between perceived environmental cost and perceived environmentally informed consumer demand, which are barriers to GSCM practice discussed in recent GSCM literature. The missing link between information sharing and (environmental) performance of supply chains is explained as distance to end‐consumer in terms of supply chain stages. Implications for GSCM practice and theory are discussed. Copyright © 2009 John Wiley & Sons, Ltd and ERP Environment.     

Circular economy in corporate sustainability reporting: A review of organisational approaches

A growing commitment from companies to implement circular economy (CE) strategies demands the development of guidelines for consistent related external communication. The fields of non-financial reporting and sustainability are well established with numerous available international reporting frameworks and approaches; however, there is still an absence of standardised reporting principles and procedures for publishing progress on circularity. In this context, this article aims to explore how companies could include CE within their corporate sustainability reports, through an academic literature review and content analysis of existent reporting approaches. Results showed a clear disconnection between CE and sustainability reporting literature. Overall, only a few of the revised reporting approaches explicitly mention CE, and the guidance given to companies is very general, inconsistent and places the responsibility of selecting performance assessment approaches on the companies. The analysis contributes to identifying opportunities for transparent external communication of CE issues, as well as exploring the challenges and limitations.     

Performance evaluation of reverse logistics in food supply chains in a circular economy using system dynamics

Supply chains are composed of multiple stakeholders who have complex interrelationships. In addition, the forward and reverse flow of materials, information, human resources, and finance occurs among different stakeholders in closing the loop of supply chains. Reverse logistics (RL) activities are gaining importance in terms of size and quantity due to both economic and environmental concerns. These flows in RL in supply chains are both dynamic and complex in nature. Further, the environmental impact of RL activities has barely been considered in holistic way in available literature. In this study, a system dynamics model has been developed to analyze and comprehend the green performance of RL activities by predicting the environmental impact of RL activities. The proposed model has been validated by a case study in the context of a food supply chain. In the company where the case study is carried out, the environmental effects of RL activities have been analyzed. These activities in a food supply chain in terms of CO₂ (carbon dioxide), NO_x (nitrogen oxide), SO₂ (sulfur dioxide), and PM (particulate matter) emissions have been predicted through a system dynamics model for the years 2020 to 2024. The proposed methodology is applied in a food supply context, a major player in retail business, especially in emerging economies. According to our findings, the RL activities in a food supply chain can significantly contribute to green performance management by minimizing food waste and loss; hence, the environmental impacts of such activities should be closely examined from a managerial perspective.     

Green supply chain management in the automotive industry: A study in Brazil

The auto industry is experiencing a time of restlessness, which stems from several elements that currently threaten the stability and status quo of its supply chains. Among these elements are autonomous driving, connectivity, electrification, and trip sharing that has led to new forms of mobility. In this context, this article presents the results of a research, which had three main objectives: (1) to identify the green supply chain management (GSCM) practices most commonly implemented in all industrial sectors worldwide, (2) to evaluate how these practices are considered by professionals in the automotive industry and by researchers working on the subject in Brazil, and (3) to identify and evaluate which practices are most widely adopted within these companies and/or supply chains and influence their environmental performance. The research method combined a qualitative research step (Delphi) with another quantitative one (survey). The results show that most of the reality of the automotive industry in Brazil is in line with studies on GSCM practices worldwide, but some specific findings have also been identified and discussed.     

Rhetoric and reality of corporate greening: a view from the supply chain management function

The increasingly important economic role of supply chain management provides the backcloth against which this article examines what contribution the function can make to environmental protection. Theoretical perspectives on greener supply are developed and then tested against a sample of manufacturing companies. Environmental policy documents published by the sample companies seem to offer surface evidence for a proactive supply chain management role in environmental protection. Yet a more detailed examination of the three elements that constitute supply chain management – the management of the transformation of materials, the management of information flows and the management of supply chain relationships – finds a suboptimal situation for all three areas. In part this gap can be explained by limits in the technical capabilities of the supply chain. More important, however, are structural constraints that prevent the supply chain manager from actively searching for environmentally friendlier alternatives. Copyright © 2005 John Wiley & Sons, Ltd and ERP Environment.     

Stakeholder management in sustainable supply chains: A case study of the bioenergy industry

Engaging with stakeholders and managing their issues when striving for a sustainable supply chain (SC) is a significant challenge. Although most studies on sustainable supply chain management (SSCM) consider stakeholder management necessary, little is known about related stakeholder management practices in SSCM. Thus, this paper seeks to enrich the theoretical debate on stakeholder management practices in SSCM through a case study approach to bioenergy SCs in Chile. Based on 28 interviews with SC actors and representatives from the surrounding stakeholder environment, the deductive–inductive analysis reveals that stakeholder management combines different practices to discuss stakeholder concerns, address them, and evaluate the process at the SC's external and internal levels. We propose structuring these practices based on two dimensions: “practices to address stakeholder requirements” and “practices whereby stakeholders are integrated.” The analysis' results indicate that although two-way communication with stakeholders can be seen as the core of stakeholder management, a certain willingness to learn and transform SC design is a prerequisite for true orientation toward stakeholder management in SSCM. Additionally, linkage development and local anchoring are practices used to obtain further legitimacy at the external level. Building on these findings, this study can guide practitioners in engaging with stakeholders and managing their issues across the SC.     

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.     

Sustainable reverse supply chains and circular economy in multichannel retail returns

The percentage of products being returned in multichannel retail are high and further increasing, yet many retailers and manufacturers are unaware of the importance and scale of this issue. They consider dealing with returns as a cost of doing business and are oblivious of the potential for conflicts between their corporate social responsibility commitments and their returns practices. This article investigates how far sustainable practices and circular economy concepts have been implemented in retail returns systems; it identifies vulnerabilities, barriers, and challenges to the implementation of sustainable, circular practices and suggests ways to overcome them, as sustainability, loss prevention, and profit optimisation can go hand in hand with the right approach to the organisation of the reverse supply chain. Implications of this research on strategic management are outlined. The research was conducted using in‐depth interviews and observations with four major retailers in the United Kingdom, 17 structured interviews, 100 retailer website reviews, and three retail community workshops, all with British and other European retailers.     

Practices and strategies for sustainability-related risk management in multi-tier supply chains

This study investigates how sustainability-related risks are managed in multi-tier supply chains. It focuses on the strategies and practices that companies use to manage sustainability-related risks and how these differ between supply chains and supply chain tiers. We use a multiple-case study with 25 companies forming 5 multi-tier supply chains. As a result of this study, we present a conceptual framework for sustainability-related risk management practices in multi-tier supply chains and apply it empirically by defining sustainability-related risk management profiles for the case supply chains. We show that in multi-tier supply chains, companies need direct and indirect collaboration and direct and indirect monitoring practices for managing sustainability-related risks emanating from not only their first-tier suppliers but also lower-tier suppliers. Our framework helps purchasing and supply chain managers understand the dimensions of sustainability-related risk management in a multi-tier setting and develop strategies and practices for mitigating and managing those risks. We also empirically show the challenge of extending sustainability-related risk management practices beyond first-tier suppliers due to the different practices in different supply chain tiers.     

Operational excellence in a green supply chain for environmental management: A case study

Nowadays, organizations have started to become more conscious about the environment in their supply chain operations. The greening process has guided supply chain practices into new ways of thinking according to green standards. The assessment of the performance of green supply chain management (GSCM) requires a holistic view for the whole supply chain. In this context, given that becoming green in the operational side of activities is essential, the performance assessment of operational activities also requires a holistic view to be taken. In this paper, an attempt has been made to improve the performance of GSCM by examining and evaluating the green operational excellence of a hot dip galvanizing company. The framework includes several green operational excellence key criteria, namely, quality management, efficiency management, green production/manufacturing, eco‐packaging, and green design. First, the weights of the criteria and the respective measurements were found by fuzzy analytic network process. Then, the overall operational performance score was found by a weighted scoring method. Finally, both managerial and theoretical implications were suggested according to the outcomes and findings of the case study.     

Traders as sustainability governance actors in global food supply chains: A research agenda

Corporate actors are rapidly gaining ground as nontraditional forms of authority that shape sustainability governance efforts in global food supply chains. This paper highlights the critical, but underresearched role of traders—companies whose core business lies in the movement and exchange of agricultural commodities between producers and manufacturers—in linking corporate sustainability ambitions to on-the-ground impacts. Drawing on a systematic analysis of the major transnational corporations trading cocoa, coffee, and palm oil, we present advantages and potential pitfalls of relying on traders as implementers of sustainability governance and outline a future research agenda that focuses on producer-level impacts, changes in supply chain organization and power dynamics, and traders' interactions with state and other nonstate actors. At the intersection of supply chain management, political economy, geography, and global governance, research on traders as key sustainability governance actors also provides novel opportunities for interdisciplinary work and stakeholder engagement.     

How to define an environmental policy to improve corporate sustainability in developing countries

Continual efforts to work with government and society are crucial to persuade businesses to become even better engaged in sustainability practices in developing countries. This study rebuilds the SCP (structure–conduct–performance) paradigm to incorporate environmental variables and to address the environmental strategy choices. Grounded theory was adopted in a systematic collection of data in petrochemical, textile and beverage companies established in different Brazilian states. In‐depth personal interview, site visit and documentary evidence were coded and analysed. The empirical results demonstrate that environmental regulation and enforcement, environmental risk and demands from stakeholders play a central role in increasing the corporate commitment to the natural environment. The study defines four strategic generic types of organization, termed variously as sleeper, reactor, defender and innovator, owing to their solutions to environmental issues. This typology contributes as a roadmap for business decision makers to choose the appropriate environmental strategy in a global economy. Copyright © 2008 John Wiley & Sons, Ltd and ERP Environment.     

Environmental management systems and green supply chain management: complements for sustainability?

Some researchers question the legitimacy of EMSs since organizations can claim to have one when in fact they make no attempt to reduce their environmental harm. In instances where EMSs enhance an organization's environmental performance, critics argue that improvements are likely to occur within the organization's operational boundaries rather than being extended throughout the supply chain. However, previous research suggests that the organizational capabilities required to adopt an EMS may facilitate GSCM implementation and the institutional pressures to adopt both management practices are similar. Consequently, EMS adopters may have a greater propensity to expand their focus beyond their organizational boundaries and utilize GSCM practices to minimize system‐wide environmental impacts. This research illuminates the debate by empirically evaluating the relationship between EMS and GSCM practices. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Corporate environmental performance,environmental management and firm risk

Using a sample of 1,632 U.K. firm‐year observations from 2002 to 2013, this paper investigates the impact of multidimensional corporate environmental performance (CEP) on firm risk. Considering two dimensions of CEP, namely environmental management performance (EMP) and environmental operational performance (EOP), we find that EMP serves as an effective mechanism in reducing firm risk, and such an effect is mainly driven by the manufacturing sector. Meanwhile, there is no clear association between EOP and firm risk. However, our findings highlight a moderating effect of EOP on the relationship between negative EMP and firm risk. This provides new insights into the value of multidimensional CEP and suggests that the complex relationship between outcome‐ and process‐based environmental performance is important for understanding the real effects of CEP on firm risk. Our results have important implications for managerial decision‐making in strategy and risk management, as well as for policymaking in environmental regulation.     

Environmental leaders: making a difference. A typology of environmental leaders and recommendations for a differentiated policy approach

In the literature, environmental leaders are often implicitly considered as a homogeneous group of companies. In addition, this proposition underlies much public policymaking that is aimed at supporting companies that go green'. A recent exploratory study conducted in the Netherlands however revealed that environmental leaders are often rather heterogeneous – even if they operate in the same sector. Differences are particularly related to incentives for and barriers to environmental leadership. In this paper we develop a typology of environmental leaders and provide recommendations for a differentiated and more effective public policy approach to supporting environmental leaders. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.     

Gaining from disorder: Making the case for antifragility in purchasing and supply chain management

The purchasing and supply chain management (P&SCM) discipline assumes that supply chains are fragile systems, hence taking a “negative” approach toward disorder. Building on Taleb’s concept of antifragility—the ability to gain from disorder rather than avoiding it—, we challenge this traditional assumption. The COVID-19 pandemic has revealed that some companies were indeed able to gain from disorder, whereas some of those that focused too much on robustness and resilience lost ground. Building robust and resilient supply chains may no longer be enough to thrive in today’s highly volatile business world. This article sparks a new debate by introducing antifragility to the P&SCM literature and provides new directions for future research.     

Managerial perspectives on drivers for and barriers to sustainable supply chain management implementation: Evidence from New Zealand

The purpose of this paper is to examine the factors that drive or prevent companies' implementation of sustainable supply chain management (SSCM) practices. To this end, we interviewed 29 senior managers from 23 New Zealand‐based companies. The key reported drivers were customer expectation, top management commitment, moral and ethical values of managers, reputation management, and economic and operational benefits. Conversely, cost concerns, strategic and structural restraints, supplier and customer issues, and a lack of effective regulations were cited as critical obstacles to SSCM implementation. Thus, the evidence from our findings provides support for both instrumental and normative logics for SSCM implementation. The findings further indicate that, in general, instrumental and normative logics are congruent; however, varied tensions arise when managers seek to simultaneously address competing yet desirable SSCM aspects. Accordingly, we argue that it is imperative to understand, work through, and manage such tensions as balancing divergent sustainability aspects holds considerable potential for successful SSCM implementation.