Building Exploitation Routines in the Circular Supply Chain to Obtain Radical Innovations

Abstract

The adaptation of the supply chain makes it an effective tool in the management of a circular economy, as it allows aspects of sustainability and regeneration to be incorporated into production. However, empirical evidence is still insufficient. In addition, the use of absorptive capacity theory provides a convenient context model that is adapted to the knowledge management required for the application of circularity principles. To study in depth the functioning of the circular supply chain, we use the dimension of exploitation of absorptive capacity, distinguishing between routines that allow adaptation to new production needs (technological knowledge) and new commercial needs (market knowledge). The empirical study was conducted on a sample of 9612 companies, divided into three levels of technology intensity manufacturing, from the PITEC panel using multivariate models. The results show that the operating routines associated with the use of production and logistics technologies developed in a circular fashion favor the development of new products. Similarly, a bidirectional knowledge flow is necessary. The first flow is toward the company with practices that allow a better understanding of the customer and their needs in the framework of the circular economy. The second flow would be toward customers, who need to be informed and educated through various marketing and communication activities to adapt their behavior to the principles of circularity.

The circular economy, environmental performance and environmental management systems: the role of absorptive capacity

“…To the best of our knowledge, only two studies discussed ACAP in the context of the circular economy. In fact, Alonso-Muñoz et al (2021) considered the use of ACAP in the framework of the circular economy, even though they focussed on supply chain management. While Marrucci et al (2021c) limited the analysis on the connections between ACAP and circular economy to a qualitative assessment.…”

New Circular Networks in Resilient Supply Chains: An External Capital Perspective

“…This enables the incorporation of new raw materials and new processes and the recovery of end-of-life products into the manufacturing and distribution processes. To this end, connection and trust must be fostered through more active and transparent knowledge and information flows [20].…”

“…It is necessary to incorporate a new framework that regenerates the relationships in the most sustainable way possible. In this way, the application of the principles of circularity would facilitate this transformation [18][19][20].…”

“…The circular economy represents a further step forward in the field of sustainability by breaking with the linear production model with substantial modifications in both operations and relationships [20]. The principles of circularity can provide the supply chain with greater resilience and a more flexible response to future disasters [21].…”

Disruption in Resource-Intensive Supply Chains: Reshoring and Nearshoring as Strategies to Enable Them to Become More Resilient and Sustainable

“…To respond to unforeseen market shocks, it is therefore vital to diversify supply sources and create new supply chains that are more resilient, agile, flexible [6,7], and green [8], as well as to reduce the carbon footprint of supply chains [9]. The use of proper design tools and a cross-disciplinary approach to innovation [10], i.e., not just the simple overlap of technical and managerial expertise but also their successful integration, can effectively help the management of this transition [11].…”