Circular Economy in Spanish SMEs: Challenges and opportunities

Ormazábal, Marta; Prieto‐Sandoval, Vanessa; Puga-Leal, Rogério; Jaca, Carmen

doi:10.1016/j.jclepro.2018.03.031

Cited by 359 publications

(347 citation statements)

References 37 publications

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“…Based on the review of the literature on the strategies, advantages and difficulties encountered in adopting the circular economy, a quantitative research study was carried out, including a wide range of areas of activity captured by SMEs, providing knowledge that can support successful actions for the implementation of the circular economy [60][61][62]. In Romania, according to the answers provided by the managers of the interviewed SMEs, the circular economy is seen as a significant strategic issue.…”

Section: Discussionmentioning

confidence: 99%

The Sustainability of Romanian SMEs and Their Involvement in the Circular Economy

et al. 2018

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Sustainability involves extending the relational framework of SMEs outside the sphere of economic activity by justifying and legitimizing actions with a social impact on the environment. Links with the circular economy are achieved through the economic and environmental dimensions and through corporate social responsibility as a component of sustainable development. The main purpose of the paper was to determine the level of involvement of Romanian SMEs in activities related to the circular economy. The sample survey conducted among SME managers offered the advantage of collecting a large amount of direct information on the activities undertaken, the size of the investments and the nature of the funding sources used over the last five years. In this descriptive research, the process of setting up a representative sample of 384 enterprises was carried out by random sampling. The major contributions of the research project are to outline the contribution of Romanian SMEs to the development of a sustainable economy through their involvement in specific activities, the size of the investments made, and the level of participation of representatives of the enterprises in courses in order to identify new sources of financing and positive solutions in order to implement the principles of the circular economy.

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Section: Discussionmentioning

confidence: 99%

The Sustainability of Romanian SMEs and Their Involvement in the Circular Economy

et al. 2018

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“…Notably, Inigo, Albareda, and Ritala () examined how firms build and draw new organizational capabilities, routines, and processes to identify, design, and develop business model innovation for sustainability. Some scholars show that firms are unable to adopt CE business models because they usually face many challenges and barriers such as financial, operational, organizational, attitudinal, and technological barriers (Geng & Doberstein, ; Ormazabal et al, ; Ritzén & Sandström, ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…In theory, the ideas underpinning the concept of CE seem very simple and convincing and point to a straightforward strategy (Haas, Krausmann, Wiedenhofer, & Heinz, ). However, in practice, firms are not easily able to translate the concept of CE into their corporate strategies, business models, and operations due to many technical and non‐technical barriers (Geng & Doberstein, ; Ormazabal, Prieto‐Sandoval, Puga‐Leal, & Jaca, ).…”

Section: Introductionmentioning

confidence: 99%

Microfoundations of dynamic capabilities: Insights from circular economy business cases

2020

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Circular economy is a key strategy to achieve corporate sustainability. However, so far, most firms are unable to translate the concept of circular economy into their corporate strategies, business models, and operations. Some scholars have argued that firms need to develop new (and dynamic) capabilities for circular economy implementation. Yet there is a little discussion on how firms can develop such capabilities. Notably, there is a paucity of research on specific skills, processes, and organizational activities (microfoundations of dynamic capabilities) that may facilitate circular economy implementation. To address this knowledge gap, using a multiple‐case studies approach, we explore microfoundations of dynamic capabilities in successful circular economy business cases. Our findings indicate that dynamic capabilities positively contribute to circular economy implementation. Our case studies show that case firms identified circular economy opportunities by using four microfoundations of sensing capability. Further, case firms acted on the identified opportunities by using simultaneously three microfoundations of seizing capability and four microfoundations of reconfiguring capability. This paper contributes to the literature on the relations between dynamic capabilities and corporate sustainability by providing insights on how sensing, seizing, and reconfiguring dynamic capabilities act in successful operationalization of circular economy strategies.

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Section: Introductionmentioning

confidence: 99%

“…Entrepreneurial success stories, like the abovementioned, suggest the presence of strong economic returns to circular EI investments reflected in growth and profitability (Ghisellini et al, 2016) even though there is little systematic evidence to generalize this to the broader population of start-ups and small businesses. Integration of SMEs to the CE remains a challenge despite their significant numbers and economic impact in Europe (Ormazabal, Prieto-Sandoval, Puga-Leal, & Jaca, 2018;Rizos, Behrens, Kafyeke, Hirschnitz-Garbera, & Ioannou, 2015). This paper examines the relationship between circular EI and firm growth among Europe's small-and medium-sized enterprises (SMEs) based on a unique database of 5,100 SMEs from 28 EU countries acquired by the Flash EuroBarometer 441 survey (European SMEs and the CE) in 2016.…”

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confidence: 99%

Eco‐innovation and firm growth in the circular economy: Evidence from European small‐ and medium‐sized enterprises

2019

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As the circular economy (CE) concept gains growing popularity among consumers and producers, small‐ and medium‐sized enterprises (SMEs) increasingly look for ways to reorganize their offering and operations to integrate into the CE. This study examines the impact of (a) circular eco‐innovations and (b) external funding available for CE activities on the growth of European SMEs using a data set of 5,100 SMEs across 28 European countries in 2016. Findings reveal that a significant threshold investment (i.e., higher than 10% of revenues) into circular eco‐innovations is required for SMEs to benefit from investing into the CE. Moreover, the majority of circular eco‐innovations fail to boost the growth rates of SMEs, with the exception of investments into eco‐design innovations. Although traditional forms of debt and grant finance targeted to CE activities are found to have no or negative impact on the growth of SMEs, equity finance (i.e., angel and venture capital investments) contributes positively to their growth. The study offers insights into the lower levels of SME engagement in the CE as well as policy implications for improving engagement.

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Circular Economy in Spanish SMEs: Challenges and opportunities

Cited by 359 publications

References 37 publications

The Sustainability of Romanian SMEs and Their Involvement in the Circular Economy

The Sustainability of Romanian SMEs and Their Involvement in the Circular Economy

Microfoundations of dynamic capabilities: Insights from circular economy business cases

Eco‐innovation and firm growth in the circular economy: Evidence from European small‐ and medium‐sized enterprises

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