Designing circular supply chains in start-up companies: evidence from Italian fashion and construction start-ups

Abstract

PurposeThe theory of complex adaptive systems (CASs) represents an interesting perspective to study the characteristics of circular supply chains (CSCs). In this regard, the current literature lacks evidence regarding coordination and integration mechanisms, characteristics of the environment and emerging system properties of CSCs. This paper aims to fill this gap and focuses on how and why companies design (i.e. configure and coordinate) their CSCs and what value these design choices help to create across different industries.Design/methodology/approachThe authors use a multiple case study approach and analyze data collected from a sample of five sustainable start-ups operating in the fashion and construction industries in Italy to better understand how these companies design (i.e. configure and coordinate) their CSCs.FindingsResults reveal that in the two industries under investigation, the design of CSCs built around open and closed–loop logic is triggered by the intention to solve a negative sustainability impact. The sustainability impact determines whether the value is restored within the same supply chain, in another, or inside or outside the same industry. Interestingly, start-ups appear to coordinate other CSC actors with three leading roles: (1) orchestrator, (2) integrated orchestrator and (3) circular manufacturer. The coordination role of the start-ups differs in each supply chain configuration based on the level of vertical integration of manufacturing activities.Originality/valueFrom a theoretical perspective, the authors' results expand previous supply chain management (SCM) literature by presenting an empirical analysis of the configuration and coordination of CSCs, and discussing the drivers for creating such circularity from a CAS perspective. From a managerial perspective, the authors offer a practical experience to entrepreneurs on how to transform circular and sustainable business model aspirations into CSC practices.

Evolving trajectories of circular supply chain domain: a citation path analysis

“…Lack of awareness among people and insufficient infrastructure were identified as major barriers in Expanded Polystyrene (EPS) supply chain. Enablers for implementing circularity include support from top management, environment-friendly organizational culture and collaboration across the supply chain echelons (Ciccullo et al. , 2023; Tseng et al.…”

“…(2021) concluded that support by managers, collaboration across the SC and willingness to accept and promote organizational change could enhance industrial performance. Ciccullo et al. (2023) reiterated the significance of coordination among the supply chain actors to achieve circularity.…”

“…This could be done by remanufacturing, refurbishing and recycling products. (Ciccullo et al, 2023;Tseng et al, 2021).…”

Guest editorial: Empirically grounded research in logistics and supply chain management for a circular economy

“…Adopting a complex adaptive systems perspective, Ciccullo et al (2023) explore why and how start-ups design CSCs. Case studies of five Italian start-ups in the fashion and construction industries show their CSC design employ open and closed-loop circularity logic.…”

“…Adopting a complex adaptive systems perspective, Ciccullo et al . (2023) explore why and how start-ups design CSCs.…”