Supply chain management for circular economy: conceptual framework and research agenda

Abstract

PurposeCircular economy (CE) initiatives are taking hold across both developed and developing nations. Central to these initiatives is the reconfiguration of core supply chain management (SCM) processes that underlie current production and consumption patterns. This conceptual article provides a detailed discussion of how supply chain processes can support the successful implementation of CE. The article highlights areas of convergence in hopes of sparking collaboration among scholars and practitioners in SCM, CE, and related fields.Design/methodology/approachThis article adopts a theory extension approach to conceptual development that uses CE as a “method” for exploring core processes within the domain of SCM. The article offers a discussion of the ways in which the five principles of CE (closing, slowing, intensifying, narrowing, dematerialising loops) intersect with eight core SCM processes (customer relationship management, supplier relationship management, customer service management, demand management, order fulfilment, manufacturing flow management, product development and commercialization, returns management).FindingsThis article identifies specific ways in which core SCM processes can support the transition from traditional linear approaches to production and consumption to a more circular approach. This paper results in a conceptual framework and research agenda for researchers and practitioners working to adapt current supply chain processes to support the implementation of CE.Originality/valueThis article highlights key areas of convergence among scholars and practitioners through a systematic extension of CE principles into the domain of SCM. In so doing, the paper lays out a potential agenda for collaboration among these groups.

The challenge of remanufactured products: the role of returns policy and channel structure to reduce consumers' perceived risk

“…Lastly, as briefly noted at the beginning of this paper, companies are feeling increased pressure from consumers to adopt policies that recognize the importance and value of sustainable business activity (Hickey, 2020). Such activity is particularly relevant in the discussion of initiatives such as “closed-loop supply chain” practice and especially so in the larger scope of what is known as the “circular economy (CE).” Our findings hold some promise for the successful integration of remanufactured products into these initiatives and how the transition from linear to CE begins with an increased focus on the end-consumer as a critically important supply chain partner to develop a successful CE initiative (Hazen et al , 2020). However, much work remains to be undertaken in specifically linking our results to these larger initiatives.…”

“…Prospect theory (Kahneman and Tversky, 1979) accounts for contextual effects and frames event alternatives in terms of gain versus loss and the according risk aversion levels of each situation; it seemingly takes into account both outcomes and consequences. Other psychology-/cognitive-based theories could also be utilized or develop new middle-range theories (Hazen et al, 2020;Russo et al, 2020).…”

Supply Chain Management Analysis Using the Business Process Model and Notation in the Midst of Covid-19 Pandemic

“…Supply Chain Management helps companies achieve effectiveness and efficiency in achieving company goals (Miradji, 2014). Process in Supply Chain Management is also used to support the linear business transition to circular business (Hazen, Russo, Confente, & Pellathy, 2020). This finding shows the importance of using Supply Chain Management in a company.…”

A complexity management approach to servitization: the role of digital platforms

“…We adopted a theory adaptation approach, aiming to "change the scope or perspective of an existing theory by informing it with other theories or perspectives" (Jaakkola, 2020, p. 22). This approach has previously been applied in different fields of management studies, such as environmental sustainability (Hazen et al, 2020;Nylund et al, 2021), marketing (Williams et al, 2020), andmedia (Dal Zotto andOmidi, 2020). Theory adaptation revises a domain theory (the area under study) using a method theory (the theory used for adaptation), and it introduces new perspectives that usually challenge existing constructs, theories and assumptions (Jaakkola, 2020;MacInnis, 2011).…”