“…Results overall underline that efforts towards the circular transition by SMEs mainly address internal practices for resource efficiency (category “A” in Figure 1), thus confirming Mura et al (2020) and Nudurupati et al (2022), but also in line with other studies that are not focused on SMEs (Elia et al, 2020; Masi et al, 2018). As proof, the Sustainability Manager from Firm 1 stated: The external part is still under development, not because we are not doing anything but because it is still very unstructured.…”
Section: Resultssupporting
confidence: 87%
“…Moreover, such practices are characterised by a lower level of implementation compared to internal practices for resource efficiency. Nonetheless, half of the investigated firms particularly focus on the selection of suppliers by using environmental criteria, in line withNudurupati et al (2022), although this can be biased due to the number of textile firms included in the investigated sample(Saha et al, 2021). Similarly, although the same number of firms claimed to collaborate with external partners on circular solutions and to promote joint initiatives with other firms by establishing ecoindustrial chains, most of them are still predominantly implementing linear business models, as shown by the limited number of CE practices being implemented.4.2 | Digital technologies adoption and useAn overview of the DTs adopted by the investigated firms and their level of use is offered in Figure2.…”
The adoption of Industry 4.0's digital technologies can enable the implementation of circular economy practices. Nonetheless, current indications for industrial practitioners on how to exploit the broad set of technologies for circular transition appear unclear. This issue is even more challenging for small and medium enterprises, which are typically endowed with more limited resources than larger firms and are characterised by both a digital and circular divide. This present study contributes to the academic debate by offering an exploratory empirical analysis—based on semi‐structured interviews—that involved 10 Italian industrial small and medium enterprises to deepen the knowledge of the supporting role played by digital technologies in implementing circular economy practices by small and medium enterprises, also considering the potential synergies among such technologies. Results are of interest also to industrial decision‐makers, allowing them to exploit their firms' resources towards the adoption of those digital technologies that could be more effective to foster the circular transition.
“…Results overall underline that efforts towards the circular transition by SMEs mainly address internal practices for resource efficiency (category “A” in Figure 1), thus confirming Mura et al (2020) and Nudurupati et al (2022), but also in line with other studies that are not focused on SMEs (Elia et al, 2020; Masi et al, 2018). As proof, the Sustainability Manager from Firm 1 stated: The external part is still under development, not because we are not doing anything but because it is still very unstructured.…”
Section: Resultssupporting
confidence: 87%
“…Moreover, such practices are characterised by a lower level of implementation compared to internal practices for resource efficiency. Nonetheless, half of the investigated firms particularly focus on the selection of suppliers by using environmental criteria, in line withNudurupati et al (2022), although this can be biased due to the number of textile firms included in the investigated sample(Saha et al, 2021). Similarly, although the same number of firms claimed to collaborate with external partners on circular solutions and to promote joint initiatives with other firms by establishing ecoindustrial chains, most of them are still predominantly implementing linear business models, as shown by the limited number of CE practices being implemented.4.2 | Digital technologies adoption and useAn overview of the DTs adopted by the investigated firms and their level of use is offered in Figure2.…”
The adoption of Industry 4.0's digital technologies can enable the implementation of circular economy practices. Nonetheless, current indications for industrial practitioners on how to exploit the broad set of technologies for circular transition appear unclear. This issue is even more challenging for small and medium enterprises, which are typically endowed with more limited resources than larger firms and are characterised by both a digital and circular divide. This present study contributes to the academic debate by offering an exploratory empirical analysis—based on semi‐structured interviews—that involved 10 Italian industrial small and medium enterprises to deepen the knowledge of the supporting role played by digital technologies in implementing circular economy practices by small and medium enterprises, also considering the potential synergies among such technologies. Results are of interest also to industrial decision‐makers, allowing them to exploit their firms' resources towards the adoption of those digital technologies that could be more effective to foster the circular transition.
“…In the same vein, Milios (2021) found that the waste hierarchy tax and government subsidies might highly increase the performance of the recycling sector by studying Sweden. Nudurupati et al (2022) produced similar results after analysing Indian SMEs in different sectors. In line with these studies, Garrido-Prada et al ( 2021) also argue that the research and development (R&D) activities for the CE should be carried out by governments instead of the SMEs, and these activities will become indirect subsidies to the SMEs due to high costs of the R&D activities.…”
Section: The Findings and Further Discussionmentioning
The linear economic (LE) system is increasingly becoming unsustainable as its use and dispose logic mercilessly exploits the environment. As an alternative to this, the circular economy has recently gained popularity. The CE promises a more sustainable system through decreasing resource leakage from the economic system via circulating economic activities from production to consumption. However, there is not a clear blueprint on the institutionalization of the CE. To provide an answer to this problem, this research focused on the Small and Medium Entrepreneurs (the SMEs). After qualitatively analysing the secondary data derived from the literature within an institutionalist theoretical framework, the research found that the structural dependence of the SMEs on the existing LE system prevents them from performing proper CE actions. As a solution, the state emerges as a macro-level rule-breaker, which could play a catalyst role in the SMEs’ transition to the CE. Particularly, it could provide necessary regulative frameworks, financial sources, technological infrastructures, and a circular change in consumers’ attitudes, which are strategically important to drive the SMEs towards the CE system. Therefore, this paper argues that the re-conceptualization of state-market relationship is an initial need to successfully govern an institutional change towards the CE.
“…Many studies are focused on the elements of a successful digital business strategy and the role of government support http://dx.doi.org/10.21511/ppm.20(4).2022.22 (Matt et al, 2015;Fischer et al, 2020). SMEs need a stakeholder collaboration strategy to adopt and develop digitization practices (Nudurupati et al, 2022). Due to the significant investments needed, it could be challenging for SMEs to adopt digital technologies.…”
COVID-19 and Russia’s war against Ukraine have created many challenges for the business models of SMEs, stimulating them to develop alternative forms of business. Among the key alternatives, one should single out digitization. However, imperfections of Ukraine’s state support system for digital transformation necessitate adapting the positive practice of leading countries with excellent business digitalization. Therefore, this paper structures the practical experience of state support of European countries in the digitalization of SMEs. The study conducts a cluster analysis to identify countries whose experience in state support for business digitalization is the best for adoption. Clustering employed the criterion of using key digitization instruments: internet of things, integration of business processes into electronic processes, digital integration with customers/suppliers, cloud services, big data analysis, and artificial intelligence. Thus, 4 clusters were identified (the first cluster comprises 16 countries, the second – 2, the third – 5, and the fourth – 7). These findings contributed to the selection of some key measures. They included: expanding the financial capabilities of SMEs to adopt digital technologies in their processes; formation of digital hard skills among entrepreneurs and increasing the personnel potential of SME digitization; creation of a favorable business environment to stimulate the digital activity of SMEs; and popularization of business digitalization strategy as a component of digital transformation strategy in society.
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