A comprehensive framework for sustainable closed-loop supply chain network design

How do corporate social responsibility and green innovation transform corporate green strategy into sustainable firm performance?

As a concern with manufacturing industries, circular economy (CE) practices—often labeled “circular manufacturing (CM)”—are industrial tasks through which several circular economy principles have been integrated. Among these circular manufacturing strategies, “3R” (recycle, refurbish/remanufacture, and reuse/redistribute) is the key strategy that assists the manufacturing industry with closing the loop for sustainability. An effective inclusion and management of 3R lead a firm to a greater likelihood of successfully integrating CE and CM. In recent years, remanufacturing has gained greater prominence, especially with the emergence of technology, including cyber-physical systems. These technologies assist the remanufacturing firm with efficient take-back systems through tracking. However, data transferred through these technologies among value chain partners in remanufacturing are not reliable. Due to the lack of trust and transparency, value chain partners are hesitant to participate in remanufacturing supply chains. To address the limitation of technologies in remanufacturing, blockchain has been introduced to secure the data. Despite the advantages of blockchain technology, practitioners face difficulties in integrating these blockchain technologies into the remanufacturing context. Several earlier studies addressed the challenges of implementing blockchain, but no earlier studies have specifically examined remanufacturing industries, which are entirely different from forward supply chain industries. Concerning the fact, this study identifies the barriers that exist with the implementation of blockchain technology in the application of the remanufacturing sector. A framework has been proposed and validated in a Danish automotive parts remanufacturing company. Multi-criteria decision-making method has been used to identify the effective and most influential barriers among common barriers. Results reveal that “scaling of technology” (B6) is the key barrier of BCT implementation in remanufacturing context. This study concludes with useful discussions based on the results along with the recommendations to eradicate those influential barriers and their respective impacts on SDGs (SDG4, SDG8, SDG9, and SDG17). Finally, this study sheds light on future enhancements on the integration of blockchain technology in remanufacturing to reap several benefits of circular manufacturing. 

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Tunneling the barriers of blockchain technology in remanufacturing for achieving sustainable development goals: A circular manufacturing perspective

In the real world, there are complex decision-making problems in which a variety of intertwined factors and hierarchical structures exist, and it is difficult or impossible to solve these problems using classical methods. The prioritization of circular economy (CE) adoption barriers is one such complex problem that cannot be solved using current classical methods. Hence, in this paper, for the first time, a new method, namely, FBWDS, is developed. FBWDS derives from the combination of fuzzy best–worst method (BWM), fuzzy decision-making trial and evaluation laboratory (DEMATEL), and Supermatrix structure. This proposed method establishes weights of the intertwined factors in hierarchical networks under uncertainty; these weighted factors and their interdependencies are calculated using the fuzzy BWM and fuzzy DEMATEL techniques, respectively. In addition, the Supermatrix structure is applied to integrate the results of these two techniques. The proposed approach efficiency is evaluated in the field of the CE adoption barriers using data from a cable and wire industry in Iran. The results showed that “high setup costs,” “financial limitations,” and “absence of public awareness about CE” rank as the most challenging barriers, and “lack of standards for designing recycled products” and “absence of standard system to evaluate performance” are the least important barriers to CE adoption in the cable and wire industry. 

Circular economy adoption barriers: An extended fuzzy best–worst method using fuzzy DEMATEL and Supermatrix structure

Digitalization has the potential to hasten the economic transition towards a more resource-efficient as well as robust circular production system. However, there is a paucity of empirical research on the influence that digitalization has on the ability of a circular economy to function effectively. The objective of this study was to investigate the effect that digitalization has on the performance of the circular economy. The research was based on an empirical analysis of quantitative data obtained from a sample size of 200 investors and entrepreneurs in the financial sector of Kozani, Greece. Regression results showed that there is a positive relationship between digital practices and performance of a circular economy, and that digital business innovations have a positive effect on performance of a circular economy. Even while a sizeable proportion of Greek companies apply new business innovations to support the strategy of resource efficiency, it is abundantly obvious that this percentage is far higher among industrial organizations that place a heavy focus on digitalization. According to the findings of the research, there is a favorable correlation between the adoption of digital business practices and innovations and the success of circular economies. This demonstrates very clearly that digitalization has the potential to function as a driving force behind the development of circular business models.

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The Impact of Digitalization in Supporting the Performance of Circular Economy: A Case Study of Greece

Sustainable supply chain management (SSCM) has been developed for decades as a solution for multi-level social and environmental improvement. Circular economy (CE) also has many perspectives and generally has been introduced for investigating sustainability at multiple levels. Organizations are informed and encouraged by management theories to build their supply chain strategies at the SSCM-CE nexus, including stakeholder theory, institutional theory, nature resource-based view, amongst others. As the scholarly and practical interests in SSCM and CE increase, there is a need to expand the current conceptual understanding and theoretical boundaries. Theory development for broader issues at the SSCM-CE nexus is limited, leaving managers, policy makers, civil society activists, and other stakeholders with insufficient grounding for important decisions and direction. In this paper, we explore some promising emerging theories which may provide additional conceptual lenses for SSCM and CE, inlcuding organizational learning, social innovation, and social learning. We develop a dynamic sustainable supply chain-circular economy management framework as a conceptual map over which theoretical boundaries from the existing and emergent theories are overlaid. Future research directions are also provided and discussed to conclude this paper.

Samuel D. Allen

Papers

Expanding conceptual boundaries of the sustainable supply chain management and circular economy nexus

How can the circular economy-digitalization infrastructure support transformation to strong sustainability?