IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v32y2023i7p4584-4599.html
   My bibliography  Save this article

The circular economy and its benefits for pro‐environmental companies

Author

Listed:
  • Paweł Nowicki
  • Marek Ćwiklicki
  • Piotr Kafel
  • Janusz Niezgoda
  • Magdalena Wojnarowska

Abstract

An increasingly visible trend among enterprises is the belief that one of the most effective ways of achieving growth is through the transition from the current ‘linear’ business model to a circular economy. This approach enables enterprises to create a pro‐environmental image and, at the same time, obtain a number of benefits. The purpose of this article is to demonstrate the dependencies involved in meeting the requirements of a circular economy through the implementation of individual activities in the 9R framework in the context of the tools used and the benefits obtained. The research shows that such organisations can obtain a wide range of economic, operational, and social benefits, as leaders in forging a pro‐environmental approach. However, they must use already available tools on a larger scale and implement and propagate actions that fit into the 9R strategies framework.

Suggested Citation

  • Paweł Nowicki & Marek Ćwiklicki & Piotr Kafel & Janusz Niezgoda & Magdalena Wojnarowska, 2023. "The circular economy and its benefits for pro‐environmental companies," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4584-4599, November.
  • Handle: RePEc:bla:bstrat:v:32:y:2023:i:7:p:4584-4599
    DOI: 10.1002/bse.3382
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3382
    Download Restriction: no

    File URL: https://libkey.io/10.1002/bse.3382?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Vasileios Rizos & Arno Behrens & Wytze Van der Gaast & Erwin Hofman & Anastasia Ioannou & Terri Kafyeke & Alexandros Flamos & Roberto Rinaldi & Sotiris Papadelis & Martin Hirschnitz-Garbers & Corrado , 2016. "Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers," Sustainability, MDPI, vol. 8(11), pages 1-18, November.
    2. Zhalechian, M. & Tavakkoli-Moghaddam, R. & Zahiri, B. & Mohammadi, M., 2016. "Sustainable design of a closed-loop location-routing-inventory supply chain network under mixed uncertainty," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 89(C), pages 182-214.
    3. Choudhary, Alok & Sarkar, Sagar & Settur, Srikar & Tiwari, M.K., 2015. "A carbon market sensitive optimization model for integrated forward–reverse logistics," International Journal of Production Economics, Elsevier, vol. 164(C), pages 433-444.
    4. Fraccascia, Luca & Albino, Vito & Garavelli, Claudio A., 2017. "Technical efficiency measures of industrial symbiosis networks using enterprise input-output analysis," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 273-286.
    5. Sgarbossa, Fabio & Russo, Ivan, 2017. "A proactive model in sustainable food supply chain: Insight from a case study," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 596-606.
    6. Nasir, Mohammed Haneef Abdul & Genovese, Andrea & Acquaye, Adolf A. & Koh, S.C.L. & Yamoah, Fred, 2017. "Comparing linear and circular supply chains: A case study from the construction industry," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 443-457.
    7. Kannan Govindan & Mia Hasanagic, 2018. "A systematic review on drivers, barriers, and practices towards circular economy: a supply chain perspective," International Journal of Production Research, Taylor & Francis Journals, vol. 56(1-2), pages 278-311, January.
    8. Julia Hertin & Frans Berkhout & Marcus Wagner & Daniel Tyteca, 2008. "Are EMS environmentally effective? The link between environmental management systems and environmental performance in European companies," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 51(2), pages 259-283.
    9. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    10. Matthias Walz & Edeltraud Guenther, 2021. "What effects does material flow cost accounting have for companies?: Evidence from a case studies analysis," Journal of Industrial Ecology, Yale University, vol. 25(3), pages 593-613, June.
    11. Wang, Wenbin & Zhang, Yu & Zhang, Kai & Bai, Tuo & Shang, Jennifer, 2015. "Reward–penalty mechanism for closed-loop supply chains under responsibility-sharing and different power structures," International Journal of Production Economics, Elsevier, vol. 170(PA), pages 178-190.
    12. Chaabane, A. & Ramudhin, A. & Paquet, M., 2012. "Design of sustainable supply chains under the emission trading scheme," International Journal of Production Economics, Elsevier, vol. 135(1), pages 37-49.
    13. Jean Kabongo & Olivier Boiral, 2011. "Creating Value with Wastes: A Model and Typology of Sustainability Within Firms," Business Strategy and the Environment, Wiley Blackwell, vol. 20(7), pages 441-455, November.
    14. Kenné, Jean-Pierre & Dejax, Pierre & Gharbi, Ali, 2012. "Production planning of a hybrid manufacturing–remanufacturing system under uncertainty within a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 135(1), pages 81-93.
    15. Katriina Alhola & Sven‐ Olof Ryding & Hanna Salmenperä & Niels Juul Busch, 2019. "Exploiting the Potential of Public Procurement: Opportunities for Circular Economy," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 96-109, February.
    16. Florian Lüdeke‐Freund & Stefan Gold & Nancy M. P. Bocken, 2019. "A Review and Typology of Circular Economy Business Model Patterns," Journal of Industrial Ecology, Yale University, vol. 23(1), pages 36-61, February.
    17. Marcel C. Hollander & Conny A. Bakker & Erik Jan Hultink, 2017. "Product Design in a Circular Economy: Development of a Typology of Key Concepts and Terms," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 517-525, June.
    18. Willi Haas & Fridolin Krausmann & Dominik Wiedenhofer & Markus Heinz, 2015. "How Circular is the Global Economy?: An Assessment of Material Flows, Waste Production, and Recycling in the European Union and the World in 2005," Journal of Industrial Ecology, Yale University, vol. 19(5), pages 765-777, October.
    19. Liu, Dehai & Li, Hongyi & Wang, Weiguo & Dong, Yucheng, 2012. "Constructivism scenario evolutionary analysis of zero emission regional planning: A case of Qaidam Circular Economy Pilot Area in China," International Journal of Production Economics, Elsevier, vol. 140(1), pages 341-356.
    20. Maryam Esmaeili & Ghazaleh Allameh & Taraneh Tajvidi, 2016. "Using game theory for analysing pricing models in closed-loop supply chain from short- and long-term perspectives," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 2152-2169, April.
    21. Nuttasorn Ketprapakorn & Sooksan Kantabutra, 2019. "Sustainable Social Enterprise Model: Relationships and Consequences," Sustainability, MDPI, vol. 11(14), pages 1-39, July.
    22. Marcus Linder & Mats Williander, 2017. "Circular Business Model Innovation: Inherent Uncertainties," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 182-196, February.
    23. Smol, Marzena & Kulczycka, Joanna, 2019. "Towards innovations development in the European raw material sector by evolution of the knowledge triangle," Resources Policy, Elsevier, vol. 62(C), pages 453-462.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. German Arana‐Landin & Waleska Sigüenza & Beñat Landeta‐Manzano & Iker Laskurain‐Iturbe, 2024. "Circular economy: On the road to ISO 59000 family of standards," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(3), pages 1977-2009, May.
    2. Graziela Darla Araujo Galvão & Steve Evans & Paulo Sergio Scoleze Ferrer & Marly Monteiro de Carvalho, 2022. "Circular business model: Breaking down barriers towards sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1504-1524, May.
    3. Ekta Sinha, 2022. "Circular economy—A way forward to Sustainable Development: Identifying Conceptual Overlaps and Contingency Factors at the Microlevel," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(4), pages 771-783, August.
    4. Antonella Zucchella & Pietro Previtali & Roger Strange, 2022. "Proactive and reactive views in the transition towards circular business models. A grounded study in the plastic packaging industry," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1073-1102, September.
    5. Marcos Ferasso & Tatiana Beliaeva & Sascha Kraus & Thomas Clauss & Domingo Ribeiro‐Soriano, 2020. "Circular economy business models: The state of research and avenues ahead," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3006-3024, December.
    6. Dey, Prasanta Kumar & Malesios, Chrysovalantis & Chowdhury, Soumyadeb & Saha, Krishnendu & Budhwar, Pawan & De, Debashree, 2022. "Adoption of circular economy practices in small and medium-sized enterprises: Evidence from Europe," International Journal of Production Economics, Elsevier, vol. 248(C).
    7. Rodríguez-Espíndola, Oscar & Cuevas-Romo, Ana & Chowdhury, Soumyadeb & Díaz-Acevedo, Natalie & Albores, Pavel & Despoudi, Stella & Malesios, Chrisovalantis & Dey, Prasanta, 2022. "The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs," International Journal of Production Economics, Elsevier, vol. 248(C).
    8. Andrea Tuni & Fiona Gutteridge & Winifred L. Ijomah & Maryam Mirpourian, 2024. "Risks in circular business models innovation: A cross‐industrial case study for composite materials," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 2771-2787, May.
    9. Yamoah, Fred A. & Sivarajah, Uthayasankar & Mahroof, Kamran & Peña, Iker González, 2022. "Demystifying corporate inertia towards transition to circular economy: A management frame of reference," International Journal of Production Economics, Elsevier, vol. 244(C).
    10. Bhavesh Kumar & Love Kumar & Avinash Kumar & Ramna Kumari & Uroosa Tagar & Claudio Sassanelli, 2024. "Green finance in circular economy: a literature review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16419-16459, July.
    11. Arijit Bhattacharya & Shefali Srivastava & Abhijit Majumdar, 2024. "Circular supply chains in manufacturing—Quo vadis? Accomplishments, challenges and future opportunities," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4397-4423, July.
    12. Donato Masi & Steven Day & Janet Godsell, 2017. "Supply Chain Configurations in the Circular Economy: A Systematic Literature Review," Sustainability, MDPI, vol. 9(9), pages 1-22, September.
    13. Animesh Ghosh & Prabha Bhola & Uthayasankar Sivarajah, 2022. "Emerging Associates of the Circular Economy: Analysing Interactions and Trends by a Mixed Methods Systematic Review," Sustainability, MDPI, vol. 14(16), pages 1-41, August.
    14. Wang, Jason X. & Burke, Haydn & Zhang, Abraham, 2022. "Overcoming barriers to circular product design," International Journal of Production Economics, Elsevier, vol. 243(C).
    15. Aro, Joerabell Lourdes & Selerio, Egberto & Evangelista, Samantha Shane & Maturan, Fatima & Atibing, Nadine May & Ocampo, Lanndon, 2022. "Fermatean fuzzy CRITIC-CODAS-SORT for characterizing the challenges of circular public sector supply chains," Operations Research Perspectives, Elsevier, vol. 9(C).
    16. Sara Moggi & Renata Paola Dameri, 2021. "Circular business model evolution: Stakeholder matters for a self‐sufficient ecosystem," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2830-2842, September.
    17. Damini Sundar & Kaliyan Mathiyazhagan & Vernika Agarwal & Mukund Janardhanan & Andrea Appolloni, 2023. "From linear to a circular economy in the e‐waste management sector: Experience from the transition barriers in the United Kingdom," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4282-4298, November.
    18. Malik, Ashish & Sharma, Piyush & Sharma, Piyush & Vinu, Ajayan & Karakoti, Ajay & Kaur, Kamalpreet & Gujral, Harpreet Singh & Munjal, Surender & Laker, Benjamin, 2022. "Circular economy adoption by SMEs in emerging markets: Towards a multilevel conceptual framework," Journal of Business Research, Elsevier, vol. 142(C), pages 605-619.
    19. Hossain, Md. Uzzal & Ng, S. Thomas & Antwi-Afari, Prince & Amor, Ben, 2020. "Circular economy and the construction industry: Existing trends, challenges and prospective framework for sustainable construction," Renewable and Sustainable Energy Reviews, Elsevier, vol. 130(C).
    20. Saskia Manshoven & Wim Van Opstal, 2022. "The Carrot or the Stick? Stakeholder Support for Mandatory Regulations towards a Circular Fashion System," Sustainability, MDPI, vol. 14(22), pages 1-31, November.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:32:y:2023:i:7:p:4584-4599. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.