IDEAS home Printed from https://ideas.repec.org/a/gam/jlogis/v6y2022i4p77-d959105.html
   My bibliography  Save this article

Supply Chain Relationships in Circular Business Models: Supplier Tactics at Royal Smit Transformers

Author

Listed:
  • Marlies van Tilburg

    (Department of Supply Chain & Sustainable Logistics, Royal Smit Transformers B.V., 6531 JC Nijmegen, The Netherlands
    Department of Marketing & Supply Chain Management, Open Universiteit, The Netherlands, 6419 AT Heerlen, The Netherlands)

  • Harold Krikke

    (Department of Marketing & Supply Chain Management, Open Universiteit, The Netherlands, 6419 AT Heerlen, The Netherlands)

  • Wim Lambrechts

    (Department of Marketing & Supply Chain Management, Open Universiteit, The Netherlands, 6419 AT Heerlen, The Netherlands)

Abstract

Background: Despite growing popularity, Circular Economy has not reached its full potential. One of the frequently mentioned success factors is the adoption of a Circular Business Model. However, fueled by (too) many constraints, its implementation is often hampered by so-called vicious cycles. Successful Circular Business Models require intensive collaboration between buyers and suppliers, with one of the key questions remaining who takes the initiative and leads the development: buyer or supplier? Methods: Through a single case study combining desk research, interviews, participative observations and analysis of vicious cycles, we investigate how supply chain relationships managed by the supplier can enhance the implementation of Circular Business Models. Results: We show that supplier tactics can relax constraints and break vicious cycles through (1) buyer–supplier relationship management, (2) functional integration of stakeholders and (3) incentive management. We also show that, due to supplier captive conditions, a number of enabling factors are indispensable, namely: (1) the availability of buyer incentives; (2) (joint experimenting to develop) circular knowledge; (3) sharing clear visions on circularity; (4) being transparent in possibilities; and (5) supply chain leadership. Conclusions: As a consequence, strategic trust-based partnerships are a prerequisite for turning vicious cycles into virtuous cycles. Future research should also investigate the role of the buyer, including buyer captive conditions, and how to shape supply chain leadership. Finally, the role of supplier tactics in relation to other success factors next to Circular Business Models needs to be further explored.

Suggested Citation

  • Marlies van Tilburg & Harold Krikke & Wim Lambrechts, 2022. "Supply Chain Relationships in Circular Business Models: Supplier Tactics at Royal Smit Transformers," Logistics, MDPI, vol. 6(4), pages 1-24, October.
    • Handle: RePEc:gam:jlogis:v:6:y:2022:i:4:p:77-:d:959105
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2305-6290/6/4/77/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2305-6290/6/4/77/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Kirchherr, Julian & Piscicelli, Laura & Bour, Ruben & Kostense-Smit, Erica & Muller, Jennifer & Huibrechtse-Truijens, Anne & Hekkert, Marko, 2018. "Barriers to the Circular Economy: Evidence From the European Union (EU)," Ecological Economics, Elsevier, vol. 150(C), pages 264-272.
    2. George Lăzăroiu & Luminița Ionescu & Cristian Uță & Iulian Hurloiu & Mihai Andronie & Irina Dijmărescu, 2020. "Environmentally Responsible Behavior and Sustainability Policy Adoption in Green Public Procurement," Sustainability, MDPI, vol. 12(5), pages 1-12, March.
    3. Tom Lahti & Joakim Wincent & Vinit Parida, 2018. "A Definition and Theoretical Review of the Circular Economy, Value Creation, and Sustainable Business Models: Where Are We Now and Where Should Research Move in the Future?," Sustainability, MDPI, vol. 10(8), pages 1-19, August.
    4. Cees J. Gelderman & Jos Schijns & Wim Lambrechts & Simon Vijgen, 2021. "Green marketing as an environmental practice: The impact on green satisfaction and green loyalty in a business‐to‐business context," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2061-2076, May.
    5. V. Daniel R. Guide & Terry P. Harrison & Luk N. Van Wassenhove, 2003. "The Challenge of Closed-Loop Supply Chains," Interfaces, INFORMS, vol. 33(6), pages 3-6, December.
    6. Arnold Tukker, 2004. "Eight types of product–service system: eight ways to sustainability? Experiences from SusProNet," Business Strategy and the Environment, Wiley Blackwell, vol. 13(4), pages 246-260, July.
    7. Choi, Tsan-Ming & Li, Yongjian & Xu, Lei, 2013. "Channel leadership, performance and coordination in closed loop supply chains," International Journal of Production Economics, Elsevier, vol. 146(1), pages 371-380.
    8. Elli Verhulst & Casper Boks, 2012. "The role of human factors in the adoption of sustainable design criteria in business: evidence from Belgian and Dutch case studies," International Journal of Innovation and Sustainable Development, Inderscience Enterprises Ltd, vol. 6(2), pages 146-163.
    9. Md. Abdul Moktadir & Anil Kumar & Syed Mithun Ali & Sanjoy Kumar Paul & Razia Sultana & Jafar Rezaei, 2020. "Critical success factors for a circular economy: Implications for business strategy and the environment," Business Strategy and the Environment, Wiley Blackwell, vol. 29(8), pages 3611-3635, December.
    10. Alvarez-Gil, M Jose & Berrone, Pascual & Husillos, F. Javier & Lado, Nora, 2007. "Reverse logistics, stakeholders' influence, organizational slack, and managers' posture," Journal of Business Research, Elsevier, vol. 60(5), pages 463-473, May.
    11. 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.
    12. Harpreet Kaur & Surya Prakash Singh, 2019. "Flexible dynamic sustainable procurement model," Annals of Operations Research, Springer, vol. 273(1), pages 651-691, February.
    13. Mateusz Lewandowski, 2016. "Designing the Business Models for Circular Economy—Towards the Conceptual Framework," Sustainability, MDPI, vol. 8(1), pages 1-28, January.
    14. Pejvak Oghazi & Rana Mostaghel, 2018. "Circular Business Model Challenges and Lessons Learned—An Industrial Perspective," Sustainability, MDPI, vol. 10(3), pages 1-19, March.
    15. Claire Veit & Wim Lambrechts & Lieven Quintens & Janjaap Semeijn, 2018. "The Impact of Sustainable Sourcing on Customer Perceptions: Association by Guilt from Scandals in Local vs. Offshore Sourcing Countries," Sustainability, MDPI, vol. 10(7), pages 1-18, July.
    16. Arshinder & Kanda, Arun & Deshmukh, S.G., 2008. "Supply chain coordination: Perspectives, empirical studies and research directions," International Journal of Production Economics, Elsevier, vol. 115(2), pages 316-335, October.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ana Alexandra Mocanu & Gabriel Brătucu & Eliza Ciobanu & Ioana Bianca Chițu & Anita Cornelia Szakal, 2024. "Can the Circular Economy Unlock Sustainable Business Growth? Insights from Qualitative Research with Specialists in Romania," Sustainability, MDPI, vol. 16(5), pages 1-28, February.
    2. Mojtaba Arab Momeni & Vipul Jain & Mehdi Bagheri, 2024. "A Multi-Objective Model for Designing a Sustainable Closed-Loop Supply Chain Logistics Network," Logistics, MDPI, vol. 8(1), pages 1-25, March.

    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. Maryam Hina & Chetna Chauhan & Rajat Sharma & Amandeep Dhir, 2023. "Circular economy business models as pillars of sustainability: Where are we now, and where are we heading?," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 6182-6209, December.
    2. Gabi Försterling & Ronald Orth & Benjamin Gellert, 2023. "Transition to a Circular Economy in Europe through New Business Models: Barriers, Drivers, and Policy Making," Sustainability, MDPI, vol. 15(10), pages 1-40, May.
    3. Rocío González-Sánchez & Davide Settembre-Blundo & Anna Maria Ferrari & Fernando E. García-Muiña, 2020. "Main Dimensions in the Building of the Circular Supply Chain: A Literature Review," Sustainability, MDPI, vol. 12(6), pages 1-25, March.
    4. Alisha Tuladhar & Konstantinos Iatridis & Dimo Dimov, 2024. "Collaboration among circular start‐ups and incumbents in the circular economy context," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3317-3330, May.
    5. 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.
    6. Helen Toxopeus & Elisa Achterberg & Friedemann Polzin, 2021. "How can firms access bank finance for circular business model innovation?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(6), pages 2773-2795, September.
    7. Jing Shao & Cedric Aneye & Alyona Kharitonova & Wei Fang, 2023. "Essential innovation capability of producer‐service enterprises towards circular business model: Motivators and barriers," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4548-4567, November.
    8. Ana Carolina Bertassini & Aldo Roberto Ometto & Semih Severengiz & Mateus Cecilio Gerolamo, 2021. "Circular economy and sustainability: The role of organizational behaviour in the transition journey," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 3160-3193, November.
    9. Pina Puntillo, 2023. "Circular economy business models: Towards achieving sustainable development goals in the waste management sector—Empirical evidence and theoretical implications," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(2), pages 941-954, March.
    10. Nine Klaassen & Arno Scheepens & Bas Flipsen & Joost Vogtlander, 2020. "Eco-Efficient Value Creation of Residential Street Lighting Systems by Simultaneously Analysing the Value, the Costs and the Eco-Costs during the Design and Engineering Phase," Energies, MDPI, vol. 13(13), pages 1-18, June.
    11. Nancy Bocken & Lars Strupeit & Katherine Whalen & Julia Nußholz, 2019. "A Review and Evaluation of Circular Business Model Innovation Tools," Sustainability, MDPI, vol. 11(8), pages 1-25, April.
    12. Vinit Parida & Joakim Wincent, 2019. "Why and how to compete through sustainability: a review and outline of trends influencing firm and network-level transformation," International Entrepreneurship and Management Journal, Springer, vol. 15(1), pages 1-19, March.
    13. 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).
    14. 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.
    15. Marlin Hoffman & Catherina J. Schenck & Frederick Herbst, 2022. "Exploring the Intersection Where Business Models, a Circular Economy and Sustainability Meet in the Waste Economy: A Scoping Review," Sustainability, MDPI, vol. 14(6), pages 1-14, March.
    16. Kühl, Carl & Bourlakis, Michael & Aktas, Emel & Skipworth, Heather, 2022. "Product-service systems and circular supply chain practices in UK SMEs: The moderating effect of internal environmental orientation," Journal of Business Research, Elsevier, vol. 146(C), pages 155-165.
    17. Johannes Matschewsky, 2019. "Unintended Circularity?—Assessing a Product-Service System for its Potential Contribution to a Circular Economy," Sustainability, MDPI, vol. 11(10), pages 1-27, May.
    18. Friedrich A. Halstenberg & Kai Lindow & Rainer Stark, 2019. "Leveraging Circular Economy through a Methodology for Smart Service Systems Engineering," Sustainability, MDPI, vol. 11(13), pages 1-36, June.
    19. 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.
    20. Sara Alonso-Muñoz & Rocío González-Sánchez & Cristina Siligardi & Fernando Enrique García-Muiña, 2021. "Building Exploitation Routines in the Circular Supply Chain to Obtain Radical Innovations," Resources, MDPI, vol. 10(3), pages 1-18, March.

    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:gam:jlogis:v:6:y:2022:i:4:p:77-:d:959105. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.