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The Mechanism of Forming the Strategic Potential of an Enterprise in a Circular Economy

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  • Aleksandra Kuzior

    (Faculty of Organization and Management, Silesian University of Technology, 26 Roosevelt Str., 41-800 Zabrze, Poland)

  • Olena Arefieva

    (Faculty of Economics and Business Administration, National Aviation University, 1, Liubomyra Huzara Ave., 030580 Kyiv, Ukraine)

  • Zarina Poberezhna

    (Faculty of Economics and Business Administration, National Aviation University, 1, Liubomyra Huzara Ave., 030580 Kyiv, Ukraine)

  • Oleksiy Ihumentsev

    (Faculty of Economics and Business Administration, National Aviation University, 1, Liubomyra Huzara Ave., 030580 Kyiv, Ukraine)

Abstract

In the framework of this study, significant features of the formation of the strategic potential of the enterprise in a circular economy are identified. The characteristics and elements of the strategic potential of the enterprise, which can ensure its integrity and continuity of operations, are highlighted. The authors conducted and analyzed a theoretical review of the concept of the “circular economy” and its impact on business and resource conservation and environmental protection. The conditions for the transition to a circular economy at the macro level are formed. The key stages of ensuring the strategic potential of the enterprise, taking into account the internal and external environmental factors, are highlighted. The authors forecast the volume and dynamics of waste until 2027 using the Cobb–Douglas function. The mechanism of the formation of the strategic potential of the enterprise in the conditions of a circular economy is offered. This mechanism provides for the potential compliance with the strategic goals of the enterprise, as well as the rationality and balance of structural elements. Assessing the compliance of strategic potential with the developed strategy allows decisions to be made on the implementation of measures to meet the objectives of the enterprise, or to search for opportunities and reserves to improve its level. A set of measures aimed at the effective implementation of the proposed mechanism and the results of resource-efficient production is developed.

Suggested Citation

  • Aleksandra Kuzior & Olena Arefieva & Zarina Poberezhna & Oleksiy Ihumentsev, 2022. "The Mechanism of Forming the Strategic Potential of an Enterprise in a Circular Economy," Sustainability, MDPI, vol. 14(6), pages 1-13, March.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:6:p:3258-:d:768268
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    References listed on IDEAS

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    1. Luca Adami & Marco Schiavon, 2021. "From Circular Economy to Circular Ecology: A Review on the Solution of Environmental Problems through Circular Waste Management Approaches," Sustainability, MDPI, vol. 13(2), pages 1-20, January.
    2. Marie Briguglio & Leandro J. Llorente-González & Christopher Meilak & Ángeles Pereira & Jonathan Spiteri & Xavier Vence, 2021. "Born or Grown: Enablers and Barriers to Circular Business in Europe," Sustainability, MDPI, vol. 13(24), pages 1-20, December.
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    4. Centobelli, Piera & Cerchione, Roberto & Esposito, Emilio & Passaro, Renato & Shashi,, 2021. "Determinants of the transition towards circular economy in SMEs: A sustainable supply chain management perspective," International Journal of Production Economics, Elsevier, vol. 242(C).
    5. Fredrick Betuel Sawe & Anil Kumar & Jose Arturo Garza‐Reyes & Rohit Agrawal, 2021. "Assessing people‐driven factors for circular economy practices in small and medium‐sized enterprise supply chains: Business strategies and environmental perspectives," Business Strategy and the Environment, Wiley Blackwell, vol. 30(7), pages 2951-2965, November.
    6. Marzena Smol & Paulina Marcinek & Eugeniusz Koda, 2021. "Drivers and Barriers for a Circular Economy (CE) Implementation in Poland—A Case Study of Raw Materials Recovery Sector," Energies, MDPI, vol. 14(8), pages 1-19, April.
    7. Tanja van Engelenhoven & Ayalew Kassahun & Bedir Tekinerdogan, 2021. "Circular Business Processes in the State-of-the-Practice: A Survey Study," Sustainability, MDPI, vol. 13(23), pages 1-26, December.
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    Cited by:

    1. Grzegorz Drozdowski & Paweł Dziekański, 2022. "Local Disproportions of Quality of Life and Their Influence on the Process of Green Economy Development in Polish Voivodships in 2010–2020," IJERPH, MDPI, vol. 19(15), pages 1-26, July.
    2. Yuriy Bilan & Yaryna Samusevych & Serhiy Lyeonov & Marcin Strzelec & Iryna Tenytska, 2022. "The Keys to Clean Energy Technology: Impact of Environmental Taxes on Biofuel Production and Consumption," Energies, MDPI, vol. 15(24), pages 1-22, December.
    3. Zhong, Ziqi & Zhao, Elena Yifei, 2024. "Collaborative driving mode of sustainable marketing and supply chain management supported by metaverse technology," LSE Research Online Documents on Economics 121160, London School of Economics and Political Science, LSE Library.

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