IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v16y2024i13p5513-d1424499.html
   My bibliography  Save this article

The Business Model of a Circular Economy in the Innovation and Improvement of Metal Processing

Author

Listed:
  • Manuela Ingaldi

    (Department of Production Engineering and Safety, Faculty of Management, Czestochowa University of Technology, 42-201 Czestochowa, Poland)

  • Robert Ulewicz

    (Department of Production Engineering and Safety, Faculty of Management, Czestochowa University of Technology, 42-201 Czestochowa, Poland)

Abstract

A circular economy (CE) appears to be a crucial tool enabling the sustainable use of natural resources, which is also essential for achieving the Sustainable Development Agenda by 2030. Compared to the traditional linear economy policy based on the “take-make-use-dispose” principle, the CE approach guided by the “designed to be remade” principle offers immense opportunities. Not only does it drastically reduce the need for primary resources, but it also revolutionizes the management of both resources and waste. The CE is significant for metal processing companies due to increased control over resources and waste reduction. Furthermore, it enables the efficient utilization of natural resources and minimizes the negative environmental impact, translating into the sustainable development of metallurgical activities. Additionally, recycling processes in metal processing can also have financial benefits by reducing the raw material procurement costs and lowering the waste disposal fees. The CE business model of the innovation and improvement of metal processing involves optimizing resource usage through continuous material processing and reuse. Companies develop advanced recycling technologies, implement efficient resource management strategies, and adopt service-oriented business models like leasing or part exchanging. These initiatives aim to increase value addition and minimize waste. Additionally, the ongoing investment in research and development facilitates the introduction of innovative processes and materials, leading to operational enhancement and environmental sustainability. The main aim of this study was to develop a CE business model for a metal processing company. This model allowed for identifying the key elements influencing the operations of companies in this industry in terms of the CE. Research was conducted through triangulation using various methods, such as focus group interviews, surveys, and individual in-depth interviews. This study was supplemented with an investment decision-making algorithm according to the CE and the CE business model canvas for metalworking enterprises, with a focus on those producing metal products subsequently covered with galvanic coating. The presented results also propose application in other SMEs within this industry sector.

Suggested Citation

  • Manuela Ingaldi & Robert Ulewicz, 2024. "The Business Model of a Circular Economy in the Innovation and Improvement of Metal Processing," Sustainability, MDPI, vol. 16(13), pages 1-27, June.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:13:p:5513-:d:1424499
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/16/13/5513/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/16/13/5513/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. 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.
    2. Thobeka Pearl Makhathini & Joseph Kapuku Bwapwa & Sphesihle Mtsweni, 2023. "Various Options for Mining and Metallurgical Waste in the Circular Economy: A Review," Sustainability, MDPI, vol. 15(3), pages 1-21, January.
    3. Sabina Scarpellini & Luz María Marín-Vinuesa & Alfonso Aranda-Usón & Pilar Portillo-Tarragona, 2020. "Dynamic capabilities and environmental accounting for the circular economy in businesses," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 11(7), pages 1129-1158, January.
    4. Grzegorz Ostasz & Dominika Siwiec & Andrzej Pacana, 2022. "Universal Model to Predict Expected Direction of Products Quality Improvement," Energies, MDPI, vol. 15(5), pages 1-18, February.
    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. Ahmad, Farhan & Bask, Anu & Laari, Sini & Robinson, Craig V., 2023. "Business management perspectives on the circular economy: Present state and future directions," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    2. Castro-Lopez, Adrian & Iglesias, Victor & Santos-Vijande, María Leticia, 2023. "Organizational capabilities and institutional pressures in the adoption of circular economy," Journal of Business Research, Elsevier, vol. 161(C).
    3. Agustí Segarra‐Blasco & Mercedes Teruel & Josep Tomàs‐Porres, 2024. "Circular economy and public policies: A dynamic analysis for European SMEs," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3532-3549, May.
    4. Katelin Opferkuch & Anna M. Walker & Erik Roos Lindgreen & Sandra Caeiro & Roberta Salomone & Tomás B. Ramos, 2023. "Towards a framework for corporate disclosure of circular economy: Company perspectives and recommendations," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 30(5), pages 2457-2474, September.
    5. Roberta De Angelis & Robert Morgan & Luigi M. De Luca, 2023. "Open strategy and dynamic capabilities: A framework for circular economy business models research," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4861-4873, November.
    6. Sarfraz Nazir & Federica Doni, 2024. "Nexus of circular economy R0 to R9 principles in integrated reporting: Insights from a multiple case study comparison," Business Strategy and the Environment, Wiley Blackwell, vol. 33(5), pages 4058-4085, July.
    7. Dina Lucia Todaro & Riccardo Torelli, 2024. "From greenwashing to ESG‐washing: A focus on the circular economy field," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 31(5), pages 4034-4046, September.
    8. Benedetta Esposito & Nicola Raimo & Ornella Malandrino & Filippo Vitolla, 2023. "Circular economy disclosure and integrated reporting: The role of corporate governance mechanisms," Business Strategy and the Environment, Wiley Blackwell, vol. 32(8), pages 5403-5419, December.
    9. Cheffi, Walid & Kaleem Zahir-ul-Hassan, Muhammad & Omer Farooq, Muhammad & Baqrain, Abdelrahman & Mohamed Habib Mansour, Mourad, 2023. "Ethical leadership, management control systems and circular economy in SMEs in an emerging economy, the UAE," Journal of Business Research, Elsevier, vol. 156(C).
    10. 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.
    11. Tina Wiegand & Martin Wynn, 2023. "Sustainability, the Circular Economy and Digitalisation in the German Textile and Clothing Industry," Sustainability, MDPI, vol. 15(11), pages 1-30, June.
    12. 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.
    13. Abdulmajeed Almadhi & Abdelhakim Abdelhadi & Rakan Alyamani, 2023. "Moving from Linear to Circular Economy in Saudi Arabia: Life-Cycle Assessment on Plastic Waste Management," Sustainability, MDPI, vol. 15(13), pages 1-22, July.
    14. Hu, Xueyue & Wang, Chunying & Elshkaki, Ayman, 2024. "Material-energy Nexus: A systematic literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 192(C).
    15. Sergio Cappucci & Serena Nappi & Andrea Cappelli, 2022. "Green Public Areas and Urban Open Spaces Management: New GreenCAL Tool Algorithms and Circular Economy Implications," Land, MDPI, vol. 11(6), pages 1-25, June.
    16. Monia Niero & Charlotte L. Jensen & Chiara Farné Fratini & Jens Dorland & Michael S. Jørgensen & Susse Georg, 2021. "Is life cycle assessment enough to address unintended side effects from Circular Economy initiatives?," Journal of Industrial Ecology, Yale University, vol. 25(5), pages 1111-1120, October.
    17. Jaroslaw Golebiewski & Josu Takala & Oskar Juszczyk & Nina Drejerska, 2019. "Local contribution to circular economy. A case study of a Polish rural municipality," Economia agro-alimentare, FrancoAngeli Editore, vol. 21(3), pages 771-791.
    18. Franco Fassio & Chiara Chirilli, 2023. "The Circular Economy and the Food System: A Review of Principal Measuring Tools," Sustainability, MDPI, vol. 15(13), pages 1-22, June.
    19. S. Bhattacharya & R. Ajwani-Ramchandani & Shishir Kumar Jha & C.J. Chiappetta Jabbour & V.G. Venkatesh, 2023. "Prologue for the Virtual Special Issue on Social Circular Consumption- Exploring the Role of the Bottom of Pyramid," Post-Print hal-04458204, HAL.
    20. Eugenia Rossi di Schio & Vincenzo Ballerini & Jan Kašpar & Manuela Neri & Mariagrazia Pilotelli & Edoardo Alessio Piana & Paolo Valdiserri, 2024. "Applicability of Face Masks as Recyclable Raw Materials for Self-Made Insulation Panels," Energies, MDPI, vol. 17(7), pages 1-15, 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:jsusta:v:16:y:2024:i:13:p:5513-:d:1424499. 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.