The circular economy (CE) proposes an economic framework based on circular flows of products and materials. Transition towards a CE is underway, therefore, understanding the nature and state of this transition is important for creating effective policies and business strategies. Some studies have focused on specific contexts and pockets of good practice. This exploratory, survey-based study of 77 companies investigates the shift towards the CE using a taxonomy of practices and barriers. Results show that firms favour practices related to resource and energy utilisation efficiency, while practices related to investment recovery, green purchasing and customer cooperation are less prevalent. Eco-design and internal environmental management practices have a medium level of implementation. The significant upfront investment cost, lack of awareness or sense of urgency were identified as implementation barriers. Results suggest the CE is driven by economic not environmental considerations, and the deployment of practices remains within a firm rather than across the supply chain.
As the circular economy (CE) gains traction in literature and practice, several academic communities are opening up spaces that move away from the CE as a pure engineering concept. This systematic literature review (n = 77) analyses and discusses the fragmented body of knowledge on the meso-level of supply chains (SCs): (a) to find common ground that underpins the current implementation of the CE on this level; and (b) to identify drivers, inhibitors, and enablers from which CE SC configurations emerge. The review finds that there remain differences in CE definitions that result from claimed antecedents and scopes, resulting in distinct research streams. On the meso-level, eco-industrial parks, environmental SCs, and closed-loop SCs each face significant challenges. The latter potentially offers the largest environmental benefits but engenders radical changes for business models and exposes SCs to more risk. We firstly argue for moving away from using a prescriptive set of practices as definitions for the CE towards a set of overarching goals to allow for the inclusion of future practices and techniques. Secondly, we highlight that research going beyond the meso-level to consider the wider social and institutional environment is needed to solve current challenges.
1 October 2019 in International Journal of Production Economics