A Business Management Model in the Circular Economy: Technological Solutions for Plastic Recycling

Abstract

Objectives: this article develops a model for managing business processes in a circular economy using technologies for plastic recycling. Theoretical Framework: The theoretical idea and basis of the article consists in the development of project management methodology, process approach in the closed-loop economy, development of methods and economic tools aimed at effective resource management taking into account waste reduction and increased reuse of plastic fractions in Municipal Solid Waste (MSW). The application of digital technologies and solutions in the context of business process management in the field of plastics recycling will be substantiated, which will allow to identify new opportunities and reserves for optimising business processes in this field, increasing the efficiency of resource use, improving the environment and reducing costs. Method: the work uses a project approach, a process approach, digital modeling methods, and the “polluter pays” method. To implement the process approach, it is proposed to use the concept of Business Process Management (BPM). Competent business process management allows the company to react quickly to changing market conditions and customer orientation. Digital modelling in this paper means the representation of actions in the form of business processes in the organisation of solid waste management, the 'polluter pays' method means the economic assessment and accounting of environmental damage in waste management in the costs of business processes. Results and Discussion: The results of the study can be used to introduce the process approach to plastics recycling in individual regions and countries for the development of a green economy. According to the estimates of the authors, the optimisation and cost reduction of business processes, taking into account the environmental factor and the increase of the revenue part of the project from the reuse and inclusion in the economic turnover of plastic waste recycling products on the scale of the considered city (population of 1800 thousand people, area of 2856 ha, 18.14 tonnes of plastic waste accumulated per day) will reduce the costs of business process management by more than 200 thousand euros. Research Implications: the results of the study can be used to justify projects for the processing and recycling of solid municipal waste, including plastic waste, to introduce environmentally friendly production, to reduce the negative impact on the environment, to develop a process approach to the organisation of all activities for the collection of plastic waste in the city, district. In addition, the application of the proposed approach allows to obtain economic benefits for companies through the sale of secondary resources for the processing of plastic waste, as well as to reduce the negative impact on the environment. Originality/ Value: The originality of the research and its value lies in a new scientific formulation of the problem of reducing environmental pollution from plastic waste through the use of business processes in the field of plastic recycling and digital solutions, as well as the possibility of practical application of the results obtained in the field of green economy.