Circular economy supply network transition phases management dynamics

Abstract

AbstractThis paper discusses transitions towards circular economy, developing a circular economy supply network transition phases management dynamics framework. We studied seven circular supply networks in Brazil through process analysis and system dynamics modeling. Primary data were collected through 35 manager's interviews and companies' plant and their suppliers' visits. We suggest that transition phases management are pre‐development, learning, expansion, leadership, stabilization and self‐renew with cooperative and competitive challenges, characterized by specific circular factors over time. The simulation and transition phases models provide strategic tools to make decision on which circular factor, project team should focus applying multi‐tier supply chain management and hybrid leadership to stimulate internal and integrate external stakeholders to adopt circularity, unveiling challenges and average time to achieve each phase. We also enrich circular economy supply network management theoretical background defining it in three dimensions: behavioral as supply ecosystem, structural as supply network and contextual as complex adaptive system.