Drivers and Enabler of Circular Economy in the Indian Pharmaceuticals Industry

Abstract

India has evolved into a substantive base in the narrative of global pharmaceutical as a provider. Developing countries such as India however have been struggling with proper management and disposal of pharmaceutical waste. This has been causing rampant environmental pollution that was adversely impacting the ecosystem and human health. In this study, the circular economy model was adopted to find the drivers and enablers of the three Rs of waste management - Remanufacture, Reuse, Recycle in the context of Indian Pharmaceutical Supply Chains (PSCs). The study was anchored in the theoretical conversation of Stimulus Organism Response (SOR) theory. Data was collected using the survey method from 166 chief supply chain executives from various pharmaceutical companies based in India. The data was analysed with Smart PLS software. The results revealed that most of the green drivers such as regulatory pressure, customer pressure and public pressure have failed to drive the waste management practices in the PSC. Only, pressure from suppliers was driving energy and material input management in the PSC. Also, the other stakeholders (such as media, investors and NGOs) were the sole drivers for the safe disposal of pharmaceutical waste. Further, pressure from competitors and other stakeholders were driving the control of waste and emission leakages from the PSC. The results stated that Green Information Technology System (GITS) played a critical role in enabling waste management practices in pharmaceutical production. Furthermore, the study revealed that Internal Environment Management (IEM) was not just essential for the safe disposal in the PSC, but it also played a decisive role in controlling the waste and emission leakage. The study provided empirical evidence to support the SOR theory and helped to extend the scope of circular economy research to PSC. Additionally, it would benefit managers by fostering better decision-making to devise effective strategies for waste management.