From Barriers to Enablers: The Role of Organizational Learning in Transitioning SMEs into the Circular Economy

Sara Scipioni,Meir Russ,Federico Niccolini

doi:10.3390/su13031021

Sara Scipioni, Meir Russ + Show 1 more

Open Access

https://doi.org/10.3390/su13031021

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Abstract

To contribute to small and medium enterprises’ (SMEs) sustainable transition into the circular economy, the study proposes the activation of organizational learning (OL) processes—denoted here as multi-level knowledge creation, transfer, and retention processes—as a key phase in introducing circular business models (CBMs) at SME and supply chain (SC) level. The research employs a mixed-method approach, using the focus group methodology to identify contextual elements impacting on CBM-related OL processes, and a survey-based evaluation to single out the most frequently used OL processes inside Italian construction SMEs. As a main result, a CBM-oriented OL multi-level model offers a fine-grained understanding of contextual elements acting mutually as barriers and drivers for OL processes, as possible OL dynamics among them. The multi-level culture construct—composed of external stakeholders’, SC stakeholders’, and organizational culture—identify the key element to activate CBM-oriented OL processes. Main implications are related to the identification of cultural, structural, regulatory, and process contextual elements across the external, SC, and organizational levels, and their interrelation with applicable intraorganizational and interorganizational learning processes. The proposed model would contribute to an improved implementation of transitioning into the circular economy utilizing sustainable business models in the construction SMEs.

Highlights

Organizational sustainability is a multifaceted concept that “implies a simultaneous focus on economic, social, and environmental performance” [1] (p. 21) of organizations [2]to create value consistent with the long-term preservation and enhancement of financial, environmental, social, and human capital [3] (p. 39).Sustainable organizations should balance this triple bottom line [4,5] across all the relevant activities at both intraorganizational and interorganizational level
From the qualitative analysis of the focus group discussions, out of the main contextual elements related to circular business models (CBMs)-oriented organizational learning (OL) processes, three overarching dimensions were identified: External environment, supply chain, and the SME contextual elements
This section reports the results obtained from the analysis of the 127 usable surveys in relation to the utilization of knowledge creation (KC), KT, and KR processes inside Italian construction SMEs

Summary

Introduction

Organizational sustainability is a multifaceted concept that “implies a simultaneous focus on economic, social, and environmental performance” [1] (p. 21) of organizations [2]to create value consistent with the long-term preservation and enhancement of financial, environmental, social, and human capital [3] (p. 39).Sustainable organizations should balance this triple bottom line [4,5] across all the relevant activities at both intraorganizational and interorganizational level. Organizational sustainability is a multifaceted concept that “implies a simultaneous focus on economic, social, and environmental performance” [1] 41)—as well as to the supply chain (SC) management—for example, with the analysis of environmentally sustainable practices such as green logistics [6] and green product design [7]—as to relationship management towards external stakeholders, oriented to meeting their expectations [8]. Organizations might become sustainable by implementing circular business models (CBMs), a limited understanding of the related definitions, practical applications, and evaluation tools is quite evident from the literature [14,15,16,17,18], prospecting a difficult application of CBMs at the intraorganizational and interorganizational level.

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