Improving sustainable supply chains performance through operational excellence: circular economy approach

Abstract

This work is framed by the search for sustainable supply chain success through new approaches of operational excellence. By applying certain characteristics of Upper Echelons Theory in the context of the circular economy, this study analyzes critical success factors for the adoption of the circular economy using focal companies selected from both emerging (Brazil) and mature (Scotland) economies. Thus, this study relates to the maturity level of circular economy adoption, how well companies manage critical success factors, and the influence of selected characteristics of firms’ upper echelons in promoting the circular economy. After conducting two exploratory case studies in Brazil and Scotland, as well as exploring the suitability of four research propositions, this work suggests that: (i) among the firms studied, companies that are more proactive towards the circular economy also demonstrate better management of critical success factors; (ii) based on these cases, companies that are less proactive in terms of the circular economy tend to face greater challenges and tensions due to unmanaged critical success factors; (iii) among the companies studied, those that are most proactive in terms of the circular economy tend to have top management who are more supportive of sustainability; (iv) certain top management characteristics in the companies studied, such as formal sustainability education and understanding of national sustainability strategy, are revealed to be relevant to the adoption of circular economy initiatives; and finally, (v) while our study shows that the theory behind the circular economy and critical success factors for promoting circular production systems have been developing separately, the integration of these important topical issues currently remains scarce.