Abstract
Research has shown that inter-firm networks and relationships play a key role in innovation adoption; however, these concepts have not specifically been applied to study their role in the adoption of circular economy eco-innovations. This paper considers whether the embedded relationships within inter-firm networks also influence circular economy eco-innovation adoption. Using a historical case study of the REALCAR closed-loop recycling initiative, by Jaguar Land Rover, from 2013 to 2017, the paper conducted qualitative interviews to reconstruct the structure and nature of the relationships between Jaguar Land Rover and its suppliers. This was complemented with a network regression analysis to determine the influence of these relationships on the adoption and implementation decisions of the closed-loop recycling process by the suppliers of Jaguar Land Rover. The results show that Jaguar Land Rover’s relationship as a key customer, facilitation of knowledge sharing among peer suppliers, and resistance from suppliers impacted by changing supply chain relationships played a role in the adoption decisions and adoption timeframe of the REALCAR closed-loop recycling innovation. This has implications for companies and supply chains to consider leveraging the inter-firm relationships embedded in their supply chain networks to accelerate the adoption of circular economy eco-innovations.
Highlights
Reducing the environmental impact and waste of our current global supply chains requires a transformation of how resources are used to produce goods and services
Scrap dealers seemed to resist and tried to delay the adoption of the closed-loop approach, but on the other hand, they faced pressure from Jaguar Land Rover and the stamping suppliers to accept their role in the REALCAR model and keep their business
This was further explored through the Multiple Regression Quadratic Assignment Procedure (MR-QAP) network regression analysis to test how significant a role the relationships with scrap dealers played in influencing the adoption timeframes of REALCAR
Summary
Reducing the environmental impact and waste of our current global supply chains requires a transformation of how resources are used to produce goods and services. It is necessary to shift supply chains towards a model where resources are recovered and circulated back into the production process. A circular production approach creates closed-loops to ensure that wasted resources at each step of the supply chain are recovered and recycled [2]. An ideal closed-loop recycling process returns any waste material back into the production process, as close as possible to the source of the waste. It significantly reduces the environmental impact of production by minimising the need for new virgin resources and the treatment of generated waste, while improving profitability [3]
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