Reducing e-waste in China's mobile electronics industry: the application of the innovative circular business models

Abstract

PurposeThe objectives of this research are to (1) fill the evidence gap of circular business activities and (2) enrich the knowledge base about the drivers of and barriers to circular economy business model (CEBM) that supports e-waste reduction in China’s mobile electronics industry. To answer the overarching research question of whether there are CEBMs emerging to address e-waste in China’ mobile electronics industry, we in this paper divided it into three sub-questions: (1) What CEBMs can support e-waste reduction? (2) Is there evidence for their implementation in China? and (3) What are the drivers of and barriers to these business model innovations?Design/methodology/approachWe started with setting the scene on the importance of better e-waste management and the scale of e-waste problem in China. Building on the oft-quoted ReSOLVE framework, developed by EMF (2015) and consolidated in Lewandowski (2016), we have refined from it 11 CEBMs to suit the context of e-waste reduction. These 11 models include regenerate, life cycle extension, take-back services, product sharing systems, optimise resource value, produce on demand, circular supplies, resource recovery, industrial symbiosis, product-as-a-service and transformative innovation. We have mapped these refined models against the evidence of circular business practices identified in the corporate sustainability reports of eight out of top 12 mobile electronics manufacturers in China.FindingsOur research findings show that six out of these 11 CEBMs are de facto practised in many of these companies. They include life cycle extension, collection services, optimise resource value, circular supplies, resource recovery and industrial symbiosis, although circular economy is still early-stage endeavours in the industry. As confirmed in our expert and company interviews, CEBM stems largely from profit and policy drivers. The key to building successful CEBMs to eliminate e-waste is, indeed, multi-stakeholder collaboration across the mobile electronics industry, which involves effective collection, reuse and recycling systems.Originality/valueThe lessons learnt can promote peer learning among EEE manufacturers and inform policymakers of effective strategies to create an enabling environment in which circular economy models can thrive.