Supply Chain Configurations in the Circular Economy: A Systematic Literature Review

Donato Masi,Janet Godsell,Steven Day

doi:10.3390/su9091602

Abstract

As the circular economy (CE) gains traction in literature and practice, several academic communities are opening up spaces that move away from the CE as a pure engineering concept. This systematic literature review (n = 77) analyses and discusses the fragmented body of knowledge on the meso-level of supply chains (SCs): (a) to find common ground that underpins the current implementation of the CE on this level; and (b) to identify drivers, inhibitors, and enablers from which CE SC configurations emerge. The review finds that there remain differences in CE definitions that result from claimed antecedents and scopes, resulting in distinct research streams. On the meso-level, eco-industrial parks, environmental SCs, and closed-loop SCs each face significant challenges. The latter potentially offers the largest environmental benefits but engenders radical changes for business models and exposes SCs to more risk. We firstly argue for moving away from using a prescriptive set of practices as definitions for the CE towards a set of overarching goals to allow for the inclusion of future practices and techniques. Secondly, we highlight that research going beyond the meso-level to consider the wider social and institutional environment is needed to solve current challenges.

Highlights

The linear model of resource consumption, based on the “take-make-consume-dispose” pattern, does not appear to be sustainable as it depletes the natural capital and pollutes the environment [1,2]
Question Formulation Given the aforementioned fragmentation of circular economy (CE) research in regardd to supply chains (SCs), this study attempts to structure ththeecucrurrernetnfit nfdinindginsgussinugsinang SaLnR SmLeRthmodeothloogdyo. lToogyth. isTeondth, itsheernedv,ietwhequrevstiieownsqthuersetifoonres ask: (a) what overarching goals and assumptions define the CE; (b) what practices are ask: (a) what overarching goals and assumptions define the CE; (b) what practices are described as being part of the meso-level of SCs in the CE; and (c) what conditions are necessary for such SCs to emerge in the CE
This is because we argue that there is a danger that the means of the CE are being confused with the ends, as is common in CE definitions that equate the concept to an individual antecedent

Summary

Introduction

The linear model of resource consumption, based on the “take-make-consume-dispose” pattern, does not appear to be sustainable as it depletes the natural capital and pollutes the environment [1,2]. This development is reshaping competitive priorities for firms and supply chains (SCs). Incremental improvements through more efficient processes have been questioned because of the “rebound effect”, which describes how the environmental benefits of energy and materials’ efficiency gains might be offset by increased production and utilization of a good [5], and calls are growing for more transformative changes in how firms do business. There are changes on the demand side: consumers are increasingly demanding environmental responsibility of firms and SCs [6]. Consumer preferences are shifting, and business models based on ownership are competing with new ones based on the concept of ownership-less consumption [7,8]

Methods

Results

Discussion

Conclusion