Linear Value Chains Research Articles

Contributions of heterogeneous catalysis enabling resource efficiency and circular economy

Our industry today is predominantly based on linear value chains. Raw materials are extracted from primary sources, processed into products, used, and disposed of at the end of their life cycle. This linear economy causes a wide range of negative environmental impacts owing to the resulting greenhouse gas emissions and pollution of marine and terrestrial ecosystems. Closed carbon cycles and climate-neutral energy production are essential for the production not only of fuels but also of all chemicals, including plastics and fertilizers, to counteract climate change and further damage to the environment. In this regard, this article discusses the importance of heterogeneous catalysts for selected technologies associated with this transformation of the resource base and energy supply. It discusses the technological framework conditions of a net CO 2 -neutral industry, with a focus on electrocatalytic water-splitting for hydrogen production, as well as the catalytic challenges of production of chemicals for the whole value chain using biomass, CO 2 and plastic waste as raw materials. This article is part of the discussion meeting issue ‘Green carbon for the chemical industry of the future’.

Toward a policy landscape to support the product‐as‐a‐service design process for a circular economy

AbstractDespite the widely recognized potential of product‐as‐a‐service (PaaS) business models to contribute to the circular economy, many industrial case studies have reported that several systemic factors tend to hinder product manufacturers from effectively designing such solutions. More specifically, factors such as linear value chains, organizational structures, and market and financial conditions tend to restrict the freedom of product manufacturers to design circular PaaS solutions effectively. In this article, we take a novel approach to advance the body of knowledge concerning the interactions between policies and circular PaaS designing. We first explore the potential of the existing policy landscape to support designing for a circular economy in the manufacturing industry. The results suggest that the existing policy landscape is primarily focused on regulating product design outcomes and is thus deemed unsuitable for supporting circular PaaS designing. Subsequently, we investigate the literature to uncover how internal and external systemic factors may hinder the implementation of the key facets of circular PaaS designing in the manufacturing industry. Based on these findings, we propose a prospective policy framework that includes a mix of complementary policy interventions that systemically target the identified internal and external factors to support the implementation of the key facets of circular PaaS designing.

Circular Economy Matrix Guiding Manufacturing Industry Companies towards Circularity—A Multiple Case Study Perspective

AbstractManufacturing companies struggle with overwhelming expectations, disruptions and trends sweeping over their business environment. The evident climate change, together with rising sustainable development goals, is forcing companies to discover their environmental impact, in addition to the more familiar economic one. The transformation from a linear economy to a circular economy (CE) reduces waste and improves resource efficiency through the deployed R-cycles, such as recycle, reuse and repair. This transformation is feasible for multinational enterprises because they can allocate sufficient resources for their strategic development goals. For small and medium-sized enterprises (SME), any additional investment must be carefully assessed and planned. Thus, SMEs need support and tools to select their next development investments. Generally, maturity models help companies find their status (compared to others) and identify the most important development areas and actions. This paper presents the CE maturity matrix, which comprises five maturity levels mapped with seven linear manufacturing value chain phases. The matrix was piloted with nine manufacturing industry companies, four of which were from Finland, one from Italy, one from Germany and three from Ireland. The CE matrix interview results showed that none of the interviewed manufacturing industry companies remained at the linearity level. The most common levels varied between systemic material management and CE thinking. In the interviews, over 40 CE actions were identified as the argument for a company reaching a CE maturity level. The transition towards sustainable manufacturing has already started but will require efforts to accelerate and to engage companies to proceed.

Knowledge, Attitudes, and Practices on Circular Economy among Senior Managers of Ethiopian Textiles and Agro-Food Processing Companies

AbstractCompanies are increasingly seeking to adopt a Circular Economy (CE) approach when aiming for greater corporate sustainability. In Ethiopia, a country rapidly industrializing, a CE approach in line with Ethiopia’s Green Manufacturing Strategy offers businesses a more sustainable and efficient economic approach than linear value chains. This study evaluates approaches towards implementing CE principles into novel business practices, focusing on the crucial role of senior business managers. Drawing on a sample of 145 senior managers of Ethiopian textiles and agro-food processing companies, we analysed their knowledge, attitudes, and practices vis-à-vis CE. The findings show that managers have high levels of knowledge about CE and hold positive attitudes towards it, although their companies’ practices did not reflect this. Logistic regression analysis showed that environmental management training, business circularity strategies, and the type of managerial positions are the major determinants of managers’ willingness to adopt circular practices. A critical finding was that participation in environmental management training and their managerial status negatively affect the willingness to adopt circular practices. Based on these findings, the study offers key recommendations focused on the potential to build CE models at the corporate level in developing countries, such as Ethiopia, through policy change and improved education and training.

Digital Transformation of Incumbent Pipeline Firms through Platformization

ABSTRACT Advancements in digital technology necessitate a shift from traditional linear buyer-supplier value chains to a network-centric approach facilitated by digital platforms. Despite digital platforms being a dominant model for transformation, limited research has explored the enablers for incumbent pipeline firms to embrace platformization. To address this gap, this study reviews existing literature on digital transformation, identifying nine enablers for digital platformization: changing client behavior, information technology (IT) capabilities development, structural efficiencies, disruptive competitive forces, scope advantages, economic triggers, disruptive third-party technology, creation of autonomous corporate structures, and regulatory compliance. Case studies of platformization in diverse industries are analyzed using the modified total interpretive structural modeling (m-TISM) approach, resulting in a hierarchical model with five levels. This model delineates interrelationships among trigger events, external enablers, internal organizational enablers, process enablers, and outcome drivers. Furthermore, the study highlights that the creation and extraction of value from digital platforms are operationalized through e-business strategies, contributing insights to e-business literature by discussing the implications of these enablers on dimensions such as commerce, collaboration, communication, connection, and computing.

Making virtual celebrity: Platformization and intermediation in digital cultural production

Focusing on intermediation in cultural production in a digital ecology consisting of multiple platforms mediating simultaneously converging and diverging industries, this study critically engages with the thesis that platforms act primarily as a disintermediation vector in a linear value chain within a single industry. With two empirical cases of intermediation in the emerging virtual celebrity sector – one organizing the recursive loop of prosumption, the other articulating authenticity against technological standardization and overproduction, the study shifts the focus away from questions of labor and agency of individual creators and unpacks the conditions of intermediation in the context of new industrial models of value creation, commodification, and division of labor. The empirical cases demonstrate that the implications of platforms for digital cultural production are paradoxical – while their business models lead to a centralized process of value capture, their flexible organizational forms may afford new distributed patterns of value creation.

Policy Making to Encourage Platform Thinking in Manufacturing: A System Dynamics-based Multi-Objective Optimization Approach

Platform thinking involves creating an ecosystem that enables different participants to interact and co-create value. This mindset shift moves away from the traditional linear value chain model toward a more collaborative, networked approach. In the manufacturing sector, platform thinking has given rise to new business models like manufacturing as a service (MaaS) and cloud manufacturing (CMfg). In this paper, building upon existing literature, a system dynamics (SD) model is developed to analyze the acceptance of platform thinking as an innovative solution in manufacturing. In contrast to previous studies, the model considers the dynamics of customer behavior in addition to the roles of the platform provider (government) and service providers (manufacturers). The model incorporates four decision variables: commission rates, user membership fees, and subsidies for both cloud platform users and service providers, which can be adjusted to inform policymakers. Studying the effect of individual decision variables over a 30-year time frame using the SD model reveals that increasing commission rates and user membership fees negatively affect the platform size (number of manufacturers joining and staying on the platform), yet can result in increased long-term platform revenue. On the other hand, providing subsidies for cloud platform users and service providers has a positive impact on the platform size but leads to increased costs for the platform provider. A non-dominated sorting genetic algorithm (NSGA-II) is employed to optimize the system dynamics model and identify optimal policy settings that balance the interests of all stakeholders. This approach enables policymakers to make informed decisions that support the growth of CMfg and MaaS, fostering innovation and competitiveness in the manufacturing sector.

Inside-out strategic coupling for smallholder market integration – Mango production in Malawi as a test case

Starting from the observation that value chain research has informed much of agricultural development interventions in recent decades, this paper identifies five key challenges to current agricultural development policies in low- and middle-income countries (LMICs): access to finance, infrastructure, land tenure, local linkages and knowledge transfer. Based on this review, it is argued that recent theoretical advances in the global production network (GPN) approach can help to achieve a more holistic view of agricultural development policies than the more linear value chain research. In particular, three key concepts from the GPN approach are highlighted: mobilisation of regional assets, strategic coupling and territorial embeddedness. These key concepts are used to propose a framework called ‘insight-out strategic coupling for smallholder integration’, which builds on the concept of strategic coupling in GPN research and applies it as a development tool to agricultural production. Using an in-depth case study approach, the usefulness of this framework is tested by examining the experience of Malawi Mangoes, a company established to promote smallholder exports. Malawi Mangoes was initially funded by private equity, but despite a number of challenges along the way, was soon able to attract development funding and integrate smallholders from surrounding villages throughout-grower schemes. Analysis of the case shows both the usefulness of the framework and the lost potential in implementing agricultural development policy. The authors conclude that the framework is useful for linking current debates on agricultural development interventions, but that the findings of critical GPN research need to be taken into account when developing agricultural development interventions in order to respect the ‘do no harm’ principle.

Advanced Eco-Friendly Wood-Based Composites II

The ongoing twin transition of the wood-based panel industry towards a green, digital, and more resilient bioeconomy is essential for a successful transformation, with the aim of decarbonising the sector and implementing a circular development model, transforming linear industrial value chains to minimize pollution and waste generation, and providing more sustainable growth and jobs [...]

Eco-Gamification Platform to Promote Consumers’ Engagement in the Textile and Clothing Circular Value Chain

The textile and clothing (T&C) value chain is one of the most polluting in the world and one that produces the most waste. It is, therefore, important to encourage the circular economy (CE) model in this sector to reduce pollution, mitigate the effects of waste production, and, consequently, increase environmental sustainability. Leveraging end-consumer engagement in a CE mindset in the T&C sector is crucial, as they are the last player in a typical linear value chain. Therefore, a platform that supports and promotes sustainable tasks to manage one’s fashion products, through the use of gamification techniques, can be of utmost importance. In this article, we identify impactful carbon footprint consumer actions and solutions for the T&C consumer phase. After that, we survey gamification frameworks for analyzing techniques, at the system design level, which enable the engagement of the final consumer in the CE process. Then, we select and use one of such frameworks, Gameful Design Heuristics (GDH), for defining the gamification structure needed to implement on a business-to-consumer-to-consumer (B2C2C) context of a circular economy process, linking it to the aforementioned actions and solutions. As result, we present a B2C2C circular business process model for the T&C value chain and propose the design model of a gamified platform for the final consumers, which allows them to register the consumer-to-business (C2B) and consumer-to-consumer (C2C) activities, from the circular value chain’s business process, and benefit from a game-like experience. All the model features have been mapped to the GDH framework heuristics, validating that it is possible to support a set of defined heuristics of applied gamification for promoting CE in the T&C value chain.

Using digital platforms for value chain sustainability – Cases from the Digitala Stambanan project

Transforming firms towards sustainability is an imperative posed by urgent environmental concerns and governmental regulations, requiring the redesign of traditionally linear and non-transparent value chains. Digital platforms can support the twin transition to digitalization and sustainability, converting the abstract into the tangible (i.e., data flows, information, and knowledge), and providing an industrial testbed to collaborate and challenge the willingness to share data, co-create and deliver value through sustainability-oriented digital services.This study presents a research collaboration with industrial actors in the context of Swedish manufacturing, aiming to showcase the potential of platforms in Swedish value chains. Awareness of the digital maturity as-is status from the individual actors within a value chain, and purposeful development strategies can lead to improved digital performance, an increased sense of collaboration and sustainable behaviour.Through a case study approach, this article illustrates the potential of digital platforms by presenting three manufacturing value chains where prioritised industrial challenges are addressed through the capabilities of such platforms: (1) a CO2 visualisation platform that allows transparency, communication and data-sharing between the stakeholders of the value chain and aims to connect different industrial partners and aims to reduce sustainability impact through collaborative efforts; (2) a collaborative root-cause analysis digital platform that allows virtual commissioning of sustainability experts, and technical support; (3) the re-development of a productivity-centred digital service into a sustainability-informing solution that provides relevant production data for SMEs, who are customers of the machine tool sector.The preliminary findings include: (1) digital maturity of individual firms in a value chain impacts the feasibility of platform development, (2) increased digital maturity allows companies to shift their focus towards sustainability priorities; most companies are often too concerned with productivity, visibility, and flexibility challenges, leaving the sustainability imperative as a nice-to-have, (3) the lack of focus on sustainability can be caused by unclear understanding of how consumer-perceived value can be captured.

From Linear to Circular Value Chains: A Role for Tort Liability in Recycling Practices?

AbstractThis article examines the extent to which tort law can be used to incentivise the creation of the circular value chain and the design of products that live up to the requirements of the circular economy. In doing so, this article focuses in particular on the concepts of product liability and value chain liability. It shows that whereas the product liability framework has clearly been thought out to fit the linear value chain, central product liability concepts are also sufficiently flexible to be able to take in circularity considerations. The same goes for the concept of value chain liability. This article also shows how both types of liability become intertwined in the circular value chain.

The Social Impacts of Circular Strategies in the Apparel Value Chain; a Comparative Study Between Three Countries

The apparel value chain is essential for the livelihood of millions of workers around the globe. However, human rights violations and the lack of a sustained income by apparel workers demonstrate the poor working conditions present in this sector. Circular economy (CE) has been used by incumbent businesses and startups as a framework to achieve sustainability, thus contributing to its economic, environmental and social dimensions. However, there is a lack of knowledge on its social impact. Most of the literature assesses CE’s social impacts by focusing only on the number of jobs created. However, the majority of studies agree on the need to analyse further the quality and inclusivity aspects. This paper explores the social impact of the different circular strategies implemented in three countries. It assesses social impacts related to the quality of jobs, workers’ sustainable livelihood and gender equality and inclusion. Results corroborate that CE social ambition is low, and that current circular strategies follow the same feminisation and precariousness of working conditions found in the linear apparel value chain. Thus, policymakers and businesses alike need to strengthen their CE social ambition; coordinate policy and strategies with different countries stakeholders of the apparel value chain to minimise trade-offs; and safeguard a just circular transition. This research contributes to the body of literature on CE by introducing a social impact assessment framework for circularity called SIAF-CE⚥. Additionally, it provides evidence on the current CE social impact implemented by startups and incumbents in regional and global contexts.

Tackling the Grand Challenge of Climate Change with Ecosystem Innovation

Reflected in the United Nation’s Sustainable Development Goals (SDGs), global climate change is one of the grand challenges faced by humanity. While substantially more progress is required, technological developments in renewable electricity generation and complementary digital technologies in the electricity sector are opening up a path towards reaching climate-related SDGs. Yet, how heterogenous actors innovate and coordinate to translate these interdependent technological developments into value propositions at the necessary speed and scale remains elusive. To make sense of this puzzle we introduce an ecosystem innovation perspective incorporating multiple interdependent dimensions at both the technology and strategy level, enabling us to better capture the complex structural changes within the electricity sector. We calibrate our analysis through the study of 57 different collaborative pilots between 10 large international incumbent electric utilities and startups over a four-year period, in which they collaboratively experiment with different alignments of technologies and strategic roles adopted by incumbents, startups and customers (i.e. ecosystem configurations). Using Qualitative Comparative Analysis and additional interviews we identify three ecosystem configurations that contribute highly to climate-related SDGs: (1) digital platform innovation enhancing resource efficiency, (2) physical complementor innovation enabling renewable generation scaling, and (3) new orchestrator innovation allowing actors to share, trade and leverage information and resources. In a complementary analysis we further illuminate trade-offs that incumbents face between allocating resources towards ecosystem innovation for grand challenges versus linear value chain enhancements for capturing short term economic value. This study contributes to the literature by elaborating on (1) how ecosystem innovation may help to tackle the inherent interdependencies of grand challenges (2) the role of incumbent firms and their approach to innovation for managing grand challenges, and (3) the management of platform-based ecosystems in infrastructure-intensive settings. For managers we offer insights regarding how to innovate ecosystems for tackling grand challenges.

Control Point Dynamics in Emerging Digital Business Ecosystems: The Case of the Digital Agriculture

With the emergence of digital technologies, companies move from vertically integrated value chains towards digital business ecosystems. In such ecosystems, companies leave their original bargaining position, where they are aware of who creates how much value and how much control they have in negotiating value capture. In digital business ecosystems, however, the control over value creation is dispersed among multiple actors, across different industries and encompassing different layers (e.g. physical devices, networks, services and content). As a consequence, tension between value creation and value capture increases, as value creation occurs by means of cooperation and value capture is determined by a bargaining relationship. Prevailing theories and concepts such as Porter’s five forces or the resource-based view provide an insufficient explanation of how companies manage to achieve a competitive advantage in a digital business ecosystem. This paper sheds light on the less explored concept of control points reflecting the dynamic bargaining situation in emerging digital business ecosystem. Therefore, we conduct a multiple-case study with 15 companies, industry associations and consultancies in the digital agricultural ecosystem. We identify nine different control point categories emerging on the way from the traditional linear value chain towards digital business ecosystems. Subsequently, we derive six exemplary strategies based upon various control point constellations and thus actor’s superior power in e.g. having digital or physical customer access or being able to provide the necessary infrastructure to connect various actors in the ecosystem.

Greenhouse Gas Emission Reduction Potential of European Union’s Circularity Related Targets for Plastics

Current rising concerns about environmental and climate impacts in production, consumption and end-of-life of plastics have led to efforts to switch from linear to circular economy of plastics in Europe. Greenhouse gas emissions are likely to decrease with a transition to a circular system; however, a systematic and integrated perspective on plastics and the carbon cycle is currently missing in the debate on plastics.In this study, a model to estimate greenhouse gas emissions of the current mostly linear plastics value chain of the EU in 2018 and a future scenario, 2025 model, were created. By 2025 if current policy targets are reached, the plastic packaging recycling rate should be 50%, PET-based drinking bottles should include 25% recycled content, 77% collection target for plastic bottles, 10 Mt recyclates should enter the markets, uptake of bio-based plastics is estimated by European bioplastics to increase from current 1 to 1.32% and landfilling will continue to decrease according to the current trend at 3.85%.Total greenhouse gas emissions caused by the current plastics value chain are estimated at 208 million tonnes of CO2-eq. The 2025 model estimates that total plastics value chain emissions will be 182 Mt of CO2-eq. Reduction potential is approximately 26 Mt of CO2-eq or 13%.

Transforming Linear Production Chains into Circular Value Extended Systems

Different schools of thought, theories, and concepts have been developed to diminish the social and environmental impact that the take–make–dispose linear economic model has produced. Such is the case of industrial ecology (IE) and circular economy (CE). However, the principles and guidelines in IE literature are focused more on resource efficiency without considering the social externalities. In the same sense, CE literature has not brought clear guidance about how to circularize linear businesses and is mainly focused on recycling strategies, which could be the least profitable and attractive option among the circular business models (CBM). Based on the sustainable wealth creation through disruptive innovation and enabling technologies (SWIT) framework and the business model framework, we have developed a roadmap to transform linear value chains into an industrial ecology cluster of zero-waste chains and enabling institutions called a circular value extended system (CVES), which is able to exploit non-usual business opportunities of waste and residue revaluation. This systemic approach opens the possibilities of creating a socially inclusive, environmentally resilient, and economically viable system of capital. A case study is presented to clarify the design process and application of the framework. Our contribution entails guidelines to transform linear value chains into a cluster of circular economy systems capable of producing sustainable increasing returns to benefit multiple regional stakeholders.

Potentials and Prerequisites on the Way to a Circular Economy: A Value Chain Perspective on Batteries and Buildings

It is becoming increasingly clear that linear modes of production and consumption are unsustainable. A circular economy would help to minimize both environmental and social problems. As a result, the concept is gaining momentum in the political discourse. However, current policies do not seem sufficient to transform linear value chains to circular ones. This paper compares the potentials of and prerequisites for a circular economy along two important value chains. As a best practice example, the legal framework along the battery value chain is analyzed. This analysis is used to derive recommendations for how to improve the legal framework along the building value chain. We find that the battery value chain is already addressed by targeted instruments and the instruments addressing the building value chain have to be aligned and their credibility improved through mandatory requirements. A value chain-specific approach to develop the legal framework is promising for key sectors, while both general frameworks and value chain-specific instruments are required to fully exploit the CE for every product.

Electronic Waste Reduction Through Devices and Printed Circuit Boards Designed for Circularity

The development of printed circuit boards (PCBs) has so far followed a traditional linear economy value chain, leading to high volumes of waste production and loss of value at the end-of-life. Consequentially, the electronics industry requires a transition to more sustainable practices. This review article presents an overview of the potential solutions and new opportunities that may arise from the greater use of emerging sustainable materials and resource-efficient manufacturing. A brief contextual summary about how the international management of waste PCBs (WPCBs) and legalization have evolved over the past 20 years is presented along with a review of the existing materials used in PCBs. The environmental and human health assessments of these materials relative to their usage with PCBs are also explained. This enables the identification of which ecofriendly materials and new technologies will be needed to improve the sustainability of the industry. Following this, a comprehensive analysis of existing WPCB processing is presented. Finally, a detailed review of potential solutions is provided, which has been partitioned by the use of emerging sustainable materials and resource-efficient manufacturing. It is hoped that this discussion will transform existing manufacturing facilities and inform policies, which currently focus on waste management, toward waste reduction and zero waste.

Smart City Service Strategy in Incheon International Airport Economic Zone

Purpose - This policy paper aims to build comprehensive strategies for the Incheon International Airport (IIA) by integrating the concept of circular economy, as opposed to the concept of the linear value chain, to Incheon Airport Economic Zone (IAEZ). Design/Methodology/Approach - Combining with the theoretical background of the airport hubs and the concept of circular economy, development strategies built on two pillars of the ‘service convergence platform’ and the ‘smart city data platform’ are suggested for IIA’s open ecosystem. To do this, the study explores the literature survey and data on global hub airports, extracts the competitive advantages as hubs, and formulate strategies by integrating the concepts of the circular economy and hub airport. Findings - This paper facilitates the IIA’s development by combining the unique competencies of Korea’s ICT technology on big data with the circular economy concept, which creates innovative business models and new values for the stakeholders. To secure brand and global leadership as a hub airport, the “smart city platforming” of the economic zone of IIA is designed as an enabler of the circular economy to establish a virtuous cycle system. Research Implications - This conceptual combination of the circular economy and the airport zone can be applied to a wider global network by creating a global standard. IIA can sustain leadership and brand with innovative core competencies irreplaceable in competition.