Purpose This study aims to address a significant gap in the International Business (IB) literature by analysing the implications of adopting a Circular Economy (CE) strategy on the competitiveness of the fashion sector in emerging economies, based on an Action Research Project experience in Colombia. This study develops an empirically validated conceptual model tailored to the sector’s high environmental impact potential and the limited availability of CE literature from the perspective of developing countries. Design/methodology/approach This research used a rigorous Action Research Project spanning two iterative cycles (Exploratory and Improvement), a recognised methodology for generating new academic insights while solving real-world business problems. This study is supported by an extensive literature review and qualitative methods, including focus groups and semi-structured interviews with experts, expanding the scope to include practitioners with extensive experience across Latin American contexts. Findings This research proposed the Advanced Competitive and Circular ENterprise Development model (ASCEND) to organise competitiveness drivers at the business, structural and systemic levels, framed by six CE fields of action. Seven key drivers were confirmed: environmental management, infrastructure, innovation capacity, economic capacity, technology, organisational performance and operational performance. Human Talent Management emerged as a vital driver, especially in this labour-intensive sector. Innovation was confirmed as essential across all CE fields to empower workers to “think circular”. The model is supported by mapping CE fields to RBV, DC, IO and IB perspectives. Research limitations/implications The ASCEND model provides actionable insights by proposing that CE strategic models must serve as an “equaliser,” balancing external systemic factors with the internal capacity to develop and reconfigure capabilities in uncertain, emerging markets. Future research should use the replicable Action Research Project methodology for cross-country comparative studies and the quantitative validation of the ASCEND model to the most effective implementation methodologies. Practical implications The findings of this study provide a strategic lens for international policymakers, MNE managers and SME owners of regions where the fashion sector plays a pivotal economic role. This research highlights the contribution of the CE and the need for supportive legislative tools, such as Extended Producer Responsibility (EPR) policies, and coordinated efforts to overcome the four identified barriers: economic, cultural, technical and institutional/legislative. Social implications Implementing the model can provide an opportunity to create sustainable jobs in the current uncertain economic reality, contribute to mitigating the fashion industry’s environmental impact and increase the concern of governments and institutions in strengthening entities that enhance regional competitiveness, such as clusters and trade chambers. Originality/value This research advocates for the implementation of the CE in the fashion sector within developing countries, particularly in the Latin American region. This paper is original in its focus on linking the CE as a source of competitive advantage in the global market. Therefore, this study highlights the fashion sector in Latin American emerging economies as a topic that has been confirmed to be insufficiently explored in detail within the academic literature. This study contributes theoretically by positioning the model within core competitive advantage frameworks (RBV/DC) and an IB context, offering crucial guidance for international trade management and sustainable development.
Implementing a Digital Product Passport (DPP) for Electric Vehicle Batteries (EVBs) is crucial for fostering sustainability and circularity within the EVB value chain. While a growing number of related concepts are becoming available, the understanding of DPP-related stakeholder perceptions is limited. Therefore, this study evaluates the information requirements of EVB value chain actors, focusing on the importance, availability, and accessibility of specific information attributes necessary for the DPP. The study follows a mixed-method approach, beginning with qualitative data collection through literature reviews and expert consultations, followed by a survey (n = 46) targeting stakeholders across EVB lifecycle phases and the conduct of an importance-availability analysis. The results cover, firstly, a comprehensive list of 40 information attributes, divided into sustainability and circularity-related information and general information. Secondly, the study reveals the perceived importance and availability of these information attributes through the lens of actors from the Beginning of Line (BoL), End of Life (EoL), and Battery Second Use (B2U) phases. Also, it adds the specific perspectives of individual value chain actors - designers, B2U actors, and recyclers. Thirdly, a ranking of the most important actors for successfully implementing the DPP is presented. The results indicate a critical need for enhanced information availability and accessibility, particularly concerning sustainability and circularity-related data. This study provides theoretical and practical implications for sustainable EVB lifecycle management using DPPs.
Sustainable consumption is crucial to transitioning toward a more sustainable society. Various tools, including information provision tools such as ecolabels, aim to promote sustainable consumption but are often criticized for failing to adequately inform consumers. This study examines digital product passports (DPPs), an emerging policy tool, as a means of enhancing consumer communication. Given the development of battery passports, the case of DPPs for electric vehicle batteries was selected. A method incorporating elements of the self-explicated and lead-user approaches was used, and a survey was conducted (n = 211) to determine which types of information provide the most value to consumers. The results identified the most relevant DPP attributes (e.g., "expected lifetime" and "CO2 footprint") from a consumer perspective. Groupwise comparisons based on environmental attitude and correlation analyses revealed that respondents' environmental attitudes significantly influenced their perceptions of the benefits of the investigated DPP attributes.
The expected rise in electromobility and the increasing use of lithium-ion batteries (LIBs) is generating new challenges and opportunities, particularly in the End-of-Life (EoL) management of batteries. One of these challenges are the socio-economic impacts associated with the EoL process steps on which this paper focuses on. With the method of Multi-Regional Input-Output (MRIO) analysis, a selected recycling process route in Europe is assessed regarding socio-economic impacts, first at current demand (baseline scenario) and followed by an upscaled demand. The results provide insight into differences in some socio-economic impact categories, such as employment, vulnerable employment, and worker remuneration. The scale-up scenarios show, among other things, an increase in the workforce and remuneration (positive impact). However, with an increase in vulnerable employment, negative socio-economic impacts are also evident in Europe-centered recycling processes. The results furthermore show that changing recycling processes can lead to sustainability trade-offs. Due to the limited number of indicators in the selected method, it is not possible to provide an overall picture of social impacts. However, this research shows a clear change in the individual impacts, which underlines the need for proactive measures to overcome infrastructure problems, expand recycling capacities, and improve employment conditions in all sectors.
Food supply chains (FSCs) play a critical role in ensuring food security but face increasing vulnerabilities to disruptions. With the objective to mitigate these challenges, this study focuses on assessing operational resilience within the Austrian dairy supply chain during sudden demand spikes. For this purpose, we introduce a novel framework for integrated decision-making which encompasses strategic, tactical, and operational perspectives, augmented with modular building blocks for FSC modelling and simulation. Based on this framework, we develop a discrete-event simulation model to assess and quantify the impact of strategic, tactical, and operational interventions on operational resilience. Our analysis reveals the effectiveness of upstream buffer stocks, adapted reordering strategies, and operational adjustments in response to demand increases. However, no single intervention consistently outperforms others across all performance metrics, emphasising the importance of tailored intervention selection. Hence, the major contributions, i.e. (1) the framework for integrated decision-making and (2) the quantification of potential interventions to enhance operational resilience, are useful for improving the operational resilience of FSCs and increase their ability to supply essentials in the short term despite disruptions. The results assist FSC actors in making more informed decisions to enhance operational resilience.
This paper examines the role of place in the local development of a circular economy and the potential for consequent social redistribution. Based on a case study of public, private and third-sector approaches to a circular economy in Hull, an industrial city in the northeast of England, it offers a critical analysis of the geographic distribution of socio-economic benefits from local circular economy developments. Policy goals of inclusivity (or a 'just transition') are not accomplished. However, attachment to place provides opportunities to bridge sectoral and jurisdictional boundaries and potentially generate more socially inclusive territorial-distributional outcomes.
An improved sustainability performance of one system does not automatically lead to an improved sustainability performance of larger systems (society and nature). A reliable sustainability assessment must be carried out to improve environmental and social sustainability performance for whole systems. It is necessary to show how a system of interest at any scale should (and can) improve sustainability performance. An examination of the literature on sustainability assessment highlights a lack of a systems perspective in most sustainability assessment frameworks. The aim of this paper is, therefore, to provide a framework that enables an assessment of environmental and social sustainability performance, taking systemic aspects into account. This assessment framework is based on a definition of first- and second-order sustainability performance. The former focuses on narrow efficiency issues, while second-order sustainability performance focuses on systemic effectiveness and covers sustainability impacts on society and nature. Improving the first-order level (narrow perspective) will not automatically lead to an improved second-order sustainability performance (systemic perspective). Thus, systemic effectiveness is not automatically increased in the case of first-order sustainability performance. Therefore, three essential dimensions have been identified and combined in an assessment framework, i.e., the dimension of scale, the decision horizon, and sustainability principles. The conceptualized assessment framework allows to analyze whether an action of a system of interest (e.g., corporate action, any process, project, or policy) contributes to global sustainable development.
Companies need to enhance their understanding of the environmental impacts of their products and services. Life cycle assessment (LCA) has become a prevalent method for evaluating these impacts. Despite significant advancements in LCA methodology and data availability, several challenges persist. Digital technologies may offer solutions to these challenges in LCA. Therefore, it is crucial to explore how digital technologies can be integrated into LCAs. A systematic literature review was conducted to examine the application of digital technologies, specifically blockchain, the Internet of Things (IoT), big data, and artificial intelligence (AI), within LCAs. The review included 103 peer-reviewed journal articles and conference papers. Contributions of these technologies were categorized according to the four LCA phases outlined in ISO 14040/44 standards. The findings were synthesized into a framework that highlights the individual and combined potential of these technologies for enhancing LCAs. The review reveals that IoT is primarily used in the inventory analysis phase, while blockchain, AI, and big data are applied across the goal and scope definition, inventory analysis, impact assessment, and interpretation phases. Based on these findings, a comprehensive theoretical concept was developed to outline all possible combinations of these four technologies with LCA for synergistic application. This study proposes a framework for integrating four key digital technologies—blockchain, IoT, big data, and AI—into LCAs to support environmental sustainability assessment from a company perspective. This framework offers a current overview and a foundation for future research. For LCA practitioners, it serves as a strategic tool for identifying potential technologies and making informed decisions about which digital technologies to apply in their assessments.
For global sustainable production and consumption goals to be met, circular economy strategies need to further preserve the value of extracted finite resources through the extension and renewal of products’ lifecycles. The integration of circular economy principles into the design of products opens strategic implications for organisations since elements such as new business models, re-arrangement of operations or further use of digital infrastructure are needed. Nevertheless, the complexity and uncertainty of planning for such arrangements leads incumbent firms to slowly make incremental moves towards circularity. To address this issue, two artefacts are introduced: first, a circular economy strategy-structuring process; and second, a strategy evaluation support. The strategy-structuring process is meant to depict the basic building blocks of a circular product design strategy and the internal structures existing among them. The evaluation support is used as a trade-off model, allowing to evaluate the strengths and weaknesses of strategy implementation scenarios depending on the number of uncertain relationships found among the building blocks of a given strategy. In addition, both artefacts are evaluated in a circular economy product planning context involving the redesign of two different product types. The evaluation reveals the overall effectiveness of the strategy-structuring process and the definition of more granular strategy implementation roadmaps by product planning teams that received feedback from the evaluation support. These results suggest that systematizing the formulation and evaluation of roadmaps to implement circular product design strategies (in this case, through the use of a modular framework and a tool to evaluate new roadmaps against those existing in the industry) might help to decrease the resource intensity planning for circularity.
The results of the most prevalent environmental lifecycle assessments represent the relative impact on the environment caused by the object being assessed. Hereby, the object is compared to its alternatives (to derive: Which is the better solution?) rather than to the carrying capacities of nature (to determine: Is it ultimately sustainable or not?). This poses a problem for implementing and assessing the progress towards sustainable development. In connection to this, prior research has started categorizing the constitutive research on lifecycle-based absolute environmental sustainability assessments.This paper adds to these efforts and provides a new point of view by categorizing the absolute environmental sustainability assessment approaches within the driver-pressure-state-impact-response framework. Hereby, we focus on the absolute environmental sustainability assessment approaches of (1.) the precedent methods of absolute pressures, and (2.) the state-of-the-art approaches of the impacts on nature. Their common challenges and limitations are discussed, along with a theoretical example. From there, we conclude the proposal of incorporating the absolute environmental sustainability pressure methods into the current discussion on lifecycle-based absolute environmental sustainability assessment approaches. Ultimately, we conclude that further research is required to connect the approaches to the level of application.
Despite stricter emission controls and the planned reduction of newly sold Internal Combustion Engine (ICE) cars, adequate repairing and recycling of old ICE cars remains vital, reflected also by the recent EURO7 standard that explicitly refers to repairability. Digital Product Passports (DPPs) have gained attention as enablers of transparent and traceable value chains and improved product lifecycle management. While the focus has been put on creating DPPs for electric vehicle batteries, research on the potentials and requirements for DPPs for the ICE and its well-known components, like the exhaust gas turbocharger, does not exist. Thus, this study systematically investigates what information such DPP needs to contain to support value chain actors' sustainability/circularity-related decision-making. A mixed-method approach is applied. The Supply Chain Oriented Process to Identify Stakeholders (SCOPIS) method, as well as two expert workshops (N = 8 and N = 6) and an expert survey (N = 8) served for identifying the stakeholders and their most relevant information requirements. The results consist of a refined and prioritized list of information requirements, a conceptual model of a DPP for the turbocharger, and the presentation of two use cases: refurbishment and recycling. This contribution serves as the foundation for handling ICEs sustainably and circularly. (c) 2024 The Authors. Published by Elsevier B.V.
Despite the increasing availability of tools and methods for sustainable and circular product design (DfS), their uptake in practice is slow. This is also true in the automotive industry, where DfS is an important measure for addressing the industry's negative environmental and social impacts. To facilitate DfS implementation, this paper uses an analytic hierarchy process (AHP) and offers, for the first time, a classification and prioritisation of the barriers that need to be overcome when implementing DfS into vehicle development processes. Based on a systematic literature review and on an expert workshop, the top 15 DfS barrier factors were derived and divided equally into five groups, following a multi-level structure. These factors and groups formed the input for a survey-based analytic hierarchy process with 38 European industry experts. The results show that strategic issues are the most important barriers, followed by the group of operational, personal, external, and tool-related barriers. Among the 15 barrier factors identified, the top five were (1) an unclear link to profitability, (2) lack of top management support, (3) difficulties in handling trade-offs, (4) high operational costs, and (5) a lack of integration of DfS into corporate strategy. The results indicate that while external constraints already exert pressure on automotive companies, they still face particular challenges when attempting to integrate sustainability into corporate strategies and in transferring such strategies to DfS activities at the operational level. The study results may be used to inform managerial policy and further research.
Operations management requires models, methods and tools that integrate both sustainability and operational excellence to support organizations in implementing long-term sustainability. The purpose of this research is to provide a strategy deployment framework integrating both corporate sustainability and operational excellence. The research approach includes an explorative literature review, providing a background on operational excellence, sustainability, and hoshin kanri, a special form of strategy deployment. Comprehensive frameworks for both strategy deployment (hoshin kanri) and sustainability (Framework for Strategic Sustainable Development) were used as a foundation and adapted towards a strategy deployment framework linking sustainability with operational excellence. This was done by integrating both frameworks and by including operational excellence enablers. The resulting framework illustrates how strategic sustainability goals can be aligned and deployed within businesses. This research contributes towards supporting corporations in their efforts in becoming sustainable businesses and serves as a theoretical base for future research.
The need to counteract environmental pollution and climate change has led to companies focusing on becoming more sustainable. Inter alia, product design is a huge lever for the achievement of improved environmental performance, given that about 80% of products' environmental impacts are determined during the design phase. Hence, it is crucial to incorporate sustainability and circularity considerations into the design process. However, designers often lack the required information to make more sustainable choices during the design phase. Therefore, we aim to identify information from different life cycle phases, which designers would consider supportive in making more sustainable choices and that could be delivered by digital product passports (DPPs). Given the upcoming battery regulation that requires the introduction of DPPs, the use case of battery design was chosen, and ten semi-structured interviews were carried out with battery designers and engineers. The results show the different information from the distinct life cycle phases, which designers consider as helpful in supporting them in designing more sustainable and circular batteries. This contribution adds to the literature on design for sustainability by exploring the potential of DPPs as means of information providers during the design phase of products. (c) 2024 The Authors. Published by Elsevier B.V.
Digital battery passports are a potentially helpful tool to facilitate the recycling of lithium-ion batteries. This is due to the information asymmetry between battery producers and end-of-life (EoL) actors. Tailoring a battery passport to EoL offers the opportunity to go beyond the current state of the art of battery passport legislation and add further details that are important for the recycling process. Therefore, this research looks at a suitable way to set up a battery passport to support the EoL of lithium-ion batteries. First, the data needs of the EoL phase were analyzed based on use cases described by eight experts through interviews. The results show a need for material related- and dynamic data, such as the state of health. The same expert interviews were then used to answer how these needed data could be provided. The results confirm the availability of most data but with gaps regarding dynamic data and use-phase information. Both the data needs and provision are then categorized and summarized into a data model. The discussion also provides an overview of the challenges and estimates the impact, depending on the scale of implementation. The results were used to set up a prototype platform for a battery passport.
AbstractThis chapter provides comprehensive insights into the potential of digital technologies for sustainable product management (SPM). Four key technologies (Artificial Intelligence, Big Data analytics, the Internet of Things, and blockchain) and their application for SPM are presented and discussed. Their potential is explored with regard to Life Cycle Assessment and Product Service Systems. Furthermore, the concept of the digital product passport is discussed, and their use in an SPM context is illustrated with reference to electric vehicle batteries. This chapter concludes with a critical reflection on the deployment of digital technologies for SPM and associated challenges relating to ethical and sustainability concerns.
Technological innovation can play a major role in developing a sustainable mobility system. To generate a state-of-the-art of sustainable mobility innovations, and understand its future trajectory we use the systemic perspective of the sustainable mobility paradigm Avoid-Shift-Improve to present a patent landscape of the entire land-transportation system. The descriptive part of our study covers 425,885 granted patent families between 1970 and 2016 across 75 patent jurisdictions. In the predictive part, we use this dataset to forecast sustainable mobility innovations till 2030. We identify the USA, and China are the leading knowledge importers in sustainable mobility innovations, whereas Japan and Germany are the leading knowledge exporters. Overall, our analysis suggests that there is a visible shift in sustainable mobility innovation towards a low emission mobility future that is more connected and electric than before. However, the combined effects of continued growth in innovation for efficiency gain in GHG emitting mobility technologies, a high level of uncertainty in future innovation trajectory in vehicle charging and hydrogen technology, and a low level of innovation activities in mass and non-motorized transportation technologies can imperil a faster transition to a zero-emission future of mobility.
Interorganizational collaboration and the use of new digital technologies, such as artificial intelligence (AI), big data analytics, internet of things (IoT), or blockchain technology, are regarded as key enablers in implementing sustainability and circular economy-oriented practices. While this is reflected in a few conceptual and case studies, statistical analyses on the topic are rare. No study so far has focused on collaboration, and digital technologies have only been studied in isolation. Therefore, the purpose of this study is to investigate the effect of interorganizational collaboration practices on a firm's circular economy practices and on outcomes (sustainability performance and economic performance), as well as the potentially facilitative role of new digital technologies on both. The research is based on a deductive approach, using a random sample of 112 Austrian manufacturing companies. The study employs partial least squares structural equation modeling (PLS-SEM), features a multiple-respondent design, and uses the dynamic capabilities view as a theoretical foundation. The study finds that interorganizational collaboration practices have a strong positive effect on the implementation of sustainability and CE practices, while the use of new digital technologies and general dynamic capabilities do not. The use of digital technologies positively affects only interorganizational collaboration, while general dynamic capabilities serve as an antecedent for both the use of digital technologies and interorganizational collaboration. Regarding the outcomes of CE implementation, the study finds a positive impact on firm-level sustainability and economic performance. From a theoretical point of view, the study provides a new perspective on the prerequisites for successful CE implementation, highlights the importance of collaboration, and contextualizes the role of new digital technologies and dynamic capabilities. From a practical point of view, based on the positive outcomes found, the study supports arguments in favor of company engagement in CE activity. It also serves to motivate purposive digitization and systems thinking in order to create efficient CE collaboration networks.
Assessing the sustainability of chemical processes in terms of environmental, economic, and social aspects, especially during the early stages of development, is crucial to designing sustainable manufacturing routes. In this study, we compared the sustainability performance of an electrochemical route for synthesizing noroxymorphone, an intermediate in the synthesis of opioid antagonists, with that of a conventional process. For that purpose, we followed the Safe and Sustainable by Design (SSbD) framework of the European Commission and applied selected sustainability indicators from the literature. Compared to the conventional procedure, the electrochemical process has the potential to offer advantages in all three dimensions of sustainability, primarily due to the lower environmental impacts of the employed reagents in the upstream supply chain and their reduced hazards during the production process. Furthermore, it was found that further steering the electrochemical process toward sustainability is possible by optimizing the solvents and reducing the use of hazardous reagents.