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Article
Publication date: 25 September 2018

Enes Ünal, Andrea Urbinati and Davide Chiaroni

The purpose of this paper is to investigate the managerial practices that companies can implement in order to design a circular economy business model and how companies can create…

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Abstract

Purpose

The purpose of this paper is to investigate the managerial practices that companies can implement in order to design a circular economy business model and how companies can create and capture value from a circular economy business model.

Design/methodology/approach

The paper adopts a single case study methodology with semi-structured interviews and company, supplier, and manufacturing site visits, conducted in a small-to-medium-size Italian company operating in the office supply industry.

Findings

The theoretical setting maps a set of managerial practices for a circular economy business model and sets the research gaps and questions in a research framework designed along three main dimensions: value network, customer value proposition and interface, and managerial commitment. Then, through an empirical analysis, the findings reveal that the proposed dimensions are interdependent and reinforce each other. Moreover, the managerial commitment as moderating factor between the value network and the customer value proposition and interface dimensions is identified as essential for reaching the intended goals of circular economy business models.

Research limitations/implications

This study maximizes the depth of the phenomenon under investigation by leveraging a single case study methodology, which ideally helps in a theory-testing approach as in the present case. Future research opportunities could be found in qualitative and quantitative studies to increase the generalizability of the findings of this paper.

Practical implications

The paper presents a set of relevant managerial practices for circular economy business models that can be used by managers who have the will to embrace in practice circular economy principles to support the design, change, or upgrade of the business model of companies within which they operate.

Originality/value

An interdisciplinary approach that integrates the research streams of circular economy, social psychology, organizational behavior, and business model design has been pursued to test the theoretical setting and the research framework for circular economy business models in a real-world context.

Details

Journal of Manufacturing Technology Management, vol. 30 no. 3
Type: Research Article
ISSN: 1741-038X

Keywords

Book part
Publication date: 6 December 2013

Maurizio Catulli, Julian K. Lindley, Nick B. Reed, Andrew Green, Hajra Hyseni and Sushma Kiri

The purpose of this chapter is to explore the interaction between access-based consumption (ABC) and consumer culture in the specific context of baby products, and connect the two…

Abstract

Purpose

The purpose of this chapter is to explore the interaction between access-based consumption (ABC) and consumer culture in the specific context of baby products, and connect the two streams of consumer research and design theory, by associating ABC with product service systems (PSS) which are seen as desirable as they offer a promise of sustainability.

Methodology/approach

Within an action research approach consisting of the establishment of a pilot service provision, we conducted ethnographies including in-depth interviews and focus groups.

Findings

The adoption of access-based provisions is constrained by low compatibility with consumer culture. Consumers are concerned with the provision’s ability to satisfy their needs, what this mode of consumption says about them, and the extent to which it associates them with communities of practice.

Research limitations

The limitations are the typical ones of action research, which is linked to a unique, researcher-generated context where the researcher is also a participant, and therefore are difficult to generalize.

Research implications

The large-scale implementation of PSS underpinning ABC is problematic as it challenges consumers’ needs for self-expression and affiliation; however, we found that consumers in this specific context are responsive to the environmental efficiency of PSS.

Originality/value

Our research explores the intersection between consumer research and design, and consumers’ response to sustainable business models which underpin ABC.

Details

Consumer Culture Theory
Type: Book
ISBN: 978-1-78190-811-2

Keywords

Article
Publication date: 28 January 2014

Laura Smith, Roger Maull and Irene C.L. Ng

The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product…

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Abstract

Purpose

The purpose of this paper is to provide further insight into operations management of the product-service (P-S) transition, known as servitization, and the resulting product service system (PSS) offerings. In exploring the P-S transition, this paper adopts a service-dominant (S-D) logic view of value creation, using it as a lens through which to explore value propositions of the P-S transition and their operations design.

Design/methodology/approach

This paper presents an in-depth case study of an original equipment manufacturer of durable capital equipment who, over the last five years, has expanded its offerings to include use- and result-orientated PSS. The research design uses a multi-method approach; employing 28 in-depth qualitative interviews with customers and employees and analysis of texts, documents and secondary data including five years of enterprise resource planning (ERP), call centre and contract data.

Findings

The paper identifies ten generic P-S attributes that are abstracted into four nested value propositions: asset value proposition; recovery value proposition; availability value proposition; and outcome value proposition. In examining the operations design for delivery of these value propositions, it is found that the role and importance of contextual variety increases as the organisation moves through the value propositions. Interdependencies amongst the value propositions and differences in operational design for each value proposition are also found.

Research limitations/implications

The paper investigates PSS through a S-D logic mindset. First, the paper considers value propositions of PSS not according to “product” or “service” but in terms of how resources (both material and human) are optimally designed to co-create customer value. Second, a value co-creation system of nested value propositions is illustrated. In so doing, the findings have a number of implications for literature on both PSS and S-D logic. In addition, the research adds to the PSS literature through the identification and consideration of the concept of contextual use variety.

Practical implications

The paper demonstrates the complexity of the transition from product to service. Specifically, service cannot be seen as a bolt-on extra to their product offering; complexity caused by interactions and changes to the core offering require a systems perspective and consideration of both firm and customer skills and resources.

Originality/value

This paper extends existing literature on the P-S transition and its implications for operations management. Notably, it takes an S-D logic perspective of value creation and in so doing highlights the importance and role of contextual use variety in the P-S transition. It also provides further empirical evidence that the P-S transition cannot be treated as discrete stages but is evolutionary and requires a complex systems perspective.

Details

International Journal of Operations & Production Management, vol. 34 no. 2
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 23 August 2022

Carl Kühl, Heather Dawn Skipworth, Michael Bourlakis and Emel Aktas

This paper aims to examine the relationships between macro-, meso- and micro-level contextual factors that enable or inhibit the contribution of product service systems (PSS) to…

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Abstract

Purpose

This paper aims to examine the relationships between macro-, meso- and micro-level contextual factors that enable or inhibit the contribution of product service systems (PSS) to circularity. It is informed by the natural resource-based view (NRBV) and the multi-level perspective as theoretical lenses.

Design/methodology/approach

A theory elaboration approach is used through three in-depth case studies of UK and German manufacturers. Case studies provide use- and result-oriented PSS for personal computers, power tools and wind turbines. Multiple sources of evidence, including 20 semi-structured interviews, company documents and quantitative data, are triangulated to improve the validity of the results.

Findings

Empirical evidence for relationships between macro-, meso- and micro-level contextual factors show significant barriers to the extending and cycling of resource loops, primarily through maintenance, repairs and refurbishment. A firm’s environmental awareness has a determining role in the contribution of PSS to circularity. The evidence from two use-oriented PSS reveals different circularity maturity levels.

Originality/value

This research makes three key contributions. Firstly, it elaborates on NRBV by showing that a firm’s environmental awareness determines product stewardship. The type of product stewardship practices depends on the enabling and inhibiting effects of macro- and meso-level factors. Secondly, it shows that use-oriented PSS have different circularity profiles and proposes three circularity maturity levels. Finally, it provides an empirically validated framework of macro-, meso- and micro-level enablers and barriers and how they interact to enable or inhibit circularity in PSS.

Details

International Journal of Operations & Production Management, vol. 43 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 August 2001

J.G. de Wilt, P.J.M. Diederen, M. Butter and A. Tukker

With rising public concern over animal welfare, food safety and GM crops, Europe’s farmers, breeders and food processors are caught in the eye of a storm. While some are…

Abstract

With rising public concern over animal welfare, food safety and GM crops, Europe’s farmers, breeders and food processors are caught in the eye of a storm. While some are “returning to the soil” with traditional organic methods, others are breeding crops and animals using biotechnology, for markets as diverse as power generation and pharmaceuticals. For Europe’s policymakers social and ecological sustainability are paramount, but public information is also a prerequisite for meaningful debate.

Details

Foresight, vol. 3 no. 4
Type: Research Article
ISSN: 1463-6689

Keywords

Article
Publication date: 5 June 2009

A. Azarenko, R. Roy, E. Shehab and A. Tiwari

The purpose of this paper is to develop a technical product‐service systems (t‐PSS) for the BoX® (Big OptiX) ultra precision free‐form grinding machine which has been designed and…

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Abstract

Purpose

The purpose of this paper is to develop a technical product‐service systems (t‐PSS) for the BoX® (Big OptiX) ultra precision free‐form grinding machine which has been designed and developed at Cranfield University. BoX is a new machine concept where advanced mass production and ultra precision technologies are combined.

Design/methodology/approach

This work utilises the machine as a demonstration case study to investigate t‐PSS for the machine tool providers. It develops three t‐PSS business models for the BoX machine: product‐, use‐ and result‐oriented.

Findings

The paper discusses the stakeholders' responsibilities, cash flows, application sectors, and consequently benefits and shortcomings of the three business approaches.

Practical implications

The enhancement of competition from low cost economies, vibrant market requirements and increasing customer demands cannot be addressed merely by the latest achievements in technology. As a response to this, the modern manufacturing industry is shifting its orientation towards t‐PSS. t‐PSS is an integrated product and service offering that delivers value in use.

Originality/value

The novelty of this paper lies in identifying and analysing the key implications of t‐PSS on machine tool industry using the BoX machine as an example case study.

Details

Journal of Manufacturing Technology Management, vol. 20 no. 5
Type: Research Article
ISSN: 1741-038X

Keywords

Book part
Publication date: 19 April 2022

M. Ali Ülkü, Dawne M. Skinner and Gonca Yıldırım

The earth’s carrying capacity cannot withstand the pace of consumption resulting from current economic models, mainly the linear economy (LE) built on a throwaway culture. In the…

Abstract

The earth’s carrying capacity cannot withstand the pace of consumption resulting from current economic models, mainly the linear economy (LE) built on a throwaway culture. In the last few decades, the concept of a circular economy (CE), aiming to design waste out of the economy and mimic ecosystems, emerged as a strong alternative to LE. Being at the heart of the economic landscape, supply chains (SCs) need to respond to the necessary shift to CE. In so doing, the planning and execution of circular supply chains (CSCs) require a broader comprehension of CE and more sophisticated and large-scale analytical decision models. This chapter surveys extant literature on available best practices and quantitative models for sustainable supply chains (SSCs) and offers a new definition of CSC. Mapping on the knowledge extracted from this classification, potential gaps and strengths in the literature are identified. Key research papers on the “closed-loop” and “open-loop” ends of CSCs are highlighted. Challenges in developing CSC performance indicators and prescriptive models are emphasized.

Book part
Publication date: 6 September 2017

Mara Del Baldo

This chapter focuses on the care of our “common home,” emphasizes the complexity of the crisis, and suggests the path to overcome it through renewed environmental, economic…

Abstract

This chapter focuses on the care of our “common home,” emphasizes the complexity of the crisis, and suggests the path to overcome it through renewed environmental, economic, anthropological, and social ecology. Starting from the premise of the Encyclical Letter Laudato Sì (Pope Francis, 2015), the chapter discusses the role of leadership models based on virtues and moral constructs to promote a new business culture. Which leadership models and which business models are necessary to guide companies toward the integral development?

After a review of the Encyclical Letter, the chapter traces the theoretical framework of leadership theories connected with the emergence of a sustainability-oriented business model. The empirical analysis explores three cases of exemplary Italian companies which show how entrepreneurs can promote cultural reorientation, can help others to unlearn the bad habits of “turbo-capitalism,” and place value on humanity, relationships, and the love of the place in which they do business.

This chapter contributes to the development of leadership approaches and models incorporating the orientation toward the common good. Accordingly, it highlights the “roots” of entrepreneurial and managerial behavior which appear to inspire a profound rethinking of business conduct. From the business examples analyzed, the chapter shows models that make integral development possible.

Details

Integral Ecology and Sustainable Business
Type: Book
ISBN: 978-1-78714-463-7

Keywords

Book part
Publication date: 13 September 2018

Jacob Fry, Manfred Lenzen, Damien Giurco and Stefan Pauliuk

The production of waste creates both direct and indirect environmental impacts. A range of strategies are available to reduce the generation of waste by industry and households…

Abstract

The production of waste creates both direct and indirect environmental impacts. A range of strategies are available to reduce the generation of waste by industry and households, and to select waste treatment approaches that minimise environmental harm. However, evaluating these strategies requires reliable and detailed data on waste production and treatment. Unfortunately, published Australian waste data are typically highly aggregated, published by a variety of entities in different formats and do not form a complete time-series. We demonstrate a technique for constructing a multi-regional waste supply-use (MRWSU) framework for Australia using information from numerous waste data sources. This is the first subnational waste input–output framework to be constructed for Australia. We construct the framework using the Industrial Ecology Virtual Laboratory (IELab), a cloud-hosted computational platform for building Australian multiregional input–output tables. The structure of the framework complies with the System of Environmental-Economic Accounting (SEEA). We demonstrate the use of the MRWSU framework by calculating waste ‘footprints’ that enumerate the full domestic supply chain waste production for Australian consumers.

Details

Unmaking Waste in Production and Consumption: Towards the Circular Economy
Type: Book
ISBN: 978-1-78714-620-4

Keywords

Book part
Publication date: 13 September 2018

Kirsty Máté

Conventional shopping-scapes are designed to promote a linear form of consumption. Products are moved from production systems through consumer distribution nodal points. The…

Abstract

Conventional shopping-scapes are designed to promote a linear form of consumption. Products are moved from production systems through consumer distribution nodal points. The consumption of commodities through these points is promoted as the main, if not only, legitimate activity of shopping centres. A circular economic (CE) paradigm offers an alternative to the current model of linear consumption so that there are restorative processes to ensure products, components and materials are valued at all stages of product life (Ellen Macarthur Foundation, 2013). However, this model, like its contemporary linear model, overlooks the opportunities for more socially rewarding consumption that could particularly be addressed through the shopping scape. The ByeBuy! Shop was conceived to test ideas on an alternative shopping scape to increase social engagement and reduced consumption without the use of money for exchange. Accordingly, it is used here to exemplify a CE paradigm.

Details

Unmaking Waste in Production and Consumption: Towards the Circular Economy
Type: Book
ISBN: 978-1-78714-620-4

Keywords

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