S. Papadelis, A. Flamos and S. Androulaki
The purpose of this paper is to present the Business Strategy Assessment Model (BSAM) approach, in an attempt to explore the principle dynamics of an energy‐economic system with…
Abstract
Purpose
The purpose of this paper is to present the Business Strategy Assessment Model (BSAM) approach, in an attempt to explore the principle dynamics of an energy‐economic system with emphasis on the private actors' point of view and the impact different policy instruments may have on the decisions of private actors with different characteristics.
Design/methodology/approach
In the BSAM model, investment decisions under consideration depend on their perceived financial value. Basis for the financial valuation of an investment option is formed by simulating market dynamics with alternative price scenarios. The outputs include: investment strategies, derived as a function of the (uncertain) state vector of future market conditions and risk premium, calculated by contrasting the expected net present value for the optimal timing of the investment and the expected net present value of an immediate investment generation module of the BSAM, while both of these outputs are estimated for each available technology option.
Findings
Different models make different assumptions shedding light upon different aspects of the socio‐economic systems they attempt to analyze and hitherto, no such model succeeds in incorporating all the perceptions that are driving the integration of energy policies. BSAM is based on the notion that a convergence between policy evaluation and business strategy assessment models could be truly beneficial for regulators that aim to derive effective energy policies. Both the algorithm adopted and the structure of the modules of BSAM facilitate the analysis of complex interactions in a firm's decision making process, and even more the what‐if analyses needed for alternative policy measure evaluation.
Originality/value
Setting the framework for a modelling approach that incorporates the role of risk‐return perceptions of private actor's with diverse features, portfolio effects, path dependence and agent competition, into appraising energy and climate policies, and suggest that the heterogeneous world of investors requires reflexive assessment techniques. Above and beyond, understanding the drivers and triggers of firm's investment strategies will allow improving the effectiveness of energy policies.
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Anne-Mari Järvenpää, Jari Jussila and Iivari Kunttu
The circular economy (CE) model is seen as an alternative model to the linear economy models, which seem to be reaching their physical limits. The CE business model aims to reuse…
Abstract
The circular economy (CE) model is seen as an alternative model to the linear economy models, which seem to be reaching their physical limits. The CE business model aims to reuse materials and decrease the need for virgin materials. This requires the implementation of a reverse supply chain, close collaboration between actors, as well as well-organized logistics. For this reason, the CE companies have typically high demand for digitalized processes and the utilization of data on both operational and business development dimensions. Also the utilization of big data collected from the companies’ business environment can provide new opportunities for business development in CE. Despite the fact that utilization of data collected from the business environment and operations enables data-driven approaches for various decision-making functions in companies, many companies still struggle to figure out how to use analytics to take advantage of their data. In the small- and medium-sized enterprises (SMEs), in particular, the managers are facing difficulties with ever-increasing amounts of data and sophisticated analytics. Indeed, prior research identified several kinds of barriers to the effective utilization of data in SMEs. Still, research on data-driven decision-making remains scarce in CE context. This chapter presents a case study consisting of seven cases, all representing SMEs operating in the field of CE in Finland. In the case study, the barriers and practical challenges for data-driven decision-making in CE SMEs are investigated. Based on the case study results, this chapter proposes that utilization of data, lack of resources, lack of capabilities, and regulation are the main barriers to data-driven decision-making in CE SMEs.
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Efstratios Loizou, Fotios Chatzitheodoridis, Anastasios Michailidis, Meropi Tsakiri and Giorgos Theodossiou
The purpose of this paper is to reveal the dynamics of the Greek energy sector. As energy sectors contribute substantially to a national economy and stimulate national output and…
Abstract
Purpose
The purpose of this paper is to reveal the dynamics of the Greek energy sector. As energy sectors contribute substantially to a national economy and stimulate national output and employment, it is important to identify their upward and downward linkages and interrelations with the other sectors of the economy.
Design/methodology/approach
To do this and capture such relations in the economy, a general equilibrium model is used. In specific, input–output (I–O) analysis is used and a model is specifically built for the Greek economy to examine in detail the energy sectors. Multiplier and linkage analysis is performed to assess their dynamics in terms of output, household income and employment.
Findings
Results indicate that the three energy sectors’ multipliers and elasticities, though are not ranking in the first places, are enough high indicating their strong linkages in the economy and their potentials to enhance the economy’s total output, employment and household income.
Research limitations/implications
Further disaggregation of the economy’s energy sectors is needed to make clearer the separation among renewable and non-renewable sector, to identify and compare the dynamics and contribution of each category in the economy. Additionally, an environmental I–O model would indicate consequences on the environment and not just pure economic benefits.
Practical implications
Through the analysis, it can be seen that energy sectors and secondary energy products have the ability to drive a country’s economic activity through exports and intersectoral linkages, even if it is not a crude petroleum producing economy. Thus, knowledge of the economic impacts of such sectors is a valuable information.
Originality/value
The current study provides significant information of an economy’s energy sectors regarding their ability to support economic activity and employment. A general equilibrium model is used, examining the whole economy, to assess direct and indirect interrelationships.
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Pernille Seljom and Eva Rosenberg
The aim of this paper is to provide a general overview of the global oil and natural gas resources, production, technology development, energy use, emissions and costs. The…
Abstract
Purpose
The aim of this paper is to provide a general overview of the global oil and natural gas resources, production, technology development, energy use, emissions and costs. The activity is based on the European project “Risk of Energy Availability: Common Corridors for Europe Supply Security” (REACCESS) and the data collected was used in this project as an input to evaluate the technical, economical and environmental characteristics of the energy corridors to European Union (EU).
Design/methodology/approach
The paper is based on literature reviews and data collection from national authorities, oil companies, international associations and international organisations.
Findings
The work provides a general overview of oil and natural gas resources, production rates, recent technology developments, costs, losses, energy consumption and emissions on a world regional level. Main issues related to the role of conventional oil and natural gas in the energy import framework are summarised in this paper.
Research limitations/implications
The present study provides information on conventional oil and natural gas resources and it is limited to primary production technologies.
Originality/value
An outline of oil and natural gas on a regional level is presented. The paper provides general introduction to the subject and it is a valuable input for modelling and analyses of conventional oil and natural gas in the present and in the future energy system.
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Andrea Carpignano, Chiara Nironi and Francesco Ganci
The research activity presented in this paper has the objective of developing models for the evaluation of technological risk and loss of production due to failures, which are…
Abstract
Purpose
The research activity presented in this paper has the objective of developing models for the evaluation of technological risk and loss of production due to failures, which are among the criterions that enable the choice of optimal scenarios for energy supply. This activity is based on the European Project “Risk of Energy Availability: Common Corridors for Europe Supply Security” (REACCESS), which aims to develop an analytical tool to analyse scenarios for future secure European Union (EU) energy supply.
Design/methodology/approach
The paper proposes an innovative approach, since nowadays a generalised analytic model for risk assessment in large‐scale energetic systems does not exist. In particular, the methodology adopted includes models to assess risk for people safety, risk for the environment and availability for corridors and the related infrastructures. As regards technological risk, accidents producing loss of lives in the population and environmental damage are taken into account; while for the loss of production primary attention is paid to technical failures and maintenance.
Findings
Since the analytic models developed perform a large‐scale assessment, they must be flexible and simplified to adapt to different situations and to be easily updated when different future scenarios are investigated. Details of the analysis depend on the precision of data collected and inserted in the models. The damage assessment is affected by deficiency and uncertainties related to territorial and statistical data. Nevertheless, the outcomes obtained for each energy commodity are reasonable and often comparable to literature data.
Originality/value
Based on this study output, technological risk can be considered, more systematically than in the past, in the selection of EU strategies for future energy supply. The corridors social cost is included in future strategies selection, in addition to purely economical and environmental evaluations.
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Jing Shao, Shuo Huang, Isaac Lemus-Aguilar and Enes Ünal
Although China can be considered an early adopter of the circular economy, there are few studies of remanufacturing business models (BMs) in the context of the Chinese automobile…
Abstract
Purpose
Although China can be considered an early adopter of the circular economy, there are few studies of remanufacturing business models (BMs) in the context of the Chinese automobile industry. The purpose of this paper is to investigate viable BMs, summarizes current obstacles and anticipates future development opportunities and directions.
Design/methodology/approach
The cross-case analysis considers the roles of value networks and of customer value proposition and interface in circular business models (CBMs) by examining the strategies and tactical measures of two leading remanufacturers. The data are collected from semi-structured interviews, documents, etc.
Findings
The analysis identifies the following components of viable BMs of remanufacturers: reclaiming raw material, managing used components, producing new products and marketing. Several current obstacles are summarized from four perspectives: policy barriers and insufficient government support; consumer awareness; related product quality; and technology. The study also identifies future directions and opportunities for the automobile parts remanufacturing industry.
Originality/value
This study contributes to the CBM literature by mapping the barriers and opportunities in remanufacturing. The results have shed some light into the field of sustainability in manufacturing firms by empirically testing the theoretical model. The results will help managers to design viable CBMs in different contexts.
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Tharaka De Vass, Alka Ashwini Nand, Ananya Bhattacharya, Daniel Prajogo, Glen Croy, Amrik Sohal and Kristian Rotaru
Using a soft-hard continuum of drivers and barriers, this research seeks to explain wood companies' adoption of circular economy (CE) practices.
Abstract
Purpose
Using a soft-hard continuum of drivers and barriers, this research seeks to explain wood companies' adoption of circular economy (CE) practices.
Design/methodology/approach
Multiple interviews, complemented by secondary documents and site observations were used to investigate three wood-based companies that have adopted CE practices. The 10R framework and soft-hard continuum are used to guide data analysis.
Findings
The adoption of 10R practices were explained by soft-factor incentives of leaders' values and vision and openness for innovation, all within a regulatory void, and eventually overcome hard-factor barriers of process development, supply chain capability and customer behaviours at product end-of-life.
Practical implications
Crucial for CE model adoption are leaders' positive attitudes, subsequently grown across the companies. The 10Rs are a prompt for CE practice adoption to capture and retain value and generate revenue. Collaboration across the supply chain, including customers and other value capture companies (e.g. repurposing companies), is essential to maximise value retention. Government should play an increased soft-factor incentive regulatory role and support CE practices to overcome hard-factor barriers.
Originality/value
This study contributes an explanation of CE adoption within a relatively unsupported context. Despite the regulatory void, CE practice adoption was driven by leader values. To achieve their vision and overcome the numerous barriers, suppliers and customers required a large investment in education. Indeed, customer behaviour, previously thought to be an incentive for CE adoption, is also identified as a barrier.
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Beatrice Re, Francesca Sanguineti and Pietro Previtali
By rooting our study in Lewin’s change management theory, we conduct an in-depth case study of a medium-sized fashion firm transitioning toward a CE. Through adopting a…
Abstract
Purpose
By rooting our study in Lewin’s change management theory, we conduct an in-depth case study of a medium-sized fashion firm transitioning toward a CE. Through adopting a multi-level and processual perspective, we offer empirical evidence of the change process and elucidate the drivers and resistance to change factors.
Design/methodology/approach
We opt for a single in-depth longitudinal case study of a fashion firm that was born with a sustainable business model and that is in transition toward the CE. We involve multiple informants, and we adopt a processual approach to uncover the drivers and resistance to change factors at different organizational levels (i.e. top and middle management and operational levels).
Findings
Our findings enable us to highlight novel key drivers and resistance factors at the organizational level. Regarding the former, we reveal the involvement of top and middle management in the decision-making process and the recruitment of young people. For the resistance factors, we identify adaptation to structural change, reluctant mindset, internal divergence of ideas, and commitment of all organizational levels to the CE.
Research limitations/implications
The paper presents some limitations. First, our research is based on a single in-depth case study, which, while allowing for rich, detailed exploration, inherently limits the statistical generalizability of our findings. Focusing just on one organization located in a specific industry and geographical context means that our results may not be directly applicable to all organizational settings. Firms belonging to other industries would probably show different patterns of change due to industry-specific drivers and barriers. Also, the institutional and geographical contexts of our case study inevitably influence the cognitive and cultural aspects of the drivers and barriers we identified. Then, our research provides a processual yet not longitudinal view of OCCE, thus not fully capturing the long-term dynamics of the phenomenon.
Practical implications
Our findings underscore the critical role of visionary leadership, particularly stemming from the CEO, in driving CE transition. Leaders should articulate a clear vision for sustainability, foster a culture of experimentation and actively identify opportunities for CE implementation. Moreover, our results suggest that organizational culture plays a fundamental role in supporting CE transition. Creating a dedicated sustainability team to coordinate CE initiatives and counter the internal resistance, fostering the engagement of all organizational levels in CE initiatives, developing training programs to enhance CE knowledge and skills throughout the organization and recruiting young talents are some of the key recommendations we posit to firms aiming to start the process of CE transition.
Originality/value
This paper contributes to the emerging literature on “Organizational Change toward a Circular Economy” (OCCE) by providing a processual analysis of organizational change toward the CE. Through an in-depth exploratory study of a fashion firm in transition toward the CE, we were able to identify drivers and resistance factors and to offer a visual map of our findings to graphically show the change toward the CE and the drivers and resistance to change factors that have thus far been under-investigated from an organizational level (Graessler et al., 2024).
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Sharfuddin Ahmed Khan, Wafaa Laalaoui, Fatma Hokal, Mariam Tareq and Laila Ahmad
Reverse logistics (RL) has become integral in modern supply chains, with many companies investing in circular economy (CE), a recuperative and effective industrial economy. The…
Abstract
Purpose
Reverse logistics (RL) has become integral in modern supply chains, with many companies investing in circular economy (CE), a recuperative and effective industrial economy. The traditional linear model triggered many negative environmental consequences such as climate change, ocean pollution, loss of biodiversity and land degradation. The development of RL strategies that support the transition between RL to CE is crucial. The purpose of this paper is to connect RL with CE in the context of Industry 4.0 and develop a hierarchal structure to explore the relationship between RL and CE critical success factors in the context of Industry 4.0.
Design/methodology/approach
This study used both qualitative and quantitative approach. Literature review in collaboration with the Delphi method is used to identify and validate critical success factors. Then, the ISM-based model and MICMAC method were used to determine the relationship between CE and RL success factors and its driving and dependence power.
Findings
This study result shows that waste reduction, skilled employees and expert's involvement and top management commitment and support will provide guidelines and paths for implementing CE and RL, leading to the competitiveness of a firm.
Practical implications
The findings provide managerial insight, particularly useful to third-party logistics companies' managers who are looking to implement RL and CE, to help prioritize where to invest company resources to generate prime difference. Furthermore, this study also identified Industry 4.0 technologies, which would tackle top identified critical success factors within the hierarchical model such as block chain and digital platforms.
Originality/value
This paper contributes to the literature by exploring the connection between RL and CE in the context of Industry 4.0 that determines the critical success factors enabling sustainable inter-firm collaboration.
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Sonia Mehrotra and Santosh Rupa Jaladi
The purpose of this paper is to investigate the practices that start-ups in emerging economies can implement to design circular economy business models and how they can create and…
Abstract
Purpose
The purpose of this paper is to investigate the practices that start-ups in emerging economies can implement to design circular economy business models and how they can create and capture value from a circular economy business model.
Design/methodology/approach
The paper adopts a qualitative case method approach with semi-structured interviews with start-up founder promoters, its employees, its beneficiaries and its customers, conducted in two local Indian start-ups engaged in the manufacture of products and providing services that promote adoption of circular economy principles.
Findings
Analysis of the two business models reveals common patterns in building value proposition. The findings suggest that start-up ventures adopt an iterative approach to produce reusable and interlinked products and co-create with customers, vendors and local communities. They adopt mechanisms that can create, deliver and capture value while maintaining economic viability, and thus contribute towards micro- and macro-level benefits.
Research limitations/implications
This study maximizes the depth of the phenomenon under investigation by leveraging case study methodology. Future research opportunities could be found in quantitative studies to increase the generalizability of the findings of this paper.
Practical implications
The paper presents a theoretical model linking the circular business model design and deployment mechanisms that can be used by start-up entrepreneurs desirous of embracing circular economy principles and thus contribute towards environmental, economic and developmental goals in emerging economies.
Social implications
To accelerate the transition of adoption of circularity principles in emerging markets, start-up ventures could adopt circular business models that contribute towards achieving positive behavioural change. This can be achieved by integrating with different stakeholders in the value network such that they play a vital role in the process of value creation and delivery and benefit from the value captured.
Originality/value
An interdisciplinary approach that integrates the research streams of circular economy, and business model design has been pursued to identify the design and deployment mechanisms adopted in the circular business models of start-ups in real-world emerging economies’ context.