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An economic model of circular supply network dynamics: Toward an understanding of performance measurement in the context of multiple stakeholders

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  • Paul James Brown
  • Christopher Bajada

Abstract

The circular economy (CE) is increasingly being seen as a way in which organizations and economies can become environmentally sustainable. In this context, a key challenge facing multiple‐stakeholder collaborations in circular supply networks (CSNs) is the need to coordinate activities, as well as to monitor and benchmark sustainability performance. The limited formal analysis of CE production dynamics and performance indicators of activities in the CSN has contributed to these challenges. To address this we develop an economic model of material flow in a CSN that incorporates multiple stakeholder effects, and two novel performance indicators that: (i) estimate the joint effects of the speed of recycling, and the effectiveness of collection and conversion of recycled material on production; and (ii) a measure of the upper bound production possibilities for a given recyclable material cycling through a CSN. These indicators will be informative for monitoring, benchmarking and incentivizing performance across CSNs and informing public policy debates and strategies.

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  • Paul James Brown & Christopher Bajada, 2018. "An economic model of circular supply network dynamics: Toward an understanding of performance measurement in the context of multiple stakeholders," Business Strategy and the Environment, Wiley Blackwell, vol. 27(5), pages 643-655, July.
    • Handle: RePEc:bla:bstrat:v:27:y:2018:i:5:p:643-655
    DOI: 10.1002/bse.2069
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    2. Ghinoi, Stefano & Silvestri, Francesco & Steiner, Bodo, 2020. "The role of local stakeholders in disseminating knowledge for supporting the circular economy: a network analysis approach," Ecological Economics, Elsevier, vol. 169(C).
    3. Dennis Vegter & Jos van Hillegersberg & Matthias Olthaar, 2021. "Performance Measurement Systems for Circular Supply Chain Management: Current State of Development," Sustainability, MDPI, vol. 13(21), pages 1-18, November.
    4. Arfaoui, Nabila & Le Bas, Christian & Vernier, Marie-France & Vo, Linh-Chi, 2022. "How do governance arrangements matter in the circular economy? Lessons from five methanation projects based on the social-ecological system framework," Ecological Economics, Elsevier, vol. 197(C).
    5. Elena Rangoni Gargano & Alessia Cornella & Pasqualina Sacco, 2023. "Governance Model for a Territory Circularity Index," Sustainability, MDPI, vol. 15(5), pages 1-15, February.
    6. Manavalan Ethirajan & Thanigai Arasu M & Jayakrishna Kandasamy & Vimal K.E.K & Simon Peter Nadeem & Anil Kumar, 2021. "Analysing the risks of adopting circular economy initiatives in manufacturing supply chains," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 204-236, January.
    7. J. Rincón-Moreno & M. Ormazábal & C. Jaca, 2022. "Stakeholder Perspectives in Transitioning to a Local Circular Economy: a Case Study in Spain," Circular Economy and Sustainability,, Springer.
    8. Mechthild Donner & Hugo de Vries, 2021. "How to innovate business models for a circular bio‐economy?," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 1932-1947, May.
    9. Polina Baranova, 2022. "Environmental capability development in a multi‐stakeholder network setting: Dynamic learning through multi‐stakeholder interactions," Business Strategy and the Environment, Wiley Blackwell, vol. 31(7), pages 3406-3420, November.
    10. Stuart Danvers & Jonathan Robertson & Ambika Zutshi, 2023. "Conceptualizing How Collaboration Advances Circularity," Sustainability, MDPI, vol. 15(6), pages 1-23, March.
    11. Pina Puntillo & Carmela Gulluscio & Donald Huisingh & Stefania Veltri, 2021. "Reevaluating waste as a resource under a circular economy approach from a system perspective: Findings from a case study," Business Strategy and the Environment, Wiley Blackwell, vol. 30(2), pages 968-984, February.
    12. Zafar Husain & Annayath Maqbool & Abid Haleem & R. D. Pathak & Danny Samson, 2021. "Analyzing the business models for circular economy implementation: a fuzzy TOPSIS approach," Operations Management Research, Springer, vol. 14(3), pages 256-271, December.
    13. Anja Marie Bundgaard & Rikke Dorothea Huulgaard, 2019. "Luxury products for the circular economy? A case study of Bang & Olufsen," Business Strategy and the Environment, Wiley Blackwell, vol. 28(5), pages 699-709, July.
    14. Paolo Esposito & Valerio Brescia & Chiara Fantauzzi & Rocco Frondizi, 2021. "Understanding Social Impact and Value Creation in Hybrid Organizations: The Case of Italian Civil Service," Sustainability, MDPI, vol. 13(7), pages 1-26, April.

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