IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v33y2024i4p3422-3439.html
   My bibliography  Save this article

Viability of sustainable logistics practices enabling circular economy: A system dynamics approach

Author

Listed:
  • Chamari Pamoshika Jayarathna
  • Duzgun Agdas
  • Les Dawes

Abstract

Transitioning toward a circular economy (CE) offers a promising avenue for achieving sustainable logistics systems. Nevertheless, the assessment of sustainable logistics practices (SLPs) in the CE context presents challenges due to the inherent dynamism and complexity of logistics systems. This study aims to assess SLPs toward a CE by employing a system dynamics analysis. Specifically, we focus on four sustainability practices: green purchasing (GP), eco‐design (ED), reverse logistics (RL), and green transportation (GT). These practices are assessed in terms of economic, environmental, and social dimensions of sustainability performance using a hypothetical case study centered on pallet manufacturing and distribution system. The results revealed that the RL practice yields improved economic and social performance, while GT enhances environmental performance more significantly when compared to the other three practices. Our analysis shows RL as a promising practice that enhances overall sustainability performance. This model serves as a valuable tool for decision‐makers aiding them in the prioritization of sustainability practices based on their performance within various CE strategies.

Suggested Citation

  • Chamari Pamoshika Jayarathna & Duzgun Agdas & Les Dawes, 2024. "Viability of sustainable logistics practices enabling circular economy: A system dynamics approach," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3422-3439, May.
    • Handle: RePEc:bla:bstrat:v:33:y:2024:i:4:p:3422-3439
    DOI: 10.1002/bse.3655
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.3655
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.3655?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sebastian K. Anil & Junfeng Ma & Gül E. Kremer & Charles David Ray & Shirin M. Shahidi, 2020. "Life cycle assessment comparison of wooden and plastic pallets in the grocery industry," Journal of Industrial Ecology, Yale University, vol. 24(4), pages 871-886, August.
    2. NNC Pushpamali & Duzgun Agdas & Timothy M. Rose & Tan Yigitcanlar, 2021. "Stakeholder perception of reverse logistics practices on supply chain performance," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 60-70, January.
    3. Patyal, Vishal Singh & Kumar, Ravi & Kushwah, Shiksha, 2021. "Modeling barriers to the adoption of electric vehicles: An Indian perspective," Energy, Elsevier, vol. 237(C).
    4. Dace, Elina & Bazbauers, Gatis & Berzina, Alise & Davidsen, Pål I., 2014. "System dynamics model for analyzing effects of eco-design policy on packaging waste management system," Resources, Conservation & Recycling, Elsevier, vol. 87(C), pages 175-190.
    5. Asoke Dey & Paul LaGuardia & Mahesh Srinivasan, 2011. "Building sustainability in logistics operations: a research agenda," Management Research Review, Emerald Group Publishing Limited, vol. 34(11), pages 1237-1259, October.
    6. B.C.P. Jayarathna & C.N. Wickramasinghe, 2019. "Determinants of green supply chain practices of manufacturing companies in Sri Lanka," International Journal of Productivity and Quality Management, Inderscience Enterprises Ltd, vol. 28(1), pages 103-127.
    7. Geng, Ruoqi & Mansouri, S. Afshin & Aktas, Emel, 2017. "The relationship between green supply chain management and performance: A meta-analysis of empirical evidences in Asian emerging economies," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 245-258.
    8. Kirchherr, Julian & Reike, Denise & Hekkert, Marko, 2017. "Conceptualizing the circular economy: An analysis of 114 definitions," Resources, Conservation & Recycling, Elsevier, vol. 127(C), pages 221-232.
    9. Chiara Mio & Antonio Costantini & Silvia Panfilo & Sonia Baggio, 2020. "CSR and management control integration. Evidence from an employee welfare plan implementation," MANAGEMENT CONTROL, FrancoAngeli Editore, vol. 2020(Suppl. 1), pages 151-175.
    10. Michael Mutingi, 2014. "The impact of reverse logistics in green supply chain management: a system dynamics analysis," International Journal of Industrial and Systems Engineering, Inderscience Enterprises Ltd, vol. 17(2), pages 186-201.
    11. Marcus Linder & Steven Sarasini & Patricia Loon, 2017. "A Metric for Quantifying Product-Level Circularity," Journal of Industrial Ecology, Yale University, vol. 21(3), pages 545-558, June.
    12. Prosman, Ernst Johannes & Cagliano, Raffaella, 2022. "A contingency perspective on manufacturing configurations for the circular economy: Insights from successful start-ups," International Journal of Production Economics, Elsevier, vol. 249(C).
    13. Saleh, Mohamed & Oliva, Rogelio & Kampmann, Christian Erik & Davidsen, Pål I., 2010. "A comprehensive analytical approach for policy analysis of system dynamics models," European Journal of Operational Research, Elsevier, vol. 203(3), pages 673-683, June.
    14. Rajat Panwar & Eva Niesten, 2020. "Advancing Circular Economy," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2890-2892, September.
    15. Manuel E. Morales & Ana Batlles-delaFuente & Francisco Joaquín Cortés-García & Luis Jesús Belmonte-Ureña, 2021. "Theoretical Research on Circular Economy and Sustainability Trade-Offs and Synergies," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    16. Willi Haas & Fridolin Krausmann & Dominik Wiedenhofer & Markus Heinz, 2015. "How Circular is the Global Economy?: An Assessment of Material Flows, Waste Production, and Recycling in the European Union and the World in 2005," Journal of Industrial Ecology, Yale University, vol. 19(5), pages 765-777, October.
    17. Elia, Valerio & Gnoni, Maria Grazia, 2015. "Designing an effective closed loop system for pallet management," International Journal of Production Economics, Elsevier, vol. 170(PC), pages 730-740.
    18. Rodney Thomas & Jessica L. Darby & David Dobrzykowski & Remko van Hoek, 2021. "Decomposing Social Sustainability: Signaling Theory Insights into Supplier Selection Decisions," Journal of Supply Chain Management, Institute for Supply Management, vol. 57(4), pages 117-136, October.
    19. Liobikienė, Genovaitė & Mandravickaitė, Justina & Bernatonienė, Jurga, 2016. "Theory of planned behavior approach to understand the green purchasing behavior in the EU: A cross-cultural study," Ecological Economics, Elsevier, vol. 125(C), pages 38-46.
    20. Federico Cosenz & Vinicius Picanço Rodrigues & Francesco Rosati, 2020. "Dynamic business modeling for sustainability: Exploring a system dynamics perspective to develop sustainable business models," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 651-664, February.
    21. Thomas A. Tsalis & Ioannis E. Nikolaou, 2017. "Assessing the Effects of Climate Change Regulations on the Business Community: A System Dynamic Approach," Business Strategy and the Environment, Wiley Blackwell, vol. 26(6), pages 826-843, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Andreea Loredana Bîrgovan & Elena Simina Lakatos & Andrea Szilagyi & Lucian Ionel Cioca & Roxana Lavinia Pacurariu & George Ciobanu & Elena Cristina Rada, 2022. "How Should We Measure? A Review of Circular Cities Indicators," IJERPH, MDPI, vol. 19(9), pages 1-16, April.
    2. Pablo Piñones & Ivan Derpich & Ricardo Venegas, 2023. "Circular Economy 4.0 Evaluation Model for Urban Road Infrastructure Projects, CIROAD," Sustainability, MDPI, vol. 15(4), pages 1-32, February.
    3. Cris Garcia-Saravia Ortiz-de-Montellano & Yvonne Meer, 2022. "A Theoretical Framework for Circular Processes and Circular Impacts Through a Comprehensive Review of Indicators," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 23(2), pages 291-314, June.
    4. Alisha Tuladhar & Konstantinos Iatridis & Dimo Dimov, 2024. "Collaboration among circular start‐ups and incumbents in the circular economy context," Business Strategy and the Environment, Wiley Blackwell, vol. 33(4), pages 3317-3330, May.
    5. D. D’Amato, 2021. "Sustainability Narratives as Transformative Solution Pathways: Zooming in on the Circular Economy," Circular Economy and Sustainability, Springer, vol. 1(1), pages 231-242, June.
    6. Michael Saidani & Alissa Kendall & Bernard Yannou & Yann Leroy & François Cluzel, 2019. "Closing the loop on platinum from catalytic converters: Contributions from material flow analysis and circularity indicators," Post-Print hal-02094798, HAL.
    7. Caroline Samberger & Sanaz Imen & Katerina Messologitis & Arthur Umble & Joseph G. Jacangelo, 2024. "Assessing circularity of wastewater treatment systems: A critical review of indicators," Journal of Industrial Ecology, Yale University, vol. 28(2), pages 262-276, April.
    8. Concepción Garcés-Ayerbe & Pilar Rivera-Torres & Inés Suárez-Perales & Dante I. Leyva-de la Hiz, 2019. "Is It Possible to Change from a Linear to a Circular Economy? An Overview of Opportunities and Barriers for European Small and Medium-Sized Enterprise Companies," IJERPH, MDPI, vol. 16(5), pages 1-15, March.
    9. Chembessi Chedrak & Gohoungodji Paulin & Juste Rajaonson, 2023. "“A fine wine, better with age”: Circular economy historical roots and influential publications: A bibliometric analysis using Reference Publication Year Spectroscopy (RPYS)," Journal of Industrial Ecology, Yale University, vol. 27(6), pages 1593-1612, December.
    10. Georgios Lanaras-Mamounis & Anastasios Kipritsis & Thomas A. Tsalis & Konstantinos Ι. Vatalis & Ioannis E. Nikolaou, 2022. "A Framework for Assessing the Contribution of Firms to Circular Economy: a Triple-Level Approach," Circular Economy and Sustainability, Springer, vol. 2(3), pages 883-902, September.
    11. Frank Figge & Andrea Stevenson Thorpe & Siarhei Manzhynski & Melissa Gutberlet, 2022. "The us in reUSe. Theorizing the how and why of the circular economy," Business Strategy and the Environment, Wiley Blackwell, vol. 31(6), pages 2741-2753, September.
    12. Skare, Marinko & Gavurova, Beata & Kovac, Viliam, 2024. "Mitigating resource curse impact through implementing circular economy effective strategies," Resources Policy, Elsevier, vol. 92(C).
    13. Dominik Noll & Christian Lauk & Willi Haas & Simron Jit Singh & Panos Petridis & Dominik Wiedenhofer, 2022. "The sociometabolic transition of a small Greek island: Assessing stock dynamics, resource flows, and material circularity from 1929 to 2019," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 577-591, April.
    14. Rodríguez-Espíndola, Oscar & Cuevas-Romo, Ana & Chowdhury, Soumyadeb & Díaz-Acevedo, Natalie & Albores, Pavel & Despoudi, Stella & Malesios, Chrisovalantis & Dey, Prasanta, 2022. "The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental performance: Evidence from Mexican SMEs," International Journal of Production Economics, Elsevier, vol. 248(C).
    15. Arru, Brunella & Furesi, Roberto & Pulina, Pietro & Sau, Paola & Madau, Fabio A., 2022. "The Circular Economy in the Agri-food system: A Performance Measurement of European Countries," Economia agro-alimentare / Food Economy, Italian Society of Agri-food Economics/Società Italiana di Economia Agro-Alimentare (SIEA), vol. 24(2), September.
    16. Patrick Grüning & Justina Banionienė & Lina Dagilienė & Michael Donadelli & Marcus Jüppner & Renatas Kizys & Kai Lessmann, 2021. "The Quadrilemma of a Small Open Circular Economy Through a Prism of the 9R Strategies," Bank of Lithuania Working Paper Series 96, Bank of Lithuania.
    17. Ewa Mazur-Wierzbicka, 2021. "Towards Circular Economy—A Comparative Analysis of the Countries of the European Union," Resources, MDPI, vol. 10(5), pages 1-25, May.
    18. Hervé Corvellec & Alison F. Stowell & Nils Johansson, 2022. "Critiques of the circular economy," Journal of Industrial Ecology, Yale University, vol. 26(2), pages 421-432, April.
    19. Meleddu, Marta & Vecco, Marilena & Mazzanti, Massimiliano, 2024. "The Role of Voluntary Environmental Policies Towards Achieving Circularity," Ecological Economics, Elsevier, vol. 219(C).
    20. Bhavesh Kumar & Love Kumar & Avinash Kumar & Ramna Kumari & Uroosa Tagar & Claudio Sassanelli, 2024. "Green finance in circular economy: a literature review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 16419-16459, July.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:33:y:2024:i:4:p:3422-3439. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.