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Implementation of a real option in a sustainable supply chain: an empirical study of alkaline battery recycling

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  • Federica Cucchiella
  • Idiano D’Adamo
  • Massimo Gastaldi
  • S.C. Lenny Koh

Abstract

Green supply chain management (GSCM) has emerged as a key approach for enterprises seeking to become environmentally sustainable. This paper aims to evaluate and describe the advantages of a GSCM approach by analysing practices and performance consequences in the battery recycling sector. It seeks to integrate works in supply chain management (SCM), environmental management, performance management and real option (RO) theory into one framework. In particular, life cycle assessment (LCA) is applied to evaluate the environmental impact of a battery recycling plant project, and life cycle costing (LCC) is applied to evaluate its economic impact. Firms, also understanding the relevance of GSCM, have often avoided applying the green principles because of the elevated costs that such management involved. Such costs could also seem superior to the potential advantages since standard performance measurement systems are internally and business focused; for these reasons, we consider all the possible value deriving also by uncertainty associated to a green project using the RO theory. This work is one of the few and pioneering efforts to investigate GSCM practices in the battery recycling sector.

Suggested Citation

  • Federica Cucchiella & Idiano D’Adamo & Massimo Gastaldi & S.C. Lenny Koh, 2014. "Implementation of a real option in a sustainable supply chain: an empirical study of alkaline battery recycling," International Journal of Systems Science, Taylor & Francis Journals, vol. 45(6), pages 1268-1282, June.
    • Handle: RePEc:taf:tsysxx:v:45:y:2014:i:6:p:1268-1282
    DOI: 10.1080/00207721.2012.761458
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    Cited by:

    1. Philipp Sauer & Stefan Seuring, 2018. "A three-dimensional framework for multi-tier sustainable supply chain management," Post-Print hal-03926114, HAL.
    2. Dutta, Tanushree & Kim, Ki-Hyun & Deep, Akash & Szulejko, Jan E. & Vellingiri, Kowsalya & Kumar, Sandeep & Kwon, Eilhann E. & Yun, Seong-Taek, 2018. "Recovery of nanomaterials from battery and electronic wastes: A new paradigm of environmental waste management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3694-3704.
    3. Chen, Daqiang & Ignatius, Joshua & Sun, Danzhi & Zhan, Shalei & Zhou, Chenyu & Marra, Marianna & Demirbag, Mehmet, 2019. "Reverse logistics pricing strategy for a green supply chain: A view of customers' environmental awareness," International Journal of Production Economics, Elsevier, vol. 217(C), pages 197-210.

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