Evaluation of circular economy business models for SMEs using spherical fuzzy TOPSIS: an application from a developing countries’ perspective

Author(s):  
Kerem Toker ◽  
Ali Görener
2020 ◽  
Author(s):  
Sergiu Șișcan

<p>Nowadays the global ecological crisis continues aggravating. The environmental issues are on agenda, getting increased public attention (e.g. protests caused by waste problems and climate change all around the world). Depleting resources, trash mountains, garbage islands, toxic emissions etc. require change of economy model from linear (resource extraction-production-usage-throwing away) to the circular one (recycled resource-production-usage-recycling). More than that, multiple waste use as well as resources reuse may bring to business and economy billions of dollars.</p><p>The very idea of recycle is practiced in the world since long ago. However, it has been done by few resources (collection of waste paper, scrub metal, glass bottles etc.) without shaping an economic system as a whole.</p><p>Another problematic issue is that the recycling does not always means to be ecological. The mode of recycling in countries with low eco-standards results in heavy pollution (e.g. e-waste “recycling” by fire at open air in Africa, India leads to emission of toxins; ship recycling in Bangladesh leads to polluted beaches and water). Methods of recycling in developing countries often are primitive and may be dangerous. Sometimes, entrepreneurs from developed countries are responsible for such state of affairs. They send legally or illegally part of wastes for that primitive recycling in developing countries. It is important to have awareness of the fact that everything is interdependent. If one part of the Earth is full of toxins and harmful fumes, its other part is inevitably affected over time. It is necessary to carry out recycling in all countries establishing strict environmental laws worldwide, and to make it based on smart technologies.</p><p>Circular economy in its narrowest sense is an economy that simply processes waste.<br>A serious change in business models, public mentality and government policies is necessary to get to environmentally friendly economy. It aims at lengthening the use cycle of goods (e.g. clothes, mobile phones) and minimizing the personal waste of every citizen. The EU household’s food waste was estimated to be 47 million tons (EU FUSIONS, 2016). “More than 30% of clothes in Europeans’ wardrobes have not been used for at least a year. Once discarded, over half the garments are not recycled but end up in mixed household waste and are sent to incinerators or landfill” (EPRS, 2019). YouGov Omnibus research: a third (34%) of respondents of Singapore have thrown away an item of clothing after wearing it just once. (YouGov, 2017).</p><p>Thus, effective circular economy is not just about re-processing and saving resources but, first, emphasizes its focus on greening environment and reducing waste as it is, becoming an eco-circular economy. Secondly, it calls forth measures at not only national or regional level, but also proceeding from “Earth is our common home”, worldwide.</p>


Author(s):  
Zafar Husain ◽  
Annayath Maqbool ◽  
Abid Haleem ◽  
R. D. Pathak ◽  
Danny Samson

Social entrepreneurship plays a fundamental role in the economy and especially in the firm. Mainly in developing countries, social entrepreneurship is of primary importance and is socially necessary to try to alleviate social inequalities among the richest and the poorest in society. In this process of diminishing social differences, business models are of fundamental importance, especially digital models with intensive use of ICT. In this chapter, the author synthesizes the 57 digital business models that exist today and enhances the importance of the Circular Economy and the Socioeconomics of Solidarity as an emerging trend in economic thinking.


2020 ◽  
pp. 1242-1254
Author(s):  
Jose Manuel Saiz-Alvarez

Social entrepreneurship plays a fundamental role in the economy and especially in the firm. Mainly in developing countries, social entrepreneurship is of primary importance and is socially necessary to try to alleviate social inequalities among the richest and the poorest in society. In this process of diminishing social differences, business models are of fundamental importance, especially digital models with intensive use of ICT. In this chapter, the author synthesizes the 57 digital business models that exist today and enhances the importance of the Circular Economy and the Socioeconomics of Solidarity as an emerging trend in economic thinking.


2020 ◽  
Vol 25 (3) ◽  
pp. 505-525 ◽  
Author(s):  
Seeram Ramakrishna ◽  
Alfred Ngowi ◽  
Henk De Jager ◽  
Bankole O. Awuzie

Growing consumerism and population worldwide raises concerns about society’s sustainability aspirations. This has led to calls for concerted efforts to shift from the linear economy to a circular economy (CE), which are gaining momentum globally. CE approaches lead to a zero-waste scenario of economic growth and sustainable development. These approaches are based on semi-scientific and empirical concepts with technologies enabling 3Rs (reduce, reuse, recycle) and 6Rs (reuse, recycle, redesign, remanufacture, reduce, recover). Studies estimate that the transition to a CE would save the world in excess of a trillion dollars annually while creating new jobs, business opportunities and economic growth. The emerging industrial revolution will enhance the symbiotic pursuit of new technologies and CE to transform extant production systems and business models for sustainability. This article examines the trends, availability and readiness of fourth industrial revolution (4IR or industry 4.0) technologies (for example, Internet of Things [IoT], artificial intelligence [AI] and nanotechnology) to support and promote CE transitions within the higher education institutional context. Furthermore, it elucidates the role of universities as living laboratories for experimenting the utility of industry 4.0 technologies in driving the shift towards CE futures. The article concludes that universities should play a pivotal role in engendering CE transitions.


2021 ◽  
pp. 1-8
Author(s):  
Mokter Hossain ◽  
Jarkko Levänen ◽  
Marleen Wierenga

ABSTRACT Firms are often criticized for their reluctance to embrace sustainability in their business strategies. Frugal innovation is a recent concept that represents a new way for firms to serve underserved customers in developing countries while also promoting sustainability. Based on three cases of frugal innovation at the grassroots level in India, this article demonstrates how frugal innovation presents a promising way to tackle some of today's pressing societal problems with new business models. We use a range of parameters for economic, social, and environmental sustainability to strengthen the case for frugal innovation. This article attempts to inspire scholars to consider frugal innovation further in their future research endeavors and encourage firms to integrate it into their existing business models.


2021 ◽  
Vol 13 (4) ◽  
pp. 1899
Author(s):  
Fabiana Gatto ◽  
Ilaria Re

Reducing the environmental pressure along the products life cycle, increasing efficiency in the consumption of resources and use of renewable raw materials, and shifting the economic system toward a circular and a climate-neutral model represent the heart of the current macro-trends of the European Union (EU) policy agendas. The circular economy and bioeconomy concepts introduced in the EU’s Circular Economy Action Plan and the Bioeconomy Strategy support innovation in rethinking economic systems focusing on market uptaking of greener solutions based on less-intensive resource consumption. In recent decades, industrial research has devoted enormous investments to demonstrate sustainable circular bio-based business models capable of overcoming the “Valley of Death” through alternative strategic orientations of “technological-push” and “market-pull”. The study highlights industrial research’s evolution on bio-based circular business model validation, trends, and topics with particular attention to the empowering capacity of start-ups and small and medium-sized enterprises (SMEs) to close the loops in renewable biological use and reduce dependence on fossil fuels. The research methodology involves a bibliographic search based on the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) approach and the European Innovation Council (EIC) Accelerator Data Hub investigation to understand SMEs’ key success factors and start-ups of the circular bioeconomy sector. Eco and bio-based materials, nutraceuticals, and microalgae represent the most sustainable industry applications, leading to circular bioeconomy business models’ future perspective.


2021 ◽  
Vol 13 (3) ◽  
pp. 1021
Author(s):  
Sara Scipioni ◽  
Meir Russ ◽  
Federico Niccolini

To contribute to small and medium enterprises’ (SMEs) sustainable transition into the circular economy, the study proposes the activation of organizational learning (OL) processes—denoted here as multi-level knowledge creation, transfer, and retention processes—as a key phase in introducing circular business models (CBMs) at SME and supply chain (SC) level. The research employs a mixed-method approach, using the focus group methodology to identify contextual elements impacting on CBM-related OL processes, and a survey-based evaluation to single out the most frequently used OL processes inside Italian construction SMEs. As a main result, a CBM-oriented OL multi-level model offers a fine-grained understanding of contextual elements acting mutually as barriers and drivers for OL processes, as possible OL dynamics among them. The multi-level culture construct—composed of external stakeholders’, SC stakeholders’, and organizational culture—identify the key element to activate CBM-oriented OL processes. Main implications are related to the identification of cultural, structural, regulatory, and process contextual elements across the external, SC, and organizational levels, and their interrelation with applicable intraorganizational and interorganizational learning processes. The proposed model would contribute to an improved implementation of transitioning into the circular economy utilizing sustainable business models in the construction SMEs.


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