Digital technologies and circular economy in supply chain management: in the era of COVID-19 pandemic

How far has research into disruptive innovations in the field of sustainability come to date?

The term 'disruptive innovation' has been on everyone's lips for some years now, both in theory and in practice. This type of innovation is considered promising when it comes to the transition to sustainability. Based on a critical literature review comprising 121 academic articles, this study provides a systematic overview of the state of research on disruptive innovation for sustainability over 20 years. This overview makes it possible to determine whether and how an accumulation of knowledge has taken place in this area. The study reports on the selected theories, methods and definitions of the core concepts used. A thematic analysis was conducted that identified five broad themes, namely business models, people skills, supply chains, product/service development and transformations/transitions. In addition, the evolution of thematic areas over time is presented. The results indicate that there is a significant need for greater knowledge accumulation. This paper proposes concrete directions for future research to come closer to this goal.

Trust (in)congruence, open innovation, and circular economy performance: Polynomial regression and response surface analyses

Engaging partner firms in open innovation is critical to overcoming internal resource/capability constraints to achieve firm and supply chain circular economy (CE) performance, yet scholars have not examined this link empirically. Further, while researchers have repeatedly emphasized trust as a key driver of open innovation performance, little is known from a dyadic trust perspective (e.g., congruence vs. incongruence, high-high congruence vs. low-low congruence). To fill these gaps, we propose a theoretical model based on the social exchange theory (SET) and test it using a dyadic dataset of listed Chinese manufacturing firms. The results suggest that 1) rather than unilateral trust from the focal firm or its partners, trust congruence is more predictive of successful open process and product innovations, 2) regarding congruence types (low-low vs. high-high), congruence at higher levels of trust facilitates open product innovation more than low-low trust congruence; interestingly, such an effect is not significant for open process innovation, 3) open process innovation has a positive influence on the focal firm's CE performance, but its impact on supply chain CE performance is not statistically significant, and 4) open product innovation has a significantly positive impact on the focal firm and supply chain CE performance. Our findings still hold after analyzing time-lagged models and alternative measurements as robustness checks. Our study provides meaningful theoretical contributions to the literature and useful, practical insights for managing inter-organizational relationships, open innovation, and CE performance.

Disentangling circular economy practices and firm's sustainability performance: A systematic literature review of past achievements and future promises

This paper systematically and critically reviews the literature on the intersection of circular economy practices (CEPs) and sustainability performance (SP). We synthesize and analyze the extant literature to uncover the knowledge gaps, highlight the contradictory views, and provide a comprehensive overview of the field. Following a detailed database search, we selected 104 empirical studies published in peer-reviewed journals for analysis. Our review reports the publication trends, top publishing journal outlets, research methodologies, and empirical contexts. We outline the theoretical underpinnings, identify the diverse circular economy practices and the key factors that impact circular economy practices and sustainable performance. The review shows a propensity for most authors to reuse established theories or not use theory at all, revealing the need for theory development. Furthermore, our analysis revealed that R&D and innovation, digital technologies, organizational capabilities/resources, and stakeholder and institutional pressure substantially influence the CEPs - SP relationship. Through our detailed assessment of the existing literature, we identified and proposed several themes and avenues for future research.

Circular Economy Research in the COVID-19 Era: a Review and the Road Ahead

The onset of the Coronavirus Disease 2019 (COVID-19) pandemic has resulted in a major crisis that has severely impacted numerous economic, environmental, and social aspects of human life. During the pandemic, the potential of the circular economy (CE) has gained increasing attention as a prospective remedy for numerous sustainability problems. This systematic literature review charts CE research in the COVID-19 era. To this end, 160 journal articles were selected from the Scopus database. The performance indicators of the literature were determined and described through a bibliometric analysis. Moreover, the conceptual structure of CE research was identified via a keyword co-occurrence network. Based on bibliographic coupling, the focus of CE research in the COVID-19 era revolves mainly around five thematic areas, including: (1) waste management; (2) digitalization and sustainable supply chain management; (3) the impact of COVID-19 on food systems; (4) sustainable development goals, smart cities, and bioeconomy; and (5) closed-loop supply chains. Overall, this review contributes to enriching the literature by determining the main thematic areas and future research directions that can help to advance the transition to the CE and reduce the impact of COVID-19 and similar disasters in the future.

Digital supply chain transformation: effect of firm’s knowledge creation capabilities under COVID-19 supply chain disruption risk

Digital supply chain (SC) transformation has emerged as a way to improve information sharing, better manage demand, and reduce costs in supply chain management. However, the majority of firms are unable to transform their supply chains into digital models. Thus, this study aims to identify the key drivers of digital SC transformation and provide empirical evidence on the extent to which firms’ knowledge creation capabilities could impact firms’ level of digital supply chain transformation. Based on a knowledge-based view, this study proposes that firms’ knowledge creation capabilities – which consist of the capacity to absorb external knowledge and the intent to learn with partners within the SC – are crucial to the successful knowledge transfer required to digitially transform, particularly under the effects of COVID-19 supply chain disruption risks. Survey data collected from 923 Vietnamese firms participating in cross-border trades were analyzed using partial least squares structural equation modeling (PLS-SEM). This study finds that firms’ absorptive capacity and learning intent are critical drivers of their digital supply chain transformation. Moreover, the high uncertainties in external environments are found to substantially accelerate the digital transformation processes and influence the effectiveness of firms’ knowledge creation capabilities in digital SC transformation. Significantly, firms are more inclined toward external knowledge sources to cope with disruption risks in the supply chain. This study contributes a novel approach to better understanding the role of knowledge creation capabilities in responding to supply chain disruption risks and fills a gap in research on drivers of successful digital SC transformation.

Government Supports, Digital Capability, and Organizational Resilience Capacity during COVID-19: The Moderation Role of Organizational Unlearning

This paper provides an investigation into how different types of government supports can be used to enhance organizational resilience capacity during the COVID-19 pandemic. Based on resource orchestration theory, this study examines the effects of direct government support and indirect government support on organizational resilience capacity, the mediation role of digital capability, and the moderation effects of organizational unlearning. The empirical results from 205 Chinese firms show that direct government support and indirect government support have positive effects on organizational resilience capacity, which were mediated by digital capability. In addition, organizational unlearning positively and negatively moderates the positive relationship between direct government support, indirect government support and digital capability. Our theoretical discussion and empirical results contribute to the literature related to organizational resilience, digital capability, government support, and organizational unlearning.