A unified framework for assessing the readiness of European Union economies to migrate to a circular modelling

Toward a Circular Economy in the Toy Industry: The Business Model of a Romanian Company

Nowadays, more and more business organizations are encouraged to find ways to produce high-quality products that are offered to users for their temporary enjoyment and then redistributed or sent to the next user pending. This is done without being conditioned to believe that we need to own something, use it for certain functions for a limited amount of time, and then throw it away. Toys are a perfect candidate for this approach. Given the lack of case studies explaining how companies can design and implement a circular economy in practice, especially in the toy industry, this study aimed to develop a case study based on Evertoys, a start-up operating in Romania, which is a country where the circular economy is only in an infancy phase. This study’s objective was to analyze this business model from the circular economy perspective. Regarding the methodology, the work followed the research strategy of the case study, which was developed by analyzing the opportunities and challenges of this toy-as-a-service model and taking into consideration the components of the Business Model Canvas. Our findings indicated the presence of driving factors, as well as barriers, in the implementation of circular economy practices.

Barriers and Drivers for Circular Economy 2.0 on the Firm Level: Russian Case

Historically, the development of the circular economy (CE) proceeds from the CE 1.0 stage, characterized by attention to waste management and recycling, to the CE 2.0 stage with an emphasis on resource efficiency and eco-efficiency, to the current CE 3.0 stage, in which the key factor to a company’s success is the business model. However, not all countries of the world simultaneously began transforming the national economy from a linear model to a circular one; many are still at the CE 1.0 and CE 2.0 stages, and do not have a developed system of institutions supporting the circular economy. In Russia, the concept of a circular economy has not yet received recognition in society and government; the stage of its development can be defined as CE 2.0. This study compares the barriers and drivers of CE development in the EU countries, a group of countries with a well-developed institutional support system, and in Russia, a country that does not have such a system. The study reveals that the most significant difference between countries with mature systems of institutional support and Russia lies in the regulatory sphere and in information and awareness about new available technologies and ways to increase resource efficiency, commercial attractiveness, and organizational feasibility. Changes in the first sphere are impossible without the participation of the national authorities; however, changes in the information sphere are feasible even without the government’s support. The actors in such changes can be international companies with access to resource-efficient new technologies and processes for organizing business.

Relationships between industry 4.0, sustainable manufacturing and circular economy: proposal of a research framework

Purpose

The digital revolution has brought many challenges and opportunities for the manufacturing firms. The impact of Industry 4.0 technology adoption on sustainable manufacturing and circular economy has been under-researched. This paper aims to review the latest articles in the area of Industry 4.0, sustainable manufacturing and circular economy and further developed a research framework showing key paths.

Design/methodology/approach

Qualitative research is performed in two stages. In the first stage, a review of the extant literature is performed to identify the barriers, drivers, challenges and opportunities. In the second stage, a research framework is proposed to integrate Industry 4.0 technology (big data analytics powered artificial intelligence) adoption, sustainable manufacturing and circular economy capabilities.

Findings

This research extends the knowledge base by providing a detailed review of Industry 4.0, sustainable manufacturing, and circular economy and proposes a research framework by integrating these three contemporary concepts in the context of supply chain management. Through an exploration of this integrative research framework, the authors propose a future research agenda and seven research propositions.

Research limitations/implications

It is important to understand the interplay between institutional pressures, tangible resources and human skills for Industry 4.0 technology (big data analytics powered artificial intelligence) adoption. Industry 4.0 technology (big data analytics powered artificial intelligence) adoption can positively influence sustainable manufacturing and circular economy capabilities. Managers must also put more attention to sustainable manufacturing to develop circular economic capabilities.

Social implications

Factory workers and the local communities generally suffer from various adverse effects resulting from the traditional manufacturing process. The quality of the environment is deteriorating to such an extent that people even staying miles away from the factory are also affected due to environmental pollution that is generated from factory operations. Hence, sustainable manufacturing is the only choice left to manufacturers that can help in the transition to a circular economy. The research framework can help firms to enhance circular economy capabilities.

Originality/value

This review paper contains the most updated work on Industry 4.0, sustainable manufacturing and circular economy. It also proposes a research framework to integrate these three concepts.

Circular Economy Concept in the Context of Economic Development in EU Countries

The need has arisen to implement a circular economic model that enables economic growth and prosperity in accordance with environmental protection and sustainable development because of the current unsustainable linear means of production in the economy. The aim of this paper is to determine the application of the circular economy concept in member countries of the European Union from 2008 to 2016. The purpose is to analyse whether economic development measured by GDP (gross domestic product) affects the analysed circular economy variables. Based on the hypotheses set, an econometric model was formed where GDP was identified as an independent variable, while the dependent variables were the production of municipal waste per capita, the recycling rate of municipal waste, the recycling rate of packaging waste by type of packaging, the recycling of bio-waste, and the recycling rate of e-waste. The first part of the statistical analysis conducted using the Stata software package shows the Pearson correlation between the abovestated variables, while the second part explores the univariate regression model. The results point towards the conclusion that the application of the circular economy concept can ensure economic growth and GDP growth while reducing the use of natural resources and ensuring greater environmental protection.