Circular supply chain management: Performance outcomes and the role of eco-industrial parks in China

Farooque, M., Zhang, A. , Liu, Y. and Hartley, J. L. (2022) Circular supply chain management: Performance outcomes and the role of eco-industrial parks in China. Transportation Research Part E: Logistics and Transportation Review, 157, 102596. (doi: 10.1016/j.tre.2021.102596)

Abstract

A circular economy (CE) is increasingly recognized as a more environmentally sustainable alternative to the dominant linear take-make-dispose economic model. We empirically investigate the effect of circular supply chain management (CSCM) on cost and financial performance in China, which has established the world’s largest system of eco-industrial parks (EIPs) to promote CE over the last decade. We combine the Natural Resource-Based View (NRBV), Contingent NRBV and the literature on CSCM to develop a conceptual model and test it using survey data collected from 255 Chinese manufacturing firms. The results show that CSCM, when exercised as a unified strategy, has a significant positive effect on cost and financial performance. Firms located within EIPs adopt CSCM at higher levels as compared to firms located outside EIPs. Nevertheless, the contextual factor of being located within an EIP does not moderate the CSCM practice-performance relationship, suggesting that performance is driven by practices rather than firms’ locations. These results were affirmed by post-survey participant validation in three focus group meetings and six face-to-face interviews. Our findings contribute to sustainability literature by offering a new construct and measurement items relevant to CSCM and provide practical insights to guide a transition to a CE.

• Item Type: Articles
• Additional Information: This research was supported by the National Social Science Foundation of China (Grant No. 19BGL090). Dr Abraham Zhang acknowledges partial funding support from the 2020 Endeavour Fund, Ministry of Business, Innovation & Employment of New Zealand (Project title: Amiomio ¯ Aotearoa - A Circular Economy for the Wellbeing of New Zealand).
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Zhang, Dr Abraham

Creator Roles

Zhang, A.: Conceptualization, Data curation, Formal analysis, Methodology, Supervision, Validation, Writing – original draft, Writing – review and editing

• Authors: Farooque, M., Zhang, A., Liu, Y., and Hartley, J. L.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: Transportation Research Part E: Logistics and Transportation Review
• Publisher: Elsevier
• ISSN: 1366-5545
• Published Online: 30 December 2021
• Copyright Holders: Copyright © 2021 Elsevier Ltd.
• First Published: First published in Transportation Research Part E: Logistics and Transportation Review 157:102596
• Publisher Policy: Reproduced in accordance with the publisher copyright policy