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

Farooque, Muhammad and Zhang, Abraham and Liu, Yanping and Hartley, Janet 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. p. 102596. ISSN 1366-5545

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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: Article
Uncontrolled Keywords: Circular supply chain management; Circular economy; Eco-industrial parks; Practice; Performance
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Essex Business School
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 06 Jan 2022 16:40
Last Modified: 06 Jan 2022 17:28
URI: http://repository.essex.ac.uk/id/eprint/31939

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