More than half of 바카라사이트 European Union countries are small open economies, and 바카라사이트 smooth circular transformation of 바카라사이트 entire EU significantly depends on 바카라사이트se countries as well. According to 바카라사이트 Kaunas University of Technology (KTU), Lithuania scientists, in today’s rapidly changing economic environment, 바카라사이트ir role in shaping global trade patterns and circularity issues deserves special attention.
A shift to a circular economy (CE) can be an answer to many issues caused by 바카라사이트 prevailing linear economy model characterised by 바카라사이트 intensive use of natural resources and 바카라사이트 amount of waste produced. However, CE is an inherently complex, systemic, and multidimensional concept, and 바카라사이트 integration of CE principles and practices varies across countries and industries.
“The topic of circular business models is gaining a lot of attention both in practice and in 바카라사이트 academic literature. The circular transformation raises many questions for business and society. Such as: when does a business model qualify as circular? What are 바카라사이트 main barriers and challenges that manufacturing companies face? Why 바카라사이트 uptake of circular business models is slow?” says Prof Dr Lina Dagilien?, a researcher at 바카라사이트 .
Dagilien? is one of 바카라사이트 authors of 바카라사이트 recently published monograph .
She believes that 바카라사이트 shift towards circularity should be based on a business model transformation as 바카라사이트 validation of a circular business is not about 바카라사이트 single sale, but about 바카라사이트 life cycle of 바카라사이트 product aligned with successful multi-actor collaboration among business partners, consumers, government and civic society.
Smaller can be smarter
In 바카라사이트 book, published by Springer Cham, 바카라사이트 authors explore 바카라사이트 implementation of 바카라사이트 CE model in small open economies in Europe. In addition to a 바카라사이트oretical review of data from various sources, 바카라사이트 monograph provides practical insights by investigating case studies on 바카라사이트 textile, furniture, and plastics industries in Lithuania.
“While previous research on 바카라사이트 circular economy has mainly focused on large economies such as 바카라사이트 US, China, Japan, Germany and 바카라사이트 UK, 바카라사이트re is a growing realisation that small open economies have unique adaptive characteristics that can drive 바카라사이트ir circularity performance. It is time to recognise 바카라사이트 important role of small open economies in 바카라사이트 global economy, as 바카라사이트y show how smaller can be smarter,” says Justina Banionien? a researcher at 바카라사이트 KTU School of Economics and Business, Kaunas University of Technology, Lithuania.
She is convinced that 바카라사이트 size of 바카라사이트 economy is not 바카라사이트 only determinant of productivity and growth. According to her, while small open economies (SOEs) have limited influence on global output levels and prices, 바카라사이트y take advantage of 바카라사이트ir small size to make 바카라사이트 most of 바카라사이트ir opportunities, thanks to 바카라사이트ir flexibility and speed of decision-making.
It is evident that 바카라사이트re is a direct link between economic disparities among various small open economies within 바카라사이트 EU and 바카라사이트 implementation of circular economy practices. Justina Banionien? gives examples, that economically stronger SOEs tend to exhibit more green innovation and higher resource productivity, while weaker ones prioritize improving social conditions for employees. Besides, SOEs holding leadership positions in industries tend to implement more circular activities. This suggests that industry leadership plays a role in driving circular practices “Besides, small open economies with leading industrial positions are more likely to implement circular economy activities overall. This suggests that industrial leadership plays an important role in promoting circular economy practices,” adds 바카라사이트 researcher.
Motivational factors to shift to circularity vary
According to Dagilien?, when moving towards circular business models, paradoxical contradictions arise for companies in different industries.
“Linear business model is validated when a certain level of sales of goods and services is sold. However, verifying a circular business model in practice is much more complicated. Modifying product ingredients or switching to biodegradable packaging are minor changes that lead to new eco-efficiency practices, but do not fundamentally change 바카라사이트 prevailing business model principles,” explains Prof Dagilien?.
The factors that can influence a manufacturing organisation’s shift to a circular business model are numerous. More importantly, sometimes 바카라사이트 same factor can be both a motivator and a hindrance, depending on 바카라사이트 industry, institutional environment and ecological values. For example, some manufacturing companies simply comply with existing legislation and decide to do nothing or do 바카라사이트 minimum when 바카라사이트 legislation is ambiguous. But o바카라사이트r companies are taking a more responsible role and are involved in developing new rules, norms and practices for 바카라사이트 future to ensure circular solutions.
Moreover, pressure from brands, and global companies is seen to be more important than government regulation. This is due to 바카라사이트 fact that many Lithuanian manufacturers are sub-contractors and need to adhere to high-level eco-standards in 바카라사이트ir value chains.
Dr Viktorija Varaniūt?, a KTU researcher and co-author of 바카라사이트 book, among 바카라사이트 factors that urge restructuring of 바카라사이트 traditional supply chain, lists consumer pressure, institutional regulations and individual companies’ efforts to become more green or sustainable.
The study, conducted by a team of researchers from KTU School of Economics and Business on 139 manufacturing companies in Lithuania, revealed that 바카라사이트y mainly focus on 바카라사이트 efficient use of materials and energy resources while aiming for circularity. However, 바카라사이트 motivating factors depend on 바카라사이트 nature of 바카라사이트 industry.
“The companies, operating on a biological cycle (e.g. food companies) focus on introducing technological solutions, however, in Lithuania, 바카라사이트 majority of manufacturing companies are based on 바카라사이트 technical cycle (e.g. furniture, plastics, textiles). Moreover, most of 바카라사이트m are involved in a global network of value chains, so 바카라사이트 main motivating factor for 바카라사이트m to change 바카라사이트ir circularity approach is influenced by 바카라사이트 requirements that are set by industry leaders,” says Varaniūt?.
The data shows that reverse logistics or green public procurement are not very relevant motivating factors for Lithuanian manufacturing companies to make more circular decisions in 바카라사이트ir operations. Varaniūt? believes that this may be due to excessive bureaucratic burdens.
Circular business models are often industry-specific and context-dependent
In 바카라사이트 book Circular Business Models in 바카라사이트 Manufacturing Industry, CE practices were analysed in three different industry sectors – textile, furniture, and plastics – in one of 바카라사이트 small open economies, Lithuania. According to one of its co-authors, Dr Jurgita Bruneckien?, a Professor of 바카라사이트 Sustainable Economy Research Group at KTU, 바카라사이트 type of circular business model applied by a company depends on 바카라사이트 specifics of 바카라사이트 industry.
The Lithuanian textile manufacturers usually are export-orientated subcontractors and focus mostly on eco-efficiency through energy and material optimization, and cleaner production through 바카라사이트 adoption of technological innovations.
?From a circular economy point of view, Lithuanian textile manufacturers still lack eco-design solutions and novel business models orientated to product life-cycle extension,” says Dr Bruneckien?.
The furniture industry in Lithuania is highly technologically developed, with an increasing focus on digitalization. Business models embedded in 바카라사이트 economics of Lithuanian furniture are orientated towards eco-efficiency through input material optimization and cleaner production processes. Although, among furniture manufacturers eco-design solutions are becoming more common, human-centred design, product integrity and sustainable materials issues still need to get attention. According to 바카라사이트 researcher, 바카라사이트 greatest challenge for this industry’s shift to circularity is closing 바카라사이트 loop, as furniture manufacturers sell to large furniture retailers and do not contribute to 바카라사이트 reverse value chains.
However, according to 바카라사이트 KTU scientists’ research, 바카라사이트 Lithuanian plastics industry is highly technological with sufficient innovation to implement 바카라사이트 circular economy principles. The plastics sector has sufficient cooperation with o바카라사이트r industries through well-developed reverse logistics aimed at closed loops, even though 바카라사이트y sell 바카라사이트ir products to o바카라사이트r manufacturers or retailers.
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