Dissertation

Empirical Investigation of Issues for Implementation of Circular Economy in Indian Manufacturing Organizations

Nandlal, Patel Mehulkumar

2024

Overview

The Indian manufacturing sector satisfies most of the societal product demands by a linear production-consumption model. It dominates in global and national economy, utilizes major proportion of virgin material and energy and generates significant waste and environmental contamination, raising sustainability concerns. To address these issues, radical systemic solutions are needed, such as the adoption of a circular economy model. A circular economy (CE) is a production-consumption system that closes material resource loops, promotes higher value of material cycles, and addresses issues such as energy, waste, environment, social equity, and long-term economic growth. In today’s era, competitive business and variable consumer demand need a transformation from a linear economic business model to a circular business model. Hence, Indian manufacturing organizations (IMOs) need a structured approach with radical and innovative solutions to develop and implement CE enabled business models and related circular supply chains to meet everchanging consumer and market demands, ensuring the sustainability of the business.The research investigates the awareness and level of adoption of CE strategies and practices in Indian manufacturing organizations and assesses their inadequacy to get insight in to the major objectives, enablers and issues to CE implementation and perceive CE performance measurement. Four sectors are selected: electronics and material, engineering, manufacturing and production, and process. The sample organizations are diversified, providing a fair assessment of CE enablement in Indian manufacturing organizations. The implementation of CE in the case organization and obtained results represent the conformity to the same. This work began with a literature review; examining status of adoption of CE that includes the major databases available until October 2023, and involving academic and industrial experts in the implementation process.A tactical plan and methodological framework for CE enabled business model (BM) and circular supply chain (CSC) was developed in the second stage of the work. The framework outlines three categories of CE enablers: tactical, technological, and humanoid. It establishes inter-relationships between circular strategies, practices, adoption of R's, cooperation, and coordination in and of the organization through the involvement of stakeholders and circular consumers for the achievement of circular production. The designed material and information flow channels establish the attachment of each and every stage and ensure the recirculation of material to close loops. The development explicates how CE enablement can yield differential advantages to the organization, SC, and business as a whole.In the third stage, a structured questionnaire was developed to gauge the status and readiness of Indian manufacturing organizations to embrace and espouse CE objectives, strategies, and practices. The survey aspects, involving experts, covered two categories: the role of CE enablement and implementation, and CE performance measurement for effective CE enablement in organizations and SC. A pilot study was conducted. A five-point Likert scale was used to design the questionnaire and the final survey had an effective response rate of 21.62 percent. Further, the sectorial analysis examines the variation in the perception of Indian manufacturing organizations across four identified industrial clusters regarding CE enablement issues, using quantitative tools like descriptive statistics, reliability analysis, and ANOVA to test propositions, developed based on literature. The objective of the sectorial analysis is to study the similarities and dissimilarities among different sectors within the manufacturing organizational cluster.The fourth stage of successful CE implementation in organizations and SC involves understanding the dynamics between CE enablers (CEEs), which drive the process. A hybrid methodology using Interpretive Structural Modelling (ISM) for hierarchical model development and fuzzy MICMAC analysis was used to categorize CEEs into driver and dependent categories through the development of contextual relationships among these variables. The investigation demonstrates that CEEs that have a high driving power require maximum attention and carry the most strategic importance while CEEs having high dependence power need the resultant actions. A fuzzy MICMAC analysis provides a useful tool for top management to differentiate between independent and dependent CEEs, focusing on key CEEs for effective CE implementation. This helps the organization in achieving strategic goals. The hierarchical model of CEEs and their categorization endeavor in the area of CE implementation.Further, a case organization was identified to implement CE enabled business model and CSC framework through CEEs to gain a competitive advantage. The top eleven CEEs identified from LR, survey, and sectorial analysis, modeled by ISM and developed contextual relationship through fuzzy MICMAC were compared and found to be of equal priority. CE enabled business model and CSC framework was adopted through the high driving power CEEs which were adopted and implemented in the case organization and dependence CEEs in the form of performance output was achieved. Proper control of these CEEs during CE adoption made implementation more effective. The issues were identified, and suggestions related to CE were imparted and implemented in consultation with top management and stakeholders. The case organization achieved performance output and a competitive advantage in terms of economic, financial, environmental, and social improvements, including improvements in the health of shop floor workers. The results validate the drafted propositions.The scope of the present research is generally not beyond these Indian Manufacturing organizations though the research implications may also have some bearing on other sectors. Some unexplored sectors are important from CE standpoint but are beyond the scope of the present study. This is mainly due to time constraints to undertake the whole set of sectors operating in India.

• Publisher: ProQuest Dissertations & Theses
• Subject: Business models / Circular economy / Competitive advantage / Economic growth / Industrial engineering / Innovations / Manufacturing / Mechanical engineering / Natural resources / Operations research / Small & medium sized enterprises-SME / South Asian Studies
• ISBN: 9798273340572