Francesca Gennari – Department of Economics and Management, University of Brescia, via S. Faustino 74/b, 25122 Brescia, Italy
7th International Scientific-Business Conference – LIMEN 2021 – Leadership, Innovation, Management and Economics: Integrated Politics of Research – SELECTED PAPERS, Online/virtual, December 16, 2021, published by the Association of Economists and Managers of the Balkans, Belgrade; Printed by: SKRIPTA International, Belgrade, ISBN 978-86-80194-53-0, ISSN 2683-6149, DOI: https://doi.org/10.31410/LIMEN.S.P.2021
Keywords:
Small and medium
enterprises (SMEs);
Circular economy;
Business model;
Framework;
Transition management
Abstract
Small and medium enterprises (SMEs) contribute significantly to the European GDP and have a pivotal role in the ecological transition from linear to a circular economy (CE). SMEs, however, have more trouble than bigger firms making their business models circular. This article analyses the key factors that SMEs should manage for a strategic transition towards CE. Based on qualitative content analysis on the existing literature about CE in SMEs, we identify governance, relations with stakeholders and innovation as CE key pillars. It is also found that SMEs’ attitude toward them changes during the transition process. The article contributes to filling a gap in the research about SMEs’ transition towards circularity and provides a conceptual framework for SMEs’ self-assessment in the transition path.

Download file
LIMEN Conference
Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-Non-Commercial 4.0 License (https://creativecommons.org/licenses/by-nc/4.0/) which permits non-commercial use, reproduction and distribution of the work without further permission.

References
Bassi, F., & Dias, J. G. (2019). The use of circular economy practices in SMEs across the EU. Resources, Conservation & Recycling, 146, 523-533. https://doi.org/10.1016/j.resconrec.2019.03.019
Bocken, N.M.P., de Pauw, I., Bakker, C., & van der Grinten, B. (2016). Product design and business model strategies for a circular economy. Journal of Industrial and Production Engineering, 33, 308–320. https://doi.org/10.1080/21681015.2016.1172124
Brendzel-Skowera, K. (2021). Circular Economy Business Models in the SME Sector. Sustainability, 13, 7059. https://doi.org.10.3390/su13137059
Chen, L., P. Hung, & Ma, H. (2020). Integrating circular business models and development tools in the circular economy transition process: A firm-level framework. Business Strategy and the Environment, 29, 1887-1898. https://doi.org/10.1002/bse.2477
El Bilali, H. (2020). Transition heuristic frameworks in research on agro-food sustainability transitions. Environment, Development and Sustainability, 22, 1693–1728. https://doi.org/10.1007/ s10668-018-0290-0
Ellen MacArthur Foundation (EMF) (2013). Towards the Circular Economy. https://www.ellenmacarthurfoundation.org/assets/downloads/publications/Ellen-MacArthur-Foundation-Towards-the-Circular-Economy-vol.1.pdf. Accessed on Aug. 2, 2021.
European Commission (2015). Closing the loop – An EU action plan for the Circular Economy COM/2015/0614 final. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:52015DC0614. Accessed on Nov. 5, 2021
Geissdoerfer, M., P. Savaget, N. M., Bocken, P., & Hultink, E. J. (2017). The circular economy – a new sustainability paradigm?. Journal of Cleaner Production, 143, 757-768. https://doi. org/10.1016/j.jclepro.2016.12.048
Gennari, F., & Cassano, R. (2020). Circular Economy and Strategic Risk. Symphonya, 1, 136-148. http://dx.doi.org/10.4468/2020.1.11gennari.cassano
Girotra, K., & Netessine, S. (2011). How to build risk into your business model? Smart companies design their innovations around managing risks. Harvard Business Review, 89(5), 100-105.
Holzer, D., Rauter R., Fleiß, E., & Stern, T. (2021). Mind the gap: Towards a systematic circular economy encouragement of small and medium-sized companies. Journal of Cleaner Production 298(1), 126696.https://doi.org/10.1016/j.jclepro.2021.126696
Hoppe, T., Kuokkanen, A., Mikkilä, M., Kahiluoto, H., Kuisma, M., Arentsen, M., & Linnanen, L. (2016). System merits or failures? Policies for transition to sustainable P and N systems in The Netherlands and Finland. Sustainability, 8(5), 463. https://doi.org/10.3390/su8050463
Hubbard, G. (2009). Measuring organizational performance: Beyond the triple bottom line. Business Strategy and the Environment, 18, 177-191. https://doi.org/10.1002/bse.564
Jabbour, C. J. C. (2010). Non-linear pathways of corporate environmental management: A survey of ISO 14001-certified companies in Brazil. Journal of Cleaner Production, 18, 1222–1225. https://doi.org 10.1016/j.jclepro.2010.03.012
Jenkins, H. M. (2004). A critique of conventional CSR theory: An SME perspective. Journal of General Management, 29(4), 37–57. https://doi.org/10.1177/030630700402900403
Kirchherr, J., Piscicelli, L., Bour, R., Kostense-Smit, E., Muller, J., Huibrechtse-Truijens, A., & Hekkert, M. (2018). M. Barriers to the Circular Economy: Evidence From the European Union (EU), Ecological Economics, 150, 264-272. https://doi.org/10.1016/j.ecolecon.2018.04.028
Klewitz, J., & Hansen, E. G. (2011). Sustainability-oriented innovation in SMEs: A systematic literature review of existing practices and actors involved. Paper presented at the XXII International Society for Professional Innovation Management (ISPIM) Conference, Hamburg, Germany, 12-15 June 2011.
Korhonen, J., Honkasalo, A., & Seppälä, J. (2018). Circular Economy: The Concept and its Limitations. Ecological Economics, 143, 37–46. https://doi.org/10.1016/j.ecolecon.2017.06.041
Loorbach, D. (Ed.). (2007). Transition Management: new Mode of Governance for Sustainable Development, Utrecht: International Books.
Matten, D., & Moon, J. (2004). A conceptual framework for understanding CSR. In A. Habisch, J. Jonker, M. Wagner, & R. Schmidpeter (Eds.), Corporate social responsibility across Europe (pp. 335–356). Berlin: Springer.
Mendoza J. M. F., Sharmina, M., Gallego-Schmid, A., Heyes, G., & Azapagic, A. (2017). Integrating back casting and eco-design for the circular economy: the BECE framework. Journal of Industrial Ecology, 21(3), 526-544. https://doi.org/10.1111/jiec.12590
Munn, Z., Stern, C., Aromataris, E., Lockwood, C., & Jordan, Z. (2018). What kind of systematic review should I conduct? A proposed typology and guidance for systematic reviewers in the medical and health sciences. BMC Medical Research Methodology, 18(1), 1–9. https://doi. org/10.1186/s12874-017-0468-4
Noci, G., & Verganti, R. (1999). Managing ‘green’ product innovation in small firms. R&D Management, 29, 3-15. https://doi.org/10.1111/1467-9310.00112
Ormazabal, M., Sarriegi, J. M., Barkemeyer, R., Viles, E., & McAnulla, F. (2015). Evolutionary pathways of environmental management in UK companies. Corporate Social Responsibility and Environmental Management, 22, 169-181. https://doi.org/10.1002/csr.1341
Ormazabal, M., Prieto, V., Sandoval, Puga-Leal, R., & Jaca, C. (2018). Circular economy in Spanish SMEs: challenges and opportunities. Journal of Cleaner Production, 185, 157–167. https://doi. org/10.1016/j.jclepro.2018.03.031
Rizos, V., Behrens, A., Van der Gaast, W., Hofman, E., Ioannou, A., Kafyeke, T., Flamos, A., Rinaldi, R., Papadelis, S., Hirschnitz-Garbers, M., & Topi, C. (2016). Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers. Sustainability, 8(11), 1212. https://doi.org/10.3390/su8111212
Russo, A., & Tencati, A. (2009). A. Formal vs. informal CSR strategies: Evidence from Italian micro, small, medium-sized, and large Firms. Journal of Business Ethics, 85, 339–353. https:// doi.org/10.1007/s10551-008-9736-x
Saidani, M., Yannou, B., Leroy, Y., & Cluzel, F. (2017). How to Assess Product Performance in the Circular Economy? Proposed Requirements for the Design of a Circularity Measurement Framework. Recycling, 2(1), 6. https://doi.org/10.3390/recycling2010006
Sargeant, J. M., Rajic, A., Read, S., & Ohlsson, A. (2006). The process of systematic review and its application in agri-food public-health. Preventive Veterinary Medicine, 75(3–4): 141–151. https://doi.org/10.1016/j.prevetmed.2006.03.002
Siegel, R., Antony, J., Garza-Reyes, J. A., Cherrafi, A., & Lameijer, B. (2019). Integrated green lean approach and sustainability for SMEs: From literature review to a conceptual framework. Journal of Cleaner Production, 240, 118205. https://doi.org/10.1016/j.jclepro.2019.118205
Tura, N., Hanski, J., Ahola, T., Ståhle, M., Piiparinen, S., & Valkokari, P. (2019). Unlocking circular business: A framework of barriers and drivers. Journal of Cleaner Production, 212(1), 90-98. https://doi.org/10.1016/j.jclepro.2018.11.202
Van Bakel, J., Loorbach, D., Whiteman, G., & Rotmans, J. (2009). Business Strategies for Transitions Towards Sustainable Systems. Business Strategy and the Environment, 19(2), 133-146. https://doi.org/10.1002/bse.645
Yadow, N., Gupta, K., Rani, L., & Rawat, D. (2018). Drivers of Sustainability Practices and SMEs: A Systematic Literature Review. European Journal of Sustainable Development, 7(4), 531- 544. https://doi.org/10.14207/ejsd.2018.v7n4p531