Integrating closed-loop principles in supply chains in emerging markets: The case of the Russian waste management industry

European Management Review. 2023. Vol. 20. No. 2. P. 260–272.

Aray Y., Veselova A., Knatko D., Levchenko A.

Integration of closed loop (CL) principles into supply chain management plays an important role for business and society. The CL supply chain can serve as a good example of an environmentally friendly and sustainable solution since it assumes reduction of waste and its further usage in production. Hence, the notion of CL supply chain is premised on the “design, control, and operation of a system to maximize value creation over the entire life cycle of a product with dynamic recovery of value from different types and volumes of returns over time” (Guide and Wassenhove, 2009). In practice, a successful integration of CL principles depends on many contextual factors. The goal of this study is to identify the factors that support and discourage CL supply chain innovations in emerging markets. The study employs the institutional theory as a theoretical background and an in-depth case analysis of a Russian waste management company as empirical evidence. The study shows that cooperation with an experienced and legitimate partner might become a driver of CL initiative introduction; while a low level of knowledge and trust might become a serious impediment, so investment in knowledge dissemination and reputation building are crucial in emerging market.

Keywords: sustainability, waste management, Circular economy, institutional voids, closed loop supply chain, emerging economy

Publication based on the results of: Transformation of Business Models, Strategies and Structures of International Firms in “New” Global Economy: preconditions, motives and specificity of managing (2022)