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Industrial Networks: Purposes and Configurations in the Circular Economy
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Sustainability, Industrial Dynamics & Entrepreneurship.ORCID iD: 0000-0002-3500-2482
2023 (English)Doctoral thesis, comprehensive summary (Other academic)
Abstract [en]

Today, it is common knowledge that mitigation of and adaptation to climate change, biodiversity loss, and pollution require sustainability transitions. An essential sustainability transition, for mitigating and adapting to resource depletion, is the shift from unsustainable to sustainable production and consumption patterns. At the nexus of academic, business, and policy discussions about sustainable resource management is the circular economy concept. Those researching the circular economy advocate that ecosystems in nature should be used as a blueprint for sustainable production and consumption. Ecosystems in nature are complex and dynamic systems which include many diverse and autonomous, yet interrelated and interdependent, parts. Actors will have to search for and establish collaborations with others that control processes that can feed their own or which their own can feed. In other words, actors will depend on a higher degree of relational means, and lower degree of contractual means, when working together.

If companies are meant to change how they create and deliver value in the circular economy by configuring circular supply chains that replicate ecosystems in nature, academia needs to produce knowledge on the matter. One requisite is that researchers find ways to study energy and material flows in complex and dynamic systems. Recent literature has emphasized that actors must make apt changes to their supply chain configurations or develop new supply chain configurations that enable collaboration within and across supply chains. Nevertheless, there remains only a limited amount of literature addressing the subject. Several researchers into the circular supply chain have thus identified this as a research gap and argue that there is an urgent need to direct attention to circular supply chain configurations that enable collaboration within and across supply chains. In particular, there are two areas of major importance. Firstly, how collaboration makes actors more dependent on each other and the consequences of this development for issues such as the agency of actors, conflicts between actors, and relationship governance. Secondly, how configuring circular supply chains within and across industrial boundaries need to consider the distance between actors and the effects of product design on the circular supply chain configuration.

This thesis, which is located at the intersection of industrial dynamics, industrial networks, and supply chain management, suggests the network as a metaphor for depicting the architecture of such complex and dynamic systems. In particular, interrelations and interdependences between diverse and autonomous parts of the network are studied using the industrial network approach. In essence, the economy is viewed as networks of relationships between the actors which control resources and perform activities. By applying the industrial network approach to supply chain management, this thesis outlines an approach for studying how companies configure circular supply chains for cyclical, restorative, and regenerative energy and material flows.

As the state of prior theory was nascent, open-ended inquiries of an exploratory nature were necessary. Accordingly, the research questions were answered using qualitative case studies. The outcome was rich data about unique contexts, which was collected in various ways, such as through interviews, observations, and document analysis. An abductive case study approach, blending inductive and deductive processes, was considered particularly appropriate for studying industrial networks. However, a systematic literature review was also used because parts of the theory behind industrial network configurations in the circular economy are more mature.

This thesis makes three main contributions. Firstly, it identifies three purposes of industrial networks in the circular economy. It is shown that industrial networks enable the agency of actors to produce holistic change in the industrial network. However, since an actor’s view of the industrial network is restricted, the actor depends on other actors’ complementary views in order to be able to produce such change. Secondly, this thesis introduces two conceptual frameworks that contribute to the understanding of how to configure industrial networks that enable collaborations within and across industrial boundaries. Thirdly, this thesis supports the idea that product design affects how to configure industrial networks for the circular economy. It also contributes to the literature by arguing that the relationship between product design and industrial network configuration is bidirectional. Product design is a collaborative process which both shapes the future industrial network and is shaped by the current industrial network.

Abstract [sv]

Idag är det allmänt känt att hållbarhetsomställningar krävs för att mildra och anpassa samhället till klimatförändringar, förlust av biologisk mångfald och föroreningar. En viktig hållbarhetsomställning, för att mildra och anpassa samhället till resursutarmning, är övergången från ohållbara till hållbara produktions- och konsumtionsmönster. I centrum av akademiska, affärsmässiga och politiska diskussioner om hållbar resurshantering är begreppet cirkulär ekonomi. Forskare inom cirkulär ekonomi förespråkar att ekosystem i naturen bör användas som en mall för hållbar produktion och konsumtion. Ekosystem i naturen är komplexa och dynamiska system som omfattar många olika och autonoma, men ändå sammanhängande och ömsesidigt beroende, delar. Aktörer kommer att behöva söka efter och etablera samarbeten med andra som kontrollerar processer som kan mata aktörernas egna eller som deras egna processer kan mata. Med andra ord kommer aktörerna att vara beroende av en högre grad av relationella medel och en lägre grad av kontrakt när de arbetar tillsammans.

Om företag ska förändra hur de skapar och levererar värde i den cirkulära ekonomin genom att konfigurera cirkulära försörjningskedjor som replikerar ekosystem i naturen, krävs att akademin producerar kunskap om saken. En förutsättning är att forskare hittar sätt att studera energi- och materialflöden i komplexa och dynamiska system. Ny litteratur har betonat att aktörer måste göra lämpliga ändringar av hur de konfigurerar försörjningskedjor alternativt utveckla nya konfigurationer som möjliggör samarbete inom och mellan försörjningskedjor. Ändå finns det fortfarande begränsad litteratur om ämnet. Flera forskare, inom cirkulära försörjningskedjor, identifierar därför detta som ett forskningsgap och menar att det är angeläget att rikta uppmärksamheten mot konfigurationer av cirkulära försörjningskedjor som möjliggör samarbete inom och mellan försörjningskedjor. Det finns framför allt två områden av stor betydelse. För det första, hur samverkan gör aktörer mer beroende av varandra och vilka konsekvenser denna utveckling får för frågor som aktörers utrymme att agera, konflikter mellan aktörer samt relationsstyrning. För det andra, hur konfigurering av cirkulära försörjningskedjor inom och över industriella gränser måste ta hänsyn till avståndet mellan aktörer och effekterna av produktdesign på den cirkulära försörjningskedjans konfiguration.

Denna avhandling, som hör hemma i skärningspunkten mellan industriell dynamik, industriella nätverk och supply chain management, föreslår nätverket som en metafor för att beskriva sådana komplexa och dynamiska systemarkitekturer. I synnerhet studeras relationer och ömsesidiga beroenden mellan olika och autonoma delar av nätverket med hjälp av den industriella nätverksansatsen. Därigenom ses ekonomin som nätverk av relationer mellan aktörer som kontrollerar resurser och utför aktiviteter. Genom att tillämpa den industriella nätverksansatsen inom supply chain management lägger denna avhandling fram ett sätt att studera hur företag konfigurerar cirkulära försörjningskedjor för cykliska, återställande och regenerativa energi- och materialflöden.

Eftersom teori på området är outvecklad så var öppna undersökningar av utforskande karaktär nödvändiga. Följaktligen besvarades forskningsfrågorna med hjälp av kvalitativa fallstudier. Av detta kom rik data, om unika sammanhang, som samlades in på olika sätt, till exempel genom intervjuer, observationer och dokumentanalys. En abduktiv fallstudiemetod, som blandade de induktiva och deduktiva processerna, ansågs särskilt lämplig för att studera industriella nätverk. En systematisk litteraturöversikt användes dock också, eftersom delar av teorin bakom industriella nätverkskonfigurationer i den cirkulära ekonomin är mer utvecklad.

Denna avhandling gör tre huvudsakliga bidrag. För det första identifieras tre syften med industriella nätverk i den cirkulära ekonomin. Industriella nätverk gör det möjligt för aktörerna att åstadkomma en holistisk förändring i det industriella nätverket. Men eftersom en aktörs syn på det industriella nätverket är begränsad är aktören beroende av andra aktörers kompletterande perspektiv för att kunna åstadkomma en sådan förändring. För det andra introducerar denna avhandling två konceptuella ramverk som bidrar till förståelsen för hur man konfigurerar industriella nätverk som möjliggör samarbete inom och över industriella gränser. För det tredje stöder denna avhandling tanken att produktdesign påverkar hur industriella nätverk konfigureras för den cirkulära ekonomin. Men avhandlingen bidrar även till litteraturen genom att hävda att förhållandet mellan produktdesign och industriell nätverkskonfiguration är dubbelriktad. Produktdesign är en samarbetsprocess som både formar det framtida industriella nätverket och formas av det nuvarande industriella nätverket.

Place, publisher, year, edition, pages
Stockholm: KTH Royal Institute of Technology, 2023. , p. 158
Series
TRITA-ITM-AVL ; 2023:13
Keywords [en]
Sustainability, Circular Economy, Circular Supply Chain, Supply Chain Management, Industrial Networks
Keywords [sv]
Hållbarhet, Cirkulär ekonomi, Cirkulära försörjningskedjor, Supply chain management, Industriella nätverk
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Industrial Economics and Management
Identifiers
URN: urn:nbn:se:kth:diva-333643ISBN: 978-91-8040-668-0 (print)OAI: oai:DiVA.org:kth-333643DiVA, id: diva2:1786067
Public defence
2023-09-07, F3 / https://kth-se.zoom.us/j/66400243655, Lindstedtsvägen 26, Stockholm, 09:00 (English)
Opponent
Supervisors
Available from: 2023-08-15 Created: 2023-08-07 Last updated: 2023-09-04Bibliographically approved
List of papers
1. Experimental networks for business model innovation: A way for incumbents to navigate sustainability transitions?
Open this publication in new window or tab >>Experimental networks for business model innovation: A way for incumbents to navigate sustainability transitions?
Show others...
2021 (English)In: Technovation, ISSN 0166-4972, E-ISSN 1879-2383, Vol. 108, article id 102330Article in journal (Refereed) Published
Abstract [en]

To navigate sustainability transitions, firms are often prompted to take an active role in business model innovation. Previous research has shown, however, that when attempting to change business models, incumbent firms frequently face challenges concerning the ambiguity of transition pathways. This paper is an inquiry into this intersection between business model innovation and sustainability transitions. Anchored in three case studies of sustainability-driven, pre-commercial projects of emerging technologies, it reveals how groups of organizations collaborate in time-limited, cross-industry networks, to explore potential business models for anticipated, profound, changes in socio-technical systems. Drawing on these findings, the paper introduces the concept of experimental networks and illustrates how experimental networks can facilitate business model innovation in relation to systemic change. By outlining the constituents of the experimental network concept, the paper contributes to theory by uncovering the interplay of interorganizational collaboration and network level business model innovation. In addition, it reveals how experimental networks constitute one way for incumbents to claim agency with respect to emerging sustainability transitions.

Place, publisher, year, edition, pages
Elsevier BV, 2021
Keywords
Business model innovation, Sustainability, Interorganizational collaboration, Emerging technology, Systemic change, Exploration, Industrial network, Project
National Category
Business Administration
Identifiers
urn:nbn:se:kth:diva-303748 (URN)10.1016/j.technovation.2021.102330 (DOI)000701779600005 ()2-s2.0-85120091864 (Scopus ID)
Note

QC 20211103

Available from: 2021-11-03 Created: 2021-11-03 Last updated: 2023-08-07Bibliographically approved
2. Supply network collaborations in a circular economy: A case study of Swedish steel recycling
Open this publication in new window or tab >>Supply network collaborations in a circular economy: A case study of Swedish steel recycling
2022 (English)In: Resources, Conservation and Recycling, ISSN 0921-3449, E-ISSN 1879-0658, Vol. 179, p. 106112-106112, article id 106112Article in journal (Refereed) Published
Abstract [en]

Supply network collaboration has been recognised as a vital enabler in the transition to a circular economy. Even so, the existing literature has directed limited attention to the nature of these relationships and the motivation behind them. Hence, there is a need to understand the actual activities of actors engaged in collaboration to address this knowledge gap. The steel industry presents an interesting example. Given that more than one-third of the world's steel production originates from scrap, its supply is essential to the survival of the steel industry. Based on an explorative case study, this paper investigates collaboration of steel producers, a procurement intermediary and scrap dealers to facilitate steel recycling. These actors deal with the practical challenge of variation in the quantity and quality of steel scrap by engaging in various types of collaboration. This paper seeks to analyse the nature of these collaborations and answer the question of why actors engage in supply network collaboration. The paper identifies a complex web of relationships and outlines differing motives for and against collaboration, with specific focus on three types. While quality control is the main motive in dyadic vertical collaboration between a buyer and a supplier, efficiency is the main motive for both horizontal collaboration between buyers and lateral collaboration amongst all actors in the supply network. Thus, this paper adds to the conventional wisdom of sequential, dyadic, linear and vertical relationships, providing a deeper understanding of the types of supply network collaboration from the underexplored context of steel recycling.

Place, publisher, year, edition, pages
Elsevier BV, 2022
Keywords
Supply chain managementCircular economyOpen-loop supply chainProduct recoverySupply chain collaborationRecycling
National Category
Business Administration
Identifiers
urn:nbn:se:kth:diva-306495 (URN)10.1016/j.resconrec.2021.106112 (DOI)000774321400004 ()2-s2.0-85121278835 (Scopus ID)
Note

QC 20220228

Available from: 2021-12-17 Created: 2021-12-17 Last updated: 2023-08-07Bibliographically approved
3. The relatedness of open- and closed-loop supply chains in the context of the circular economy; Framing a continuum
Open this publication in new window or tab >>The relatedness of open- and closed-loop supply chains in the context of the circular economy; Framing a continuum
2022 (English)In: Cleaner Logistics and Supply Chain, ISSN 2772-3909, Vol. 4, p. 100048-100048, article id 100048Article in journal (Refereed) Published
Abstract [en]

The configuration of closed-loop supply chains (CLSCs) for original equipment manufacturers (OEMs) to recover and remarket products has been discussed as a crucial pathway in the transition towards the circular economy (CE). However, in the context of the CE, circular supply chains (CSCs) have an extended role to recover materials and minimize waste that goes beyond the particular firm’s product recovery and remarketing. Thus, the open-loop supply chains (OLSCs) have an equally important role to play as supply chain configurations where actors other than the OEM engage in product and material recovery. While the literature on CLSC is a mature field, studies that analyze the complementary nature of CLSC and OLSC in addressing the transition to the CE are scant. Based on a systematic literature review (2007–2021), this paper contributes to literature by identifying some of the characteristics of OLSC, providing empirical illustrations, and developing a conceptual framework of the open- and closed-loop supply chain continuum.

Place, publisher, year, edition, pages
Elsevier, 2022
Keywords
Circular economy, Closed-loop supply chain, Recycling, Open-loop supply chain, Product recovery, Systematic literature review
National Category
Other Mechanical Engineering Business Administration
Research subject
Industrial Economics and Management
Identifiers
urn:nbn:se:kth:diva-311369 (URN)10.1016/j.clscn.2022.100048 (DOI)001044647900010 ()2-s2.0-85135078378 (Scopus ID)
Note

QC 20220504

Available from: 2022-04-25 Created: 2022-04-25 Last updated: 2023-09-21Bibliographically approved
4. Product Design Trade-Offs in Circular Supply Chains: A Cross-Industry Case Study
Open this publication in new window or tab >>Product Design Trade-Offs in Circular Supply Chains: A Cross-Industry Case Study
(English)Manuscript (preprint) (Other academic)
Abstract [en]

The transition from linear to circular supply chains is fundamental for any business that intends to partake in the circular economy. To achieve this transition, the business needs to review what activities to perform and how to collaborate with other actors. In this evaluation, circular product design is key. The process outlines how to narrow, slow, and close resource flows and determines most of a product’s total cost and environmental impact. However, the objectives behind narrowing, slowing, and closing resource flows do not necessarily align, which makes trade-offs rudimentary in circular product design. We address this overlooked aspect with a cross-industry case study of SMEs working with circular product design. Our findings include trade-offs between strategies and a comparison of similar and dissimilar circular supply chain implications among the SMEs. The main contribution of this research is this two-step analysis, which addresses the need for common understanding of circular product design in theory and practice. We suggest that future research use and develop the two-step analysis further to enrich the palette of trade-offs in circular product design with even more examples.

Keywords
Supply Chain Management, Product Design, Sustainability, Circular Economy, Closed-Loop Supply Chain, Open-Loop Supply Chain
National Category
Production Engineering, Human Work Science and Ergonomics
Research subject
Industrial Economics and Management
Identifiers
urn:nbn:se:kth:diva-333850 (URN)
Note

QC 20230814

Available from: 2023-08-14 Created: 2023-08-14 Last updated: 2023-08-14Bibliographically approved

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Berlin, Daniel

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