Green supply chain management and the circular economy :  Reviewing theory for advancement of both fields

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Abstract

Purpose

Green supply chain management (GSCM) and the circular economy (CE) overlap but also differ. The purpose of this paper is to clarify linkages between these two concepts. It identifies mutual theory applications used to study GSCM and CE.

Design/methodology/approach

A systematic literature review is conducted to identify theories from GSCM and CE studies. A critical analysis explores the theories that can provide mutual applications between GSCM and CE fields. Propositions are developed.

Findings

In all, 12 theories are applied in both GSCM and CE studies. Several theories are only applied in GSCM studies, but can help to advance CE study. These theories include complexity, transaction cost economics, agency, and information theories. Each of the eight theories only applied to CE can potentially advance GSCM study.

Research limitations/implications

The findings contribute to further theory development for both GSCM and CE study. A methodological review can advance theoretical development and cross-pollination in both fields.

Originality/value

This work is the first study to explicitly explore linkages of GSCM and CE from a theoretical perspective.

Related collections

Most cited references 130

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Firm Resources and Sustained Competitive Advantage

Jay Barney (1991)

Understanding sources of sustained competitive advantage has become a major area of research in strategic management. Building on the assumptions that strategic resources are heterogeneously distributed acrossfirms and that these differences are stable over time, this article examines the link betweenfirm resources and sustained competitive advantage. Four empirical indicators of the potential of firm resources to generate sustained competitive advantage-value, rareness, imitability, and substitutability-are discussed. The model is applied by analyzing the potential of severalfirm resourcesfor generating sustained competitive advantages. The article concludes by examining implications of this firm resource model of sustained competitive advantage for other business disciplines.