Explaining the Model of Factors Affecting the Implementation of Green Supply Chain Based on the Circular Economy Approach

Document Type : Original Article

Authors

University of Guilan

Abstract

Introduction
Within the paradigm of the Circular Economy (CE), Green Supply Chain Management (GSCM) serves as a critical mechanism for optimizing resource utilization and addressing the environmental externalities inherent in traditional consumption patterns. Establishing a robust green supply chain—coupled with continuous performance monitoring—has become a prerequisite for organizational survival in today’s hyper-competitive global landscape. To effectively integrate GSCM with circular economy principles, organizations must achieve a strategic equilibrium between operational efficiency and environmental execution. The rapid economic and population growth witnessed in recent decades—driven by technological advancements, globalization, and urbanization—has led to unprecedented resource extraction and a surge in energy demand. Neglecting the environmental consequences of such expansion incurs significant remedial costs to mitigate ecological damage and waste. However, the escalating costs of environmental degradation, coupled with heightened public awareness and corporate concerns regarding quality of life, are compelling organizations to re-evaluate their growth strategies. Consequently, firms are increasingly adopting social and environmental performance solutions to ensure long-term sustainability. To enhance environmental outcomes, companies may implement cleaner production policies; conversely, to bolster operational performance, they often prioritize environmental innovations such as eco-design and green packaging. The successful application of GSCM within a circular framework is contingent upon unwavering support from top management and a firm commitment from the workforce. This study demonstrates that implementing a CE-based green supply chain fosters cleaner industries by reducing waste and pollution, enhancing resource efficiency (including natural, raw, and human capital), and promoting cross-sector collaboration. Ultimately, adopting GSCM is a strategic imperative that aligns economic profitability with environmental stewardship, requiring coordinated efforts from all stakeholders to secure business sustainability in a technologically advancing world.
 
Methodology
This study employs a qualitative research design, specifically adopting a meta-synthesis approach. Meta-synthesis goes beyond a mere literature review by integrating and synthesizing qualitative findings through an interpretive lens. As an emerging methodology in qualitative research, it involves the systematic interpretation of existing studies to offer a novel, comprehensive explanation of the phenomenon under investigation. The sample for this meta-synthesis comprises selected qualitative studies, purposefully screened based on their relevance to the research question—specifically focusing on the criteria for Green Supply Chain Management (GSCM) within the framework of a circular economy.
 
Findings
Over the past two decades, environmental protection and sustainability have emerged as critical imperatives across diverse industrial sectors. Consequently, governments and corporations worldwide have increasingly recognized the necessity of greening their supply chains. This transition is underscored by a fundamental shift in market dynamics, where competition is no longer confined to individual firms, but rather extends to the supply chains in which they operate. The growing consumer demand for eco-friendly products—spanning the entire flow of goods from raw material extraction and information exchange to final delivery—has necessitated a paradigm shift toward integrated supply chain management (SCM). This contemporary approach encompasses the entire product life cycle, from conceptual design to end-of-life recycling. Investing in the environmental performance of the supply chain offers substantial strategic advantages, including energy efficiency, pollution mitigation, waste reduction, enhanced value creation, and improved productivity across manufacturing and service sectors. Sustainable resource management is not merely a technical challenge of waste mitigation; it is a multifaceted issue that integrates economic, political, social, and ethical dimensions. Systems thinking—prioritizing the optimization of entire processes over individual components—has become central to this discourse and forms the core philosophy of the ‘circular economy’ (CE). Driven by market volatility, product diversification, shifting geopolitical landscapes, climate change, and resource scarcity, global economic models are moving beyond the traditional ‘linear’ paradigm (take-make-waste). Instead, there is a systemic transition toward a circular framework, where the ideal state is defined by the reduction, reuse, and recycling of materials within the production loop. Unlike the linear model, the circular economy emphasizes environmental stewardship by maximizing the utilization of renewable and recyclable resources while minimizing reliance on virgin raw materials and energy. Achieving this requires fundamental restructuring across the value chain, ranging from eco-design and production processes to the development of innovative business models. Ultimately, the circular economy redefines waste as a valuable resource, thereby extending product lifespans and securing natural capital for future generations.
 
Discussion and Conclusion
This research aims to integrate Green Supply Chain Management (GSCM) with the Circular Economy (CE) by proposing a novel conceptual framework that encompasses economic, environmental, marketing, organizational, operational, and logistical functions. Addressing the current gap in sustainability literature, this study explores the synergistic relationship between GSCM and CE paradigms. By employing a meta-synthesis approach to review existing literature and external proposals, a comprehensive CE-based green supply chain framework was developed.
The proposed framework is structured as a four-dimensional hierarchy comprising organizational, operational, logistical, and marketing factors:

Organizational Factors: These include two primary subcategories: outsourcing and inter-organizational collaboration.
Operational Factors: These are subdivided into technological advancement and performance optimization.
Logistical Factors: These encompass three critical areas: knowledge optimization, transportation efficiency, and collaboration optimization.
Marketing Indicators: These focus on two key outcomes: financial performance and market share.

The implementation of this framework facilitates the development of cleaner industries. From a ‘clean production’ perspective, this study demonstrates that a CE-based green supply chain significantly reduces waste and pollution while fostering resource efficiency—pertaining to natural resources, raw materials, information, and human capital. Ultimately, this integrated approach promotes a balanced trajectory for economic, social, and environmental development.

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