Circular economy adoption in the upstream agri-food supply chain: Understanding the implications of the two theoretical lenses

Niken Kusumowardani, Benny Tjahjono, Cindy Rianti Priadi

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

This paper investigates the adoption of Circular Economy (CE) in the upstream agri-food supply chain, employing a qualitative multiple case study research. The findings suggest that the CE emerges in the upstream agri-food supply chain and the early stage of development. In particular, these include (1) the elimination of pollution and waste start to be implemented due to the realization of cost-saving initiatives, (2) the need for collaboration in the supply chain and with external stakeholders, (3) technology adoption, in particular digital technology, is beneficial to reduce asymmetric information, and (4) social orientation in the form of diverting crops to secondary markets, donations, and involvement of the local community. Some of the advantages from exploiting interfirm collaboration include the creation of adding value in securing raw materials and acquiring knowledge through asset specificity. Uncertainty, due to the absence of a contract with the customers that can protect the growers, influences ineffective waste elimination. This paper contributes to the literature on CE in the upstream agri-food supply chain. Future research is needed to investigate the CE involving downstream agri-food supply chain. The practical implication for the upstream supply chain actors is in terms of making the supply chain more circular.

Original languageEnglish
Title of host publicationProceedings of the 11th Annual International Conference on Industrial Engineering and Operations Management, 2021
PublisherIEOM Society
Pages5051-5060
Number of pages10
ISBN (Print)9781792361241
Publication statusPublished - 2021
Event11th Annual International Conference on Industrial Engineering and Operations Management, IEOM 2021 - Virtual, Online
Duration: 7 Mar 202111 Mar 2021

Publication series

NameProceedings of the International Conference on Industrial Engineering and Operations Management
ISSN (Electronic)2169-8767

Conference

Conference11th Annual International Conference on Industrial Engineering and Operations Management, IEOM 2021
CityVirtual, Online
Period7/03/2111/03/21

Keywords

  • Agri-food
  • Circular Economy
  • Natural resource-based view
  • Transaction cost economics
  • Upstream supply chain

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