Aligning the ‘right people’ for a circular value chain

Abstract

Electrical and electronic devices are a significant focus in resource sustainability due to increasing demand, resource usage, and waste challenges. Among these, consumer electronics are known for rapid innovation, short product life cycles, and being a part of an industry with many players, making them ideal for applying circularity principles to promote sustainability. However, adopting circular practices requires systemic change and collaboration from diverse stakeholders, necessitating a value chain perspective. Resources for collaborative efforts in the consumer electronics industry, adopting a value chain and circular economy perspective, are limited. Thus, there's a need for new tools and methods to aid organizations in establishing circular value chains through collaboration.

The main goal of this project is to help organizations in the Dutch consumer electronics industry set up an aligned value chain based on Circular Economy principles.A literature review first explored the current state of circular economy adoption, alignment dimensions, and barriers/drivers in the industry. The literature revealed that alignment dimensions are linked to specific barrier/driver categories, that at the same time are linked to the organizational boundaries. Then, semi-structured interviews with representatives from the context were conducted. The relevance of organizational roles within value chains, circular economy and environmental impact awareness, and context-specific drivers and barriers, emerged from them. Collaboration emerged as crucial, necessitating shared responsibility, the use of success stories to attract partners, and clear partner selection criteria.

These insights informed the development of the Circular Value Chain (CVC) method, designed to assist Original Equipment Manufacturers (OEM) in establishing circular value chains for consumer electronic products. CVC is a seven-step iterative process that considers design organizations and OEMs as initiators of the value chain. It begins with a self-evaluation, followed by drafting an initial Product-Service System proposition, to then envision an ideal circular value chain. It is then followed by assessing and selecting suitable partners, and aligning them for an effective collaboration. Various tools were designed and incorporated in the method in the form of circular value chain archetypes, an assessment card and spider diagram, and a table of selection guidelines.Overall, CVC adopts an organizational approach, involving different teams guided by an expert strategic designer.

This project holds practical and academic significance by providing insights into aligning partners within circular collaborations using a value chain perspective and offering a theoretical framework for future research. The designed method and tools bridge existing research implementing a value chain perspective, enhancing their industry applicability and the relevance from a circularity perspective. The included tools focus on assessing partners based on organizational roles and facilitates informed decision-making. Collaboration within value chains is vital for advancing the circular economy, and the CVC method supports this through a value chain perspective, role definition, and selection of the ‘right people’. While testing shows high potential, further refinement is needed for practicality and information inclusion. In sum, the design outcome offers an initial version of a method that should be further explored and iterated on.