UNDERSTANDING THE ROLE OF PLASTIC RECYCLERS IN PLASTIC WASTE’S CIRCULAR SUPPLY CHAIN GOVERNANCE IN INDONESIA
DOI:
https://doi.org/10.33102/iiecons.v10i1.135Keywords:
plastic waste; recycler; junk shop; circular economy; circular supply chain governance; relational; contractual; relationship history; environmental uncertainty; perceived risk; interdependence; power asymmetry; perceived justice; specific assetAbstract
This study aims to examine the role of plastic recyclers in managing the plastic waste’s circular supply chain governance in Indonesia. The data was gathered through interviews and on-site visits to plastic waste stakeholders five plastic recycling plants in Indonesia. The findings reveal that the plastic waste’s circular supply chain governance shows a combination of approaches, particularly in the relationship between recyclers and junk shops based on seven aspects of relational-contractual analysis. The governance structure of the plastic waste’s circular economy supply chain tends to be relational, considering historical relationships, environmental uncertainties, power imbalances, and fairness perceptions. On the other hand, recycling factories strictly adhere to a contractual governance pattern concerning risk perception. This research provides valuable insights into circular economy governance in a developing economy and offers policy implications for the governance of the plastic circular economy supply chain in Indonesia.
Downloads
References
Bonatto, F., Resende, L.M.M.d., & Pontes, J. (2022). Supply chain governance: a conceptual model. Journal of Business & Industrial Marketing, 37(2), 309-325. https://doi.org/10.1108/JBIM-09-2019-0418
Boström, M., Jönsson, A. M., Lockie, S., Mol, A. P.J., & Oosterveerd, P. (2015). Sustainable and responsible supply chain governance: challenges and opportunities. Journal of Cleaner Production, 107, 1-7. https://doi.org/10.1016/j.jclepro.2014.11.050
Cruz, V. d. J. S. d., & Paulillo, L. F. (2016). Hybrid governance complementary to contract manufacturing: a study case. Gestão & Produção, 23(4), 842-852. https://doi.org/10.1590/0104-530X3363-16
Damanhuri, E., & Padmi, T. (2012). The role of informal collectors of recyclable waste and used goods in Indonesia. In Post-consumer waste recycling and optimal production (pp. 23-44). IntechOpen.
Eckerd, S., & Sweeney, K. (2018). The role of dependence and information sharing on governance decisions regarding conflict. The International Journal of Logistics Management, 29(1), 409-434. https://doi.org/10.1108/IJLM-12-2016-0301
Esbensen, K. H., & Velis, C. (2016). Transition to circular economy requires reliable statistical quantification and control of uncertainty and variability in waste. Waste Management & Research, 34(12), 1197-1200. https://doi.org/10.1177%2F0734242X16680911
Fatimah, Y. A., Govindan, K., Murniningsih, R., & Setiawan, A. (2020). Industry 4.0 based sustainable circular economy approach for smart waste management system to achieve sustainable development goals: A case study of Indonesia. Journal of Cleaner Production, 269, 122263. https://doi.org/10.1016/j.jclepro.2020.122263
Geissdoerfer, M., Savaget, P., Bocken, N. M.P., & Hultink, E. J. (2017). The Circular Economy – A new sustainability paradigm? Journal of Cleaner Production, 143, 757-768. https://doi.org/10.1016/j.jclepro.2016.12.048
Ghisellini, P., Cialani, C., & Ulgiati, S. (2016). A review on circular economy: the expected transition to a balanced interplay of environmental and economic systems. Journal of Cleaner Production, 114, 11-32. https://doi.org/10.1016/j.jclepro.2015.09.007
Govindan, K., Shankar, K. M., & Kannan, D. (2020). Achieving sustainable development goals through identifying and analyzing barriers to industrial sharing economy: A framework development. International Journal of Production Economics, 227, 107575. https://doi.org/10.1016/j.ijpe.2019.107575
Heide, J. B. (1994). Interorganizational governance in marketing channels. Journal of marketing, 58(1), 71-85. https://doi.org/10.1177%2F002224299405800106
Joshi, A. W., & Stump, R. L. (1999). The contingent effect of specific asset investments on joint action in manufacturer-supplier relationships: An empirical test of the moderating role of reciprocal asset investments, uncertainty, and trust. Journal of the Academy of Marketing Science, 27. https://doi.org/10.1177/0092070399273001
Kumar, N., Scheer, L. K., & Steenkamp, J.-B. E. (1995). The effects of supplier fairness on vulnerable resellers. Journal of marketing research, 32(1), 54-65. https://doi.org/10.1177%2F002224379503200107
Liu, Y., Luo, Y., Huang, Y., & Yang, Q. (2017). A diagnostic model of private control and collective control in buyer-supplier relationships. Industrial Marketing Management, 63, 116-128. http://dx.doi.org/10.1016/j.indmarman.2016.11.003
Merli, R., Preziosi, M., & Acampora, A. (2018). How do scholars approach the circular economy? A systematic literature review. Journal of Cleaner Production, 178, 703-722. https://doi.org/10.1016/j.jclepro.2017.12.112
Murray, A., Skene, K., & Haynes, K. (2017). The Circular Economy: An Interdisciplinary Exploration of the Concept and Application in a Global Context. Journal of Business Ethics, 140, 369-380. https://doi.org/10.1007/s10551-015-2693-2
Pilbeam, C., Alvarez, G., & Wilson, H. (2012). The governance of supply networks: a systematic literature review. Supply Chain Management, 17(4), 358-376. https://doi.org/10.1108/13598541211246512
Pomponi, F., & Moncaster, A. (2017). Circular economy for the built environment: A research framework. Journal of Cleaner Production, 143, 710-718. http://dx.doi.org/10.1016/j.jclepro.2016.12.055
Schultz, F. C., Everding, S., & Pies, I. (2021). Circular supply chain governance: A qualitative-empirical study of the European polyurethane industry to facilitate functional circular supply chain management. Journal of Cleaner Production, 317, 128445. https://doi.org/10.1016/j.jclepro.2021.128445
Ünal, E., Urbinati, A., & Chiaroni, D. (2019). Managerial practices for designing circular economy business models: The case of an Italian SME in the office supply industry. Journal of Manufacturing Technology Management, 30(3), 561-589. https://doi.org/10.1108/JMTM-02-2018-0061
Winans, K., Kendall, A., & Deng, H. (2017). The history and current applications of the circular economy concept. Renewable and Sustainable Energy Reviews, 68(1), 825-833. https://doi.org/10.1016/j.rser.2016.09.123
Zhang, X., & Aramyan, L. (2009). A conceptual framework for supply chain governance: An application to agri‐food chains in China. China Agricultural Economic Review, 1(2), 136-154. https://doi.org/10.1108/17561370910927408