production and operations management
Morteza Saeidi; Mostafa Ebrahimpour Azbari; MohammadRahim Ramazanian
Abstract
The purpose of this article is to design a model for improving the sustainable performance of small and medium food companies in Guilan Province. The aim is to provide managers and decision-makers with insights into the factors, challenges, and consequences associated with enhancing the sustainable performance ...
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The purpose of this article is to design a model for improving the sustainable performance of small and medium food companies in Guilan Province. The aim is to provide managers and decision-makers with insights into the factors, challenges, and consequences associated with enhancing the sustainable performance of these companies in the current business environment. The article falls under the category of applied research in terms of its purpose, exploratory-descriptive research in nature, and field studies based on data collection. It is classified as qualitative research. The Grounded Theory method was employed to create a paradigm model, progressing through three stages of open, axial, and selective coding. The results of data analysis using Grounded Theory led to the identification of 13 main floors, 29 main categories, and 248 concepts. The paradigm model, developed through theoretical coding, encompasses six main classes: pivotal phenomenon (sustainable performance improvement), causal conditions (organizational survival, social and environmental obligation, gaining competitive advantage), contextual conditions (environmental factors, organizational factors), interfering conditions (environmental factors, organizational factors), and strategies (macro level, organizational level). Finally, the economic, social, and environmental consequences of achieving sustainable performance improvement were derived through the implementation of these strategies.
Introduction
The increasing societal focus on sustainability necessitates attention to improving sustainable performance in small and medium-sized companies. Today, achieving a competitive edge and attracting customers goes beyond operational or financial superiority. In the contemporary business landscape, companies are expected to demonstrate responsibility and consider future generations in their activities. SMEs play a pivotal role in the industrial growth of developing economies globally. Enhancing communication and information flow in small and medium-sized companies can lead to more efficient processes and cost reduction. To thrive in the current business environment, SMEs must adopt emerging technologies to improve their sustainable performance. Industry 4.0 and the circular economy, which involve the use of advanced technologies like artificial intelligence and the Internet of Things, can be instrumental in achieving sustainable performance in these companies. The synergy between Industry 4.0 technologies and circular economy methods positively contributes to enhancing sustainable performance. Given that small and medium industries are significant drivers of economic growth in regions like Guilan province, improving the sustainable performance of companies in this sector can have a substantial impact on preserving and maintaining environmental aspects. With the rapid growth of technology and the advancement of Industry 4.0, SMEs are recognized as vital economic foundations contributing to the development and economic growth of societies. It is crucial to investigate and conduct research in the field of Industry 4.0 and the circular economy to improve the sustainable performance of small and medium-sized companies. A conscious analysis of the benefits and challenges of Industry 4.0 on SMEs allows for a better understanding of the needs and opportunities within this sector. Examining the effectiveness and utilization of new technologies in the processes and organizational structures of small and medium companies can lead to increased efficiency, cost reduction, improved quality, enhanced decision-making processes, and expanded market presence.
Literature Review
Performance, in a broad sense, can be defined in accordance with the concept of quality and an organization's ability to achieve internal and external goals. It is important to note that performance encompasses multiple dimensions. Sustainability, on the other hand, is a multidimensional concept that presents a significant challenge in our time. It involves the understanding and management of economic, social, and environmental performance simultaneously. Researchers argue that if the current population and economic growth rates persist, the utilization of the planet's natural resources will surpass its capacity. This issue gives rise to environmental protection concerns, which are addressed under the umbrella of sustainable development. Sustainable development is defined as development that meets the needs of the present without compromising the ability of future generations to meet their own needs. In a broader sense, a sustainable development strategy entails creating harmony among humans and between humans and nature. It implies that sustainability requires a societal approach that manages the environmental perspective alongside the economic perspective in the progress of development and performance improvement. In the present era, there is an expectation from customers and members of society for companies and organizations to be responsible and consider future generations in their activities and operations. Prioritizing the future generation in activities signifies a positive step towards sustainable performance and demonstrates the organization's commitment to a sustainable global economy. While the concept of sustainability is easily understood, operationalizing and concretely expressing it poses challenges. Decision-makers in industries need to evaluate and review their operations considering both internal and external effects. Optimal decisions can only be made when the social, economic, and environmental consequences are taken into account.
Methodology
The Research falls under the category of applied research in terms of its purpose, exploratory-descriptive research in nature, and field studies based on data collection. Grounded theory, a qualitative research approach, is particularly well-suited for exploratory research seeking to theorize or identify patterns. It employs open, axial, and selective coding methods for data analysis. This approach, introduced by Strauss and Corbin in 1990, is based on the three-stage coding process of open, axial, and selective (or theoretical) coding. In this regard, it utilizes the logical paradigm or diagrammatic representation of the theory created. Research based on the grounded theory approach, employing a systematic strategy, culminates in the development of hypotheses and statements that may specify the relationships between classes in the axial coding paradigm.
Discussion and Results
The central category identified is Sustainable Performance Improvement. Two dimensions associated with this central category are Industry 4.0 and the circular economy. The most crucial factors influencing sustainable performance improvement are categorized into three groups: organizational survival (including profitability and maintaining market share), social and environmental requirements (such as attracting public support, considering future generations, and managing limited resources), and gaining competitive advantage (encompassing both temporary and sustainable competitive advantages). These factors contributing to sustainable performance improvement are further classified into two categories: environmental factors and organizational factors. Environmental factors involve challenges such as environmental instability, legal factors, and political factors, while organizational factors encompass financial and cost considerations, along with human resources. Strategies for achieving desirable outcomes are outlined at both the macro level (involving government and industrial estate company activities related to consortium formation, culture, and education) and the organizational level. Small and medium-sized food industry companies are encouraged to pursue innovation, creativity, value chain knowledge, and professional structure to create favorable benefits for themselves. The final segment of the sustainable performance improvement model outlines economic, social, and environmental consequences. Key consequences at the economic level include company development, sustainable profitability, and sustainable productivity. At the social level, consequences encompass the welfare of workers and the social responsibility of the organization. The most critical consequence at the environmental level is the achievement of a sustainable environment.
Conclusion
To design a model for enhancing the sustainable performance of small and medium-sized companies, the grounded theory methodology with the systematic approach of Strauss and Corbin was employed. This involved conducting interviews with experts to gather the necessary conceptual codes. Following the systematic approach, data analysis utilized three stages: open coding, axial coding, and selective coding. The design of the model adhered to the paradigm model of this approach, incorporating six dimensions: the central category, causal conditions, contextual conditions, intervening conditions, strategies, and consequences.
supply chain management
Mehrdad kiani; davood andalib ardakani; Habib Zare Ahmadabadi; Seid Heydar Mirfakhraddini
Abstract
Circular economy and Industry 4.0 are concepts that have garnered significant attention from businesses and universities in recent years. They are currently being promoted by many governments worldwide. The synergy between these two concepts offers the potential to move towards a more sustainable society ...
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Circular economy and Industry 4.0 are concepts that have garnered significant attention from businesses and universities in recent years. They are currently being promoted by many governments worldwide. The synergy between these two concepts offers the potential to move towards a more sustainable society and address the environmental and economic challenges related to managing organizational operations. This research aims to analyze the factors enabling the implementation of circular economy and Industry 4.0 in the supply chain of Yazd glass factories. In the initial phase of the research, a review of various articles was conducted using the meta-synthesis method to identify and categorize relevant enablers. This process resulted in the identification of 15 enablers categorized into four dimensions: economic, human resources, organizational management, and infrastructure. In the subsequent step, the Fuzzy DEMATEL technique was employed to examine the cause-and-effect relationships. The findings indicate that, within the economic dimension, the most influential enablers are "budget allocation for the implementation of circular economy and Industry 4.0" and "stimulation of demand for circular products." In the human resources dimension, "training and development of employees" and "organizational culture" play crucial roles. In the organizational-management dimension, "support and commitment of senior management" and "cooperation and networking with supply chain partners (industrial coexistence)" are highly significant. Lastly, within the infrastructure dimension, "development of information technology standards and infrastructures" and "security and protection of intellectual property rights" are considered the most effective enablers for the implementation of circular economy and Industry 4.0 in the Yazd glass factories. The results indicate that the Ardakan glass factories of Yazd should prioritize attention to economic and infrastructural enablers when implementing circular economy and Industry 4.0.
Introduction
The concept of the circular economy can be regarded as a solution to reduce production costs within a sustainable supply chain. In this context, the integration of cyber-physical systems, big data, data mining, data analytics, the Internet of Things, and novel business models can offer significant opportunities for the creation of sustainable industrial value, value capture, and the promotion of the circular economy (Antikainen et al., 2018). Industry 4.0, often referred to as the future of supply chains, can have numerous implications for sustainability, including the optimal utilization of resources and technology (Quezada et al., 2017). Based on the sustainability axis, the concept of Industry 4.0 aids industrial managers in encompassing not only environmental protection and control initiatives but also aspects of process safety, such as resource efficiency, human resource and societal well-being, and the development of smarter and more flexible supply chain processes (Luthra & Mangla, 2018). Numerous studies have explored the factors that impact the implementation of circular economy and Industry 4.0, and these factors have been broadly classified into categories such as barriers, challenges, drivers, and enablers (Fedotkina et al., 2019). Identifying the enablers that are effective in implementation is a crucial step in enhancing the performance of a circular and intelligent supply chain. Until these enablers are identified, it is impossible to determine their relative importance. Following their identification, industry practitioners and policymakers can develop appropriate strategies for their implementation. As such, this current research aims to identify, categorize, and analyze the effective enablers for implementing circular economy and Industry 4.0 at the Ardakan Glass Factory in Yazd, which is the largest glass factory in West Asia. To achieve this, both a qualitative method for enabler identification and the technical Dimtel method using fuzzy logic for establishing cause-and-effect relationships between enablers are employed. What sets this research apart from others is its focus on identifying the combined enablers for implementing the circular economy and Industry 4.0 at the Ardakan Glass Factory Group of Yazd, as well as the network approach that examines the relationships and interactions between these enablers. Given these key elements, this research aims to address the following questions:
-What are the effective enablers for implementing the circular economy and Industry 4.0 at the Ardakan glass factories in Yazd?
-What is the effectiveness and influence, including cause-and-effect relationships, of these enablers?
Materials and Methods
This research is categorized as applied-developmental research in terms of its purpose and is classified as a field-library study in terms of its methodology. Its objective is to formulate a novel scientific model of enablers for implementing circular economy and Industry 4.0 within organizational supply chains. Given the significant number of qualitative articles that have explored the enablers of Industry 4.0 and the circular economy across various industries and the need to establish a shared understanding of these enablers, the first stage of this research involved identifying effective enablers using the meta-synthesis qualitative method. Their validity was assessed through content validity, which involved obtaining opinions from 15 organizational experts. In the second phase of the research, the researchers evaluated the effectiveness and impact of these enablers using the Fuzzy DEMATEL method. The statistical population for the first stage of the research comprised all studies published in the Scopus database, the largest text database, related to the enablers that influence the implementation of circular economy and Industry 4.0 within organizational supply chains up until the commencement of this research. In the second stage of the research, the statistical population included all professors and managers with expertise in sustainability, familiar with circular economy, and knowledgeable about Industry 4.0 technologies at Ardakan Glass Factories in Yazd. For this phase, a purposeful sampling method was used to select ten participants.
Discussion and Results
The purpose of the current research is to analyze the enablers that are effective in implementing the circular economy and Industry 4.0 within the supply chain of Ardakan Glass Factories in Yazd. In the first stage of the research, various articles were reviewed, and the meta-combination method was employed to identify and categorize relevant enablers. This process led to the identification of 15 enablers across four dimensions: economic, human resources, organizational management, and infrastructure. In the second stage, the Fuzzy DEMATEL technique was utilized to investigate the cause-and-effect relationships between these enablers. The research results revealed that the economic and infrastructural enablers are considered influential dimensions that affect human resources and organizational management dimensions. Within the economic dimension, "budget allocation for the implementation of the circular economy and Industry 4.0" and "stimulation of demand for circular products" emerged as the most effective enablers. Additionally, in the infrastructure dimension, "development of IT standards and infrastructure" was identified as the most influential enabler for the implementation of the circular economy and Industry 4.0 within the supply chain. In the organizational management dimension, "the support and commitment of senior management" was recognized as the most influential enabler.
Conclusion
While the enablers mentioned are considered among the most effective ones in implementing circular economy and Industry 4.0 in the Ardakan Glass Factories of Yazd, it's crucial for the glass industry to prioritize the most important enablers. It's essential to pay adequate attention to all identified enablers. Using specific guidelines and a checklist of effective enablers during decision-making can facilitate the decision-making process and enhance decision-making capabilities. Therefore, based on the identified enablers and their importance in this research, it's recommended to develop and provide guidelines and checklists for executive managers. Among the significant limitations of this research is the reliance on a single scientific database, Scopus, for sourcing research. It's advisable to supplement this by utilizing other databases such as Google Scholar and Web of Science. Additionally, the classification of enablers was conducted using a qualitative approach. Researchers are encouraged to name and categorize enablers using survey and quantitative methods, such as cluster analysis, to expand their research scope. Another limitation pertains to the research's statistical population, which was restricted to Ardakan Glass Factories in Yazd due to time and cost constraints. To generalize the research results, it's advisable to investigate the same research topic in other glass factories across the country. Future researchers could employ methods like fuzzy cognitive mapping and systems dynamics to examine relationships and interactions between enablers. Moreover, the enablers identified and analyzed in this research were primarily based on international studies. To adapt these enablers to the specific conditions of Iran's industries, it's suggested that in-depth interviews be conducted with industry owners. This way, certain enablers that may be unique to Iran's circumstances or require different interpretations can be revised.
