Circular Economies and Digital Closed Loop Supply Chains in the GCC
Today, there is growing interest among manufacturers in general and those competing in the Gulf Cooperation Council (GCC) member-states in particular in identifying sustainable practices. This interest is motivated by a number of factors, including the need for more cost-efficient and environmentally responsible business practices as well as the need for the diversification of fossil fuel dependent economies that characterize these Middle Eastern countries (Al-Qudah & Houcine, 2024). In response to these needs, there has been a corresponding interest in determining how circular economy (CE) practices can be integrated into sustainable digital closed loop supply chains (CLSCs) to achieve these outcomes. To this end, the study purpose of this study is to review the relevant literature to examine the various ways in which CE practices can promote the improved performance of digital CLSCs for manufacturers operating in the GCC region.
Studies of this type are essential to achieving optimal outcomes in this scenario since there remains a paucity of timely and relevant research concerning the precise relationship that exists between CE and digital CLSCs in the GCCs manufacturing industry. The research to date has focused primarily on the effects on supply chains from integrating CLSCs within a CE and their implications for leadership teams in other jurisdictions, there has not been a comparable interest in determining the manner in which these strategies are regarded by manufacturers within the GCC member-states. Therefore, a dual purpose of this study is to provide a summary of findings from the existing research concerning the most effective approaches to the integration of CE practices in CLSCs and any resulting effects on organizational performance and profitability in the GCC.
Taken together, it is reasonable to suggest that studies of this type stand to make a significant contribution to the existing body of knowledge in this area given the demonstrated abilities of integrating CLSCs into CE practices in other venues. In addition, the findings that emerge from this study will also provide a useful framework in which to explore potentially viable strategies for integrating and implementing the resulting combination of CLSCs and CE practices in ways that promote cost-effective and sustainable business practices in the GCCs manufacturing industry (United Arab Emirates Ministry of Climate Change and Environment, 2021).
In addition, the study uses a structural equation...
This analytical strategy provides a robust methodological approach to help fill the above-described gaps in the existing body of knowledge concerning sustainable supply chains for the manufacturing industry in general and within GCC member-states in particular. In addition, this research strategy will also provide valuable snapshot benchmarks that can guide future studies and practices. In sum, the dual purposes of this study stand to provide important and timely findings that can benefit manufacturers throughout the GCC achieve their organizational goals while improving their environmental, economic and
social performance as discussed further below.
Background
Circular economy and its effects on sustainable digital logistics and closed-loop supply chains
The circular economy (CE) has gained considerable attention in recent years, especially for its influence on sustainable...
…moving from their comfort zones and most actively resist significant changes in their organizations even when it is in their own best interests. Indeed, in most cases where a conventional supply chain operations has been in
place for a long time, the investments that are required for the new infrastructure that is required to support this integration complex and frequently costly (Batista et al., 2018).
This harsh reality underscores the need for increased awareness on the part of supply chain managers who are in the best position to emphasize the long-term cost benefits of this potential wholesale transition by highlighting its alignment with prevailing governmental policies concerning environmentally responsible business practices as well as improve manufacturers ability to remain flexible and responsive to changes in consumer demand and preferences. Likewise, governmental regulatory regimes are frequently complex and practitioners must ensure the changes to supply chain networks and manufacturing practices required for this transition conform to prevailing legal requirements (Kazancoglu et al., 2020).
Hypotheses
To achieve the above-stated objectives and develop informed answers to the study question, the study guided by the following three research hypotheses:
Hypothesis 1: There is a statistically significant positive relationship between CE practices and sustainable digital CLSC performance levels in the manufacturing industry in GCC member-states.
Hypothesis 2: Manufacturers in the GCC that implement CE practices in their manufacturing processes will outperform their competitors that do not along several dimensions, including economic, social and environmental in statistically significant ways.
Hypothesis 3: The integration of CE practices into digital CLSCs will result in a statistically significant improvement in resource efficiency and waste reduction for manufacturers…
