Fostering Cross Functional Collaboration for Circular Innovation in Manufacturing Sector

Authors

  • Erika Grabocka University of Tirana

Abstract

Abstract: In light of the growing environmental issues and the necessary transition to a green economy, it is vital to comprehend how collaboration propels systemic change. This paper delves into how cross-functional collaboration promotes sustainable development and circular innovation in the manufacturing sector. Building on previous research, this paper summarizes findings from numerous researches conducted in the manufacturing industry to highlight the significance of teamwork in accomplishing sustainability and circularity goals.  An analysis was performed on empirical papers published between 2019 and 2024, utilizing a systematic review methodology. Four key themes emerge: the impact of cross-functional teams on manufacturing dynamics, the relationship between circular economy principles and organizational performance, challenges inherent in cross-functional collaboration, and strategies for overcoming organizational silos to foster circular transformation. The findings reveal the critical role that cross-functional cooperation plays in promoting circular innovation and resolving environmental issues. These insights are pertinent to researchers, investigators, and organizational executives, emphasizing the need for proactive measures and technological integration to achieve sustainable goals. By accentuating the significance of cross-functional cooperation in fostering circular innovation, this research advances the understanding of cooperative strategies for sustainable development and provides guidance for real-world application within the manufacturing sector.

References

Acerbi, F. & Taisch, M. (2020). A literature review on circular economy adoption in the manufacturing sector. Journal of

Cleaner Production, 273, 123086.

Aithal, S. & Aithal, P. S. (2023). Importance of Circular Economy for Resource Optimization in Various Industry Sectors–A

Review-based Opportunity Analysis. International Journal of Applied Engineering and Management Letters (IJAEML), 7(2),

pp. 191-215.

Alshwayat, D.; MacVaugh, J. A. & Akbar, H. (2021). A multi-level perspective on trust, collaboration, and knowledge sharing

cultures in a highly formalized organization. Journal of Knowledge Management, 25(9), pp. 2220-2244.

Badhotiya, G. K.; Avikal, S.; Soni, G. & Sengar, N. (2022). Analyzing barriers for the adoption of circular economy in the

manufacturing sector. International Journal of Productivity and Performance Management, 71(3), pp. 912-931.

Barros, M. V.; Salvador, R.; do Prado, G. F.; de Francisco, A. C. & Piekarski, C. M. (2021). Circular economy as a driver to

sustainable businesses. Cleaner Environmental Systems, 2, 100006.

Bjornbet, M. M.; Skaar, C.; Fet, A. M. & Schulte, K. O. (2021). Circular economy in manufacturing companies: A review of

case study literature. Journal of Cleaner Production, 294, 126268.

Bocken, N. M. P. & Geradts, T. H. J. (2020). Barriers and drivers to sustainable business model innovation: Organization

design and dynamic capabilities. Long Range Planning, 53(4), Article 101950.

Borah, S. B.; Mallapragada, G.; Bommaraju, R.; Venkatesan, R. & Thongpapanl, N. (2022). Interfirm collaboration and

exchange relationships: An agenda for future research. International Journal of Research in Marketing, 39(2), pp. 603-618.

Brown, P.; Von Daniels, C.; Bocken, N. M. P. & Balkenende, A. R. (2021). A process model for collaboration in circular

oriented innovation. Journal of Cleaner Production, 286, Article 125499.

Chhimwal, M.; Agrawal, S. & Kumar, G. (2022). Challenges in the implementation of circular economy in manufacturing

industry. Journal of Modelling in Management, 17(4), pp. 1049-1077.

Cillo, V.; Petruzzelli, A. M.; Ardito, L. & Del Giudice, M. (2019). Understanding sustainable innovation: A systematic

literature review. Corporate Social Responsibility and Environmental Management, 26(5), pp. 1012–1025.

de Oliveira, R. T.; Ghobakhloo, M. & Figueira, S. (2023). Industry 4.0 towards social and environmental sustainability in

multinationals: Enabling circular economy, organizational social practices, and corporate purpose. Journal of Cleaner

Production, Article 139712.

Diaz, A.; Reyes, T. & Baumgartner, R. J. (2022). Implementing circular economy strategies during product development.

Resources, Conservation and Recycling, 184, Article 106344.

Eisenreich, A.; Fuller, J. & Stuchtey, M. (2021). Open circular innovation: How companies can develop circular innovations

in collaboration with stakeholders. Sustainability, 13(23), Article 13456.

Hussain, M. & Malik, M. (2020). Organizational enablers for circular economy in the context of sustainable supply chain

management. Journal of Cleaner Production, 256, 120375.

Igbinenikaro, O. P.; Adekoya, O. O. & Etukudoh, E. A. (2024). Fostering cross-disciplinary collaboration in offshore projects:

strategies and best practices. International Journal of Management & Entrepreneurship Research, 6(4), pp. 1176-1189.

Jabbour, C. J. C.; Seuring, S.; de Sousa Jabbour, A. B. L.; Jugend, D.; Fiorini, P. D. C.; Latan, H. & Izeppi, W. C. (2020).

Stakeholders, innovative business models for the circular economy and sustainable performance of firms in an emerging

economy facing institutional voids. Journal of environmental management, 264, 110416.

Jaeger, B. & Upadhyay, A. (2020). Understanding barriers to circular economy: cases from the manufacturing industry. Journal

of Enterprise Information Management, 33(4), pp. 729-745.

Kang, M.; Ki Hyun, U.; Shou, Y. & Roh, J. J. (2022). Matching goal-based incentive systems with cross-functional integration

to improve operation and innovation performance. International Journal of Operations & Production Management, 42(2), pp.

-254.

Kohl, K.; Hopkins, C.; Barth, M.; Michelsen, G.; Dlouha, J.; Razak, D. A.; Abidin Bin Sanusi, Z. & Toman, I. (2022). A wholeinstitution

approach towards sustainability: A crucial aspect of higher education’s individual and collective engagement with

the SDGs and beyond. International Journal of Sustainability in Higher Education, 23(2), pp. 218–236.

Kravchenko, M.; Pigosso, D. C. & McAloone, T. C. (2019). Towards the ex-ante sustainability screening of circular economy

initiatives in manufacturing companies: Consolidation of leading sustainability-related performance indicators. Journal of

Cleaner Production, 241, p. 118318.

Le, T. T.; Ferraris, A. & Dhar, B. K. (2023). The contribution of circular economy practices on the resilience of production

systems: Eco-innovation and cleaner production’s mediation role for sustainable development. Journal of Cleaner Production,

, p. 138806.

Liakos, N.; Kumar, V.; Pongsakornrungsilp, S.; Garza Reyes, J. A.; Gupta, B. & Pongsakornrungsilp, P. (2019). Understanding

circular economy awareness and practices in manufacturing firms. Journal of Enterprise Information Management, 32(4), pp.

-584.

Liu, Y.; Farooque, M.; Lee, C. H.; Gong, Y. & Zhang, A. (2023). Antecedents of circular manufacturing and its effect on

environmental and financial performance: A practice-based view. International Journal of Production Economics, 260, p.

Luthra, S.; Sharma, M.; Kumar, A.; Joshi, S.; Collins, E. & Mangla, S. (2022). Overcoming barriers to cross-sector

collaboration in circular supply chain management: a multi-method approach. Transportation Research Part E: Logistics and

Transportation Review, 157, p. 102582.

Mishra, R.; Singh, R. K. & Rana, N. P. (2022). Developing environmental collaboration among supply chain partners for

sustainable consumption & production: Insights from an auto sector supply chain. Journal of Cleaner Production, 338, Article

Nascimento, D. L. M.; Alencastro, V.; Quelhas, O. L. G.; Caiado, R. G. G.; Garza-Reyes, J. A.; Rocha-Lona, L. & Tortorella,

G. (2019). Exploring Industry 4.0 technologies to enable circular economy practices in a manufacturing context: A business

model proposal. Journal of manufacturing technology management, 30(3), pp. 607-627.

Nujen, B. B.; Kvadsheim, N. P.; Mwesiumo, D.; Reke, E. & Powell, D. (2023). Knowledge obstacles when transitioning

towards circular economy: An industrial intra-organisational perspective. International Journal of Production Research,

(24), pp. 8618-8633.

Pieroni, M. P.; McAloone, T. C. & Pigosso, D. C. (2019). Business model innovation for circular economy and sustainability:

A review of approaches. Journal of cleaner production, 215, pp. 198-216.

Reddy, V. V.; Kumar, P.; Rao, A. L. N.; Kumar, R.; Singh, S.; Asha, V. & Kareem, S. H. (2023). Waste to Wealth Generation:

Innovative Methodologies in Resource Utilization and Minimization in Circular Economy. In E3S Web of Conferences (Vol.

, p. 01035). EDP Sciences.

Rodriguez-Espindola, O.; Cuevas-Romo, A.; Chowdhury, S.; Díaz-Acevedo, N.; Albores, P.; Despoudi, S.; ... & Dey, P. (2022).

The role of circular economy principles and sustainable-oriented innovation to enhance social, economic and environmental

performance: Evidence from Mexican SMEs. International Journal of Production Economics, 248, 108495.

Schroeder, P.; Anggraeni, K. & Weber, U. (2019). The relevance of circular economy practices to the sustainable development

goals. Journal of Industrial Ecology, 23(1), pp. 77-95.

Sudusinghe, J. I. & Seuring, S. (2022). Supply chain collaboration and sustainability performance in circular economy: A

systematic literature review. International Journal of Production Economics, 245, 108402.

Suebsook, S. & Chaveesuk, S. (2020). Innovation, cross-functional team effectiveness and firm performance: an integrated

framework for Thai automotive industry. Journal of Economics, Business and Management, 8(2), pp. 91-95.

Suppipat, S. & Hu, A. H. (2022). A scoping review of design for circularity in the electrical and electronics industry. Resources,

Conservation & Recycling Advances, 13, Article 200064.

Takacs, F.; Brunner, D. & Frankenberger, K. (2022). Barriers to a circular economy in small-and medium-sized enterprises

and their integration in a sustainable strategic management framework. Journal of Cleaner Production, 362, 132227.

Ungureanu, P.; Cochis, C.; Bertolotti, F.; Mattarelli, E. & Scapolan, A. C. (2021). Multiplex boundary work in innovation

projects: The role of collaborative spaces for cross-functional and open innovation. European Journal of Innovation

Management, 24(3), pp. 984–1010.

van Langen, S. K.; Vassillo, C.; Ghisellini, P.; Restaino, D.; Passaro, R. & Ulgiati, S. (2021). Promoting circular economy

transition: A study about perceptions and awareness by different stakeholders groups. Journal of Cleaner Production, 316,

Werning, J. P. & Spinler, S. (2020). Transition to circular economy on firm level: Barrier identification and prioritization along

the value chain. Journal of Cleaner Production, 245, 118609.

Downloads

Published

2024-07-31

Issue

Section

Green Economy and Sustainable Development