Track: Sustainability in Supply Chain, Enterprise Operations and Strategies

Abstract

This paper investigates the adoption of Circular Economy (CE) in the upstream agri-food supply chain, employing a qualitative multiple case study research and semi-structured interviews. The findings suggest that the CE emerges in the upstream agri-food supply chain and the early stage of development. In particular, these include (1) the elimination of pollution and waste start to be implemented due to the realization of cost-saving initiatives, (2) the need for collaboration in the supply chain and with external stakeholders, (3) technology adoption, in particular digital technology, is beneficial to reduce asymmetric information, and (4) social orientation in the form of diverting crops to secondary markets, donations, and involvement of the local community. Some of the advantages from exploiting interfirm collaboration include the creation of adding value in securing raw materials and acquiring knowledge through asset specificity. Uncertainty, due to the absence of a contract with the customers that can protect the growers, influences ineffective waste elimination. This paper contributes to the literature on CE in the upstream agri-food supply chain. Future research is needed to investigate the CE involving downstream agri-food supply chain and large samples. The practical implication for the upstream supply chain actors is in terms of making the supply chain more circular.