A review of an article on “Supply decisions for circular business models”, with focus on the literature review done: for MBA students

A review of an article on “Supply decisions for circular business models”, with focus on the literature review done: for MBA students

 

How to describe the reference of the article in Harvard reference format?

The Harvard reference for the article based on the information in would be:

Laukkanen, M., Tura, N. & Kähkönen, A.-K., 2026. Supply decisions for circular business models: What are they, and why they matter? Journal of Purchasing and Supply Management, 32, 101079. Available at: https://doi.org/10.1016/j.pursup.2025.101079 [Accessed date].

 

What are the research objectives, research issues, research philosophy (i.e. positivism, interpretivism, pragmatism, and critical realism) and research type (i.e. descriptive, exploratory, causal, and evaluative types) of the study?

Based on the article "Supply decisions for circular business models: What are they, and why they matter?" by Laukkanen, Tura, and Kähkönen:

Research Objectives:

• To investigate supply decisions and their associated criteria within circular business models.
• Specifically, to understand supply decisions in the context of clothing libraries as a novel circular business model.
• To develop a framework capturing key selection decisions (supplier, product, material, supply channel) for circular business models.
• To elaborate on circular sourcing and supplier selection by expanding the scope of circularity criteria and deepening understanding of the criteria for supply decisions.

Research Issues:

• How do supply decisions operate and which criteria are used in circular business models?
• What are the key criteria at different levels (supplier, product, material, supply channel) affecting supply decisions in circular contexts?
• How do upstream and downstream supply chain considerations affect these decisions?
• How can supply decisions promote sustainable resource use and support circularity goals?

Research Philosophy:

• The research adopts an interpretivist philosophy.
• It uses qualitative, exploratory methodology emphasizing understanding the meanings and experiences of supply decisions in circular business models from multiple stakeholder perspectives (clothing libraries and suppliers).
• The analysis is abductive, combining empirical findings with existing theory to generate new theoretical insights, consistent with interpretivism.

Research Type:

• Exploratory study.
• The study aims to gain in-depth insights into an understudied phenomenon (supply decisions in circular business models).
• The use of qualitative interviews and development of an initial framework indicates a focus on exploration rather than description or causal explanations.

In summary:

• Objectives: To explore and conceptualize supply decisions and criteria in circular business models (clothing libraries).
• Issues: Understanding types and criteria of supply decisions, supply chain perspectives in circular context.
• Philosophy: Interpretivism (qualitative, exploratory, abductive analysis).
• Type: Exploratory research.

These positions are explicitly and implicitly described across sections including the abstract, introduction, and methodology.

How do the research philosophy, research type and research objectives of the study influence the literature review approach and literature review focus of the study?

The research philosophy (interpretivism), research type (exploratory), and research objectives (to investigate and develop a framework for supply decisions in circular business models) significantly shape the literature review approach and focus in the study as follows:

1.    Research Philosophy: Interpretivism

• Influence on Literature Review Approach: Given the interpretivist philosophy, which emphasizes understanding complex social phenomena from participants' perspectives, the literature review adopts a qualitative and thematic approach rather than purely quantitative or positivist methods. The review aims to integrate diverse theoretical perspectives to frame the study's focus and to identify gaps in understanding supply decisions in circular business models.
• Literature Review Focus: The review critically engages with existing concepts around circular business models, purchasing and supply management (PSM), supplier selection, and sustainability criteria. It explores prior frameworks and underlines the insufficiency of existing research specifically on supply decisions for circular business models, thereby justifying the qualitative exploratory nature of the study.

2.    Research Type: Exploratory

• Influence on Literature Review Approach: Exploratory research typically involves gathering broad background knowledge to identify key themes and gaps. Therefore, the literature review is likely broad, exploratory, and concept-driven rather than hypothesis-testing or strictly systematic. This is consistent with the inductive and abductive approach in qualitative research to build new theoretical frameworks.
• Literature Review Focus: It emphasizes concepts related to circular economy, circular business model archetypes, circular sourcing, and supplier selection criteria. The review surfaces existing classifications and their limitations to highlight the novelty and necessity of investigating supply decisions specifically for circular business models.

3.    Research Objectives: Investigate and develop a framework for supply decisions in circular business models

• Influence on Literature Review Approach: The literature review aligns with the objective of framing supply decisions by synthesizing prior work related to circular economy principles, purchasing and supply management, and supplier selection. It serves as a foundation to situate the study and to inform data collection and analysis.
• Literature Review Focus: Focused on sourcing sustainability criteria, circularity in supply chains, and supply decision-making processes, the review integrates insights across disciplines to support framework development. It also includes studies on clothing libraries and circular product-service systems as empirical examples.

In summary:

• The interpretivist philosophy leads to a literature review that seeks to understand and interpret diverse perspectives and existing theory rather than test or confirm hypotheses.
• The exploratory research type requires a broad, thematic literature review aimed at identifying gaps to justify the study and frame data collection rather than exhaustive systematic review.
• The research objectives orient the literature review toward conceptualizing supply decisions and criteria relevant to circular business models, to support the development of a novel framework and guide qualitative inquiry.

This interplay results in a literature review that is integrative, concept-driven, critical of existing gaps, and aligned with the goal of exploring underdeveloped supply decision areas in circular business models.

 

Does the literature review examine any major academic theories?

Yes, the literature review examines several major academic theories and concepts to ground the study. While it does not focus on a single dominant theory, it draws on and integrates multiple relevant theoretical perspectives, including:

1.    Circular Economy and Circular Business Models Theories: The review extensively engages with theoretical frameworks and typologies related to circular economy principles and circular business model archetypes. It references works by Geissdoerfer et al., Bocken et al., and others who have theorized about circularity in business models, focusing on resource use efficiency, sustainability, and product lifecycle management in a circular context.

2.    Purchasing and Supply Management (PSM) Theories: The literature review situates supply decisions within the broader PSM literature, particularly concerning supplier selection, sustainable sourcing, and multi-criteria decision-making methods. It acknowledges calls for integrating planetary boundaries and circularity into PSM, referencing scholars like Knight et al. and Bai et al., who advocate more sustainable procurement processes.

3.    Multi-Criteria Decision-Making (MCDM) Methods: Although the study critiques traditional MCDM approaches (e.g., fuzzy TOPSIS, VIKOR, AHP) for supply decisions in circular business models as insufficient to capture complexity and trade-offs, these methods are discussed as a theoretical backdrop. The review challenges and extends these theories by emphasizing the need for context-specific, expert-driven evaluation criteria.

4.    Stakeholder Theory and Collaboration: The study references stakeholder theory in understanding the collaboration between suppliers, customers, and purchasers in enabling circular supply decisions. It builds on Freudenreich et al.'s perspective on business models creating value for sustainability through stakeholder interaction and collaboration.

5.    Sustainability and Sustainable Supplier Selection Literature: The literature review draws from the sustainability and sustainable supplier selection field, differentiating it from circular sourcing. It clarifies terminology and theoretical distinctions, emphasizing that circularity focuses on products and materials circulating, not suppliers per se.

Overall, while the study focuses on empirical framework development and practical decision-making, it integrates these key academic theories as a foundation, critiques their limitations, and extends the theoretical conversation around circular supply decisions.

 

Describe 2 research limitations and 2 literature review limitations of the study.

The study acknowledges several limitations related to both its research design and literature review:

Research Limitations:

1.    Focused on One Circular Business Model Archetype (Clothing Libraries): The study's empirical investigation centers exclusively on clothing libraries as a circular business model archetype. While this provides depth and specificity, it limits the generalizability of findings to other circular business models. The authors suggest that future empirical research should explore a broader range of business model types, such as regenerative business models, to further develop and validate the proposed supply decision framework.

2.    Limited Supplier Perspective on Customer Supply Decisions: Although the study includes interviews with suppliers to enrich understanding, it notes that supplier interviews provided limited direct insights into how suppliers perceive and influence their customers’ supply decisions for circularity. This constrains the comprehensiveness of the supplier viewpoint, highlighting the need for future research focusing directly on supplier perspectives regarding supply decisions in a circular context.

Literature Review Limitations:

1.    Insufficient Circular Economy Indicators and Metrics: The literature review identifies that existing research on circular economy indicators is insufficient, leading to inaccuracies and improper supplier selection decisions in circular sourcing contexts. Many studies rely on traditional sustainability criteria without incorporating the unique temporal and actor-based complexities of circular supply chains, resulting in incomplete assessments of circularity impacts.

2.    Overreliance on Multi-Criteria Decision-Making Methods Without Contextual Nuance: The review critiques the prevailing use of multi-criteria decision-making techniques (e.g., AHP, TOPSIS, VIKOR) as being primarily based on predefined criteria and weights drawn from existing research. These methods often overlook the dynamics of varying contexts, neglect key circular supply chain actors (like collectors and recyclers), and fail to integrate the temporal dimensions critical for circular business models, thus limiting their applicability in truly circular sourcing decisions.

These limitations suggest both empirical and theoretical gaps that the study aims to address and also points towards future research opportunities.