Circular Green Economy: Resources and Capabilities – Theory-Based Analysis

Circular Green Economy: Resources and Capabilities – Theory-Based Analysis

José G. Vargas-Hernández, Marlene de Jesús Morales Medrano, Jorge Armando López-Lemus
DOI: 10.4018/978-1-7998-5116-5.ch002
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The purpose of this chapter is to analyze the green and circular economy (GCE) model from the point of view of the resources and capacities of the organization. How is the application of the circular economy model related to strategic management? At first glance, it seems that the CE is operating within an operational level with a social impact. However, it also has implications that allow us to think that it can be used as an internal resource of the company that, if applied in the right way, can become a competitive advantage. In other words, the application of the CE is related to strategic management through the point of view based on resources and capabilities. Therefore, the present investigation has a descriptive-correlational nature, which was analyzed through Peng's VRIO framework.
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Green Economy, Green Growth And Sustainable Development

The green economy concept is called the next oxymoron after sustainable development because they overlap each other (Green & McCann, 2011). Conference on Sustainable Development (Rio+20) in 2012 agreed that in the context of sustainable development, the concept of green economy should be promoted. The transition to a green economy has economic and social justifications for public and private actors to contribute offering opportunities for investments and green procurement by providing new market-based incentives and mechanisms (Shimova, 2019; Popkova, Bogoviz, & Ragulina, 2018).

Key Terms in this Chapter

Resources and Capabilities: The theory of resources and capabilities states that organizations are different from each other based on the resources and capabilities they have at a given time, as well as the different characteristics of the same and that these resources and capabilities are not available to all companies in the same.

Transition: A change from one form or type to another, or the process by which this happens.

Sustainable Development: Development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Strategic Plan: It is a document integrated in the business plan that includes the planning at the economic-financial, strategic and organizational level with which a company or organization has to address its objectives and achieve its future mission.

Transformation: The result of a process of change of form. It happens when one thing, fact or idea is converted into another.

Circular Economy: The circular economy proposes an economic and productive model characterized by sustainability and saving of resources and energy sources in which goods are produced, consumed, recycled, produced and re-consumed, entering a life cycle.

Green Growth: The one that promote economic growth and development while ensuring that natural assets continue to provide the environmental resources and services on which our well-being depends.

Green Economy: That which leads to the improvement of human well-being and social equality, while environmental risks and ecological scarcity are significantly reduced.

VRIO Analysis: VRIO analysis is an internal business analysis tool that is included in the theory of resources and responds to the four basic characteristics that a resource must meet to give the company a competitive advantage.

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