Panafrica: Meeting the SDGs Through a Circular Business Model

Abstract The concept of circular economy (CE) has been receiving a lot attention over the past years from academics, practitioners and policymakers. This is particularly case for small- medium-sized enterprises (SMEs) who find in CE way to overcome their resource scarcity. However, little known about how embracing perspective can contribute meet sustainable development goals (SDGs). present chapter aims at answering this question. Through single study, we explore drivers, managerial practices collaborations implemented by SMEs generate economic, social environmental values. Keywords Circular Sustainable Start-up Internationalization Africa Textile industry Citation Dominguez, N. (2023), "Panafrica: Meeting SDGs Business Model", Ghauri, P.N., Elg, U. Hånell, S.M. (Ed.) Creating Competitive Position: Ethical Challenges International Firms (International Management, Vol. 37), Emerald Publishing Limited, Bingley, pp. 179-195. https://doi.org/10.1108/S1876-066X20230000037010 Publisher: Limited Copyright © 2023 Noémie Dominguez License work published under Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate create derivative works these (for both commercial non-commercial purposes), subject full attribution original publication authors. terms licence be seen http://creativecommons.org/licences/by/4.0/legalcode. 1. Introduction gaining popularity among governments, companies citizens (Sohal & De Vass, 2022) notably since United Nations Development Goals (UN SDGs). It addresses pressing demand sustainability generated problems, societal expectations economic challenges across globe (Geissdoerfer et al., 2017; Sohal 2022). perceived achieve corporate (Khan 2020) promoting reasonable use resources reducing firms’ ecological footprint. also as create, deliver capture value while building fairer societies worldwide (Chizaryfard 2021). Indeed, stands transition linear business models multiple industries (Dey 2020). encourages stakeholders collaborate order reduce gas emissions. them operate more efficiently reducing, reusing and/or recycling (Kirchherr 2017). By doing so, public private actors participate increasing resilience chains engaging remains difficult today. it implies radical shift strategy, operations firms willing engage into must design model, including network, propositions towards customers relationships with supply chain partners, best outcomes (Centobelli 2022, p. 594) Extant literature focusses on specific aspects CE, such impact product processes (e.g. Marconi 2019), creation Goyal 2018), well barriers related implementation Jesus Mendonça, others. Prior research showed large successfully embraced they benefit Calzolari Our knowledge navigation through process limited despite fact that constitute than 90% world falls short explaining adapt model according principles 2020; Dey question remains, however, critical importance see strategic choices lack liabilities foreignness, smallness newness Hollender integrate contributes meeting SDGs. We conducted study French start-up Panafrica producing African-inspired shoes. highlight main engaged non-economic value. More specifically, point key role vision commitment sustainability, collaborative long-term-oriented relations suppliers (to gain frugality creativity) explain added-value change consumers’ habits). demonstrate fits SMEs’ scarcity dilemma boosting local communities activities, promotion safe fair working condition mobility regular employee trainings. rest structured follows. After presenting our review, describe methodology selected conduct research. introduce before highlighting results, discussion theoretical implications work. conclude mentioning limits perspectives future 2. Literature Review Scholars, governments have strongly advocating benefits 2021; Merli 2018). Confident its viability necessity, perceive scalable growth enhance productivity, global reach objectives carbon neutrality Interestingly, richness makes same time an easily understandable but hardly operationalizable concept. blurriness associated plurality definitions constitutes barrier advance field, conceptually different understandings might inconsistent or misleading results Based analysis 114 identified literature, Kirchherr al. (2017) conceptualize system replaces ‘end-of-life’ alternatively reusing, recovering materials production/distribution consumption processes. operates micro level (products, companies, consumers), meso (eco-industrial parks) macro (city, region, nation beyond), aim accomplish development, thus simultaneously creating quality, prosperity equity, current generations. enabled novel responsible consumers. (p. 229) are expected put heart adapting network organizational structure, improving partners proposing new type Lüdeke-Freund 2019; Planing, 2015). decision transform often combination two elements, is, (1) contextual factors Centobelli (2) capabilities Khan 2021) leading Urbinati 2.1. Contextual Factors Transitioning motivated external regulations policymakers international institutions, pressures natural resources, example. forced law desire produce differently stakeholders’ expectations. EU Action Plan, Green Deal even UN (Goyal 2018) examples initiatives supranational drive populations CE. other emerging, indicators organizations transformation models. emergence financial agencies illustrates trend. make longevity, renewability reuse, repair, upgrade, refurbishment, servitization, capacity sharing dematerialization core (Esposito (2020) plead inclusion analysis. Identifying existing drivers organizational, institutional, technological levels foster practices. In line Mendonça (2018), pivotal played policymakers, actions influence adoption They act facilitators, helping remove implement dedicated (Kichherr slow making decisions would not take social, market consideration (or misestimate impact). 2.2. Managerial Capabilities Practices If scholars agree potentiality competitive advantage firms, complexity requires deep changes According Mousavi ability willingness firm transitioning dependent dynamic capabilities. Being able reconfigure internal respond (Teece 1997) maintain creating, transferring capturing (Urbinati quantitative sample 220 Italian manufacturing (2021) show sensing, seizing reconfiguring facilitating authors, monitoring R&D routines managers identify opportunities – opportunities, thus, realized planning upgrading. Sharma go further specifying changes. Analysing Indian context, authors strong will, innovation technology upgradation, training, motivation clear guidelines success review models, distinguish based stage proposition (creation, transfer capture). encompasses ‘activities product/service preserving efficient usage closed loops’ 2020, 8). Several creation, ‘Design X’ (i.e. redesigning products circular), upgradability, lifecycle assessments waste management (see 2020 detailed review). supporting end-of-life protection bioenvironment. includes recycling, remanufacturing disassembly environment (Marconi Implementing kind usually production systems developing competencies (Mendoza 2017) energy, improve life cycle management. Value conceives customer segmentation relationship Franzò four types transfer: direct involvement customers, extensive communication, etc.) Geissdoerfer 2017); communication circularity all channels in-store advertising, website, sales personnel, (3) offering right carefully deeply aware proposed) Bocken 2016; Evans (4) habits customers) due selling services Shao Ünal, Wastling Finally, refers only capitalization additional revenue sources intangibles, cost reduction preservation well-being To implementing practices, take-back product-service systems, use, etc. Customers do own anymore become rather temporary users good service (and pay consequently use): remain owners services. streaming platforms (such Netflix Spotify) car leasing, collect back so reused, redistributed, remanufactured refurbished (Lewandowski, 2016). encouraged offer virtue products/services, increased longevity maintenance, revalorization repair; possibility combine substitute products/services Reim 2015) Rosa 2019). build close suppliers. substantial efforts raise customers’ awareness ethical, made Table 1 summarizes literature. Drivers Related Adoption. Description References Policy (new regulations) (2020), Esposito (2018) Stakeholders’ pressure Resource Supranational programmes Creation evaluation performance Internal Managers’ expectation (2021), Firms’ Main Policymakers Provide guidance Kichher Encourage/facilitate Slow Stakeholders Pressures embrace (2019), Planing (2015) Suppliers Participate not) Market Mendoza Product upgradations Employee training policies Design X (recycling, remanufacturing, disassembling, environment) Reconfiguration (life-cycle assessments, management, efficiency) Commercialization activities (2016), (2017), Multi-channel values Customer Change Take-back Lewandowski (2019) Collaborative Subscription offers (rather traditional buy/sell activities) Services substitutes life-cycle 2.3. Despite richness, still At exception some studies Rizos 2022), most focussed multinational firms. Scholars agree, tend vulnerable reputation networks. Understanding small (thus, proposal) succeed importance. enrich understanding faced and, provide insight competitiveness. Besides size, another important limitation debates relates ecosystems tends centred build/transform institutions navigate process. part networks influenced decisions. entanglement several reasons. Firstly, interconnected globe: various decision, access Engaging investments support stakeholders. recognized major preventing (Rizos Thus, should shed lights (drives, barriers) environmental, ethic created network. These elements particular understand against climate change, protect biosphere positive sustaining Therefore, practical demonstrations narratives succeeded valuable comprehension phenomenon. next section, adopted. 3. Methodology exploratory adopts in-depth approach. Single proved relevant accordingly Zucchella Previtali, adopt Previtali abductive inferential approach answer Abductive inferences allow new, uncommon unknown situations (Gary, 2010) observed facts (Richardson Kramer, 2006). ‘has employed (Stubbs Cocklin, 2008) uncover forms organization particular’ (Zucchella 2019, 276). Abduction constant bridges between theory field work, which strength analyses. Drawing upon propose ‘exemplar’ (Patton, 2002). purposefully illustrate content precisely, focus allowing perspective. focused fashion negative consequences (use chemicals, over-consumption recyclability fast items, poor conditions workers fabrics located countries. shoe manufacturing, where multinationals accused modern slavery, child labour, Secondly, knows growing number existing) turning response consumer attitudes two-step logic. shoes eco-friendly France found 28 companies. refined search include having excluded end, chose one SME (Panafrica) whose characteristics were aligned objectives: operating polluting (the textile industry), acting processes, generating Furthermore, co-founders interviews share data researchers. From June November 2021, CEOs brand, lengthening 1h30 3h30. Open-ended questions asked interviewees, history approach, developed stakeholders, each partner firm, ended coming projects. collected allowed us map materialized model. led when intervene process, action shape communities. Analysed SDG lens, (SDG 12) poverty 1), ensure education 4) promote decent session presents study. 4. Panafrica: Story Ethnic Committed Brand 2015 Hugues Didier Vulfran de Richoufttz. specialized design, manufacture, men women. headquarters Paris. 10 employees turnover superior million euros. Shoes sold online prices stemming 79 149 4.1. was born passion founders African cultures company respectful people environment. Nothing predestined leaders brand. Richoufftz met university, following master Urbanism Territorial Planning. started careers microfinance (Hugues) real estate (Vulfran) company, unsatisfied loss meaning job misalignment professional personal explains that: I didn’t myself urban switched school did finish it. My goal travel, spent nine months Singapore then six Morocco my studies, strategy consulting. discovered loved had no idea. thing knew wanted experience. His interest stems three-year position Senegal developer Ivorian microcredit institution. experience him agricultural sectors better specificities context. entrepreneurs’ wax committed brand world. industry, decided ethnic first because like shoes, what interesting wider public. Everybody wears every day. accessory probably ourselves fantasy originality. A Z brand: something recognizable proud wear. (Vulfran Richoufftz) societies. overconsumption suppliers/subcontractors non-recyclability many clothes decried accident happened Rana Plaza 2014 (Bangladesh) provoked shock worldwide, unveiling countries absence location determinant multinationals. responsibility levels: supplier relation production. 4.2. 2016, went French-speaking potential using built past. alignment values, expertise, long-term cooperation components selection partners. year, partnerships formed family Partners complementarity avoid competition them) employees: Xoobma cooperative (Burkina Faso), Uniwax (Ivory Coast), L’Atelier d’Esther (Ghana) Hicham’s Workshop (Morocco). Burkina Faso visited women’s seduced immediately phase women there learn dye weave days week, courses read, write, count during fifth machines traditional, does need electricity operate. plus reduces interruptions face power shortage. objective give skills autonomous start if wish. Ghana, person called Esther masters technique printing batik defence her know-how, Having treating your respect, i.e. paying price, putting nor anticipate orders three cotton price respect workers. idea behind live dignity preserve expertise. allows stable flow uncertainty volatility seasonality industry. reflected paid offered employees. environment, employment contract guaranteed minimum wage rights conditions. Moreover, salary hour worked (+20% maximum 2 hours per week). vein, 3-week vacation year health coverage, people’s wealth ensuring medical assistance problem. trainings develop move up ladder. protecting brand’s reputation, partners’ ens