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1

The Role of Ecological Modernization Principles in Advancing Circular Economy

Practices: Lessons from the Brewery Sector

Abstract

The companies presented different levels of proactivity to align with the perspective of

ecological modernization. More conservative firms, that is, with a lower level of risk

propensity to innovate and adhere to emerging sustainable practices, are less proactive

and tend to have fewer investments in circular economy practices. However, these

companies develop the intelligence needed to combat waste and ensure continuous

improvement in the use of the resources mobilized for their production systems. The

operationalization of circular economy practices occurs through the adoption of a set of

practices that value natural resources and seek to extract value from materials. Thus, the

interface established with the premises of ecological modernization is based on the

continuous improvement of processes, innovation, and adherence to business models

capable of revolutionizing the artisanal beverage segment. This research investigates an

emerging theoretical approach associated with a classical theory and well known in the

scientific environment. Although it is noteworthy that business studies have neglected

EMT in theoretical-empirical studies. And this contributes to the elaboration of an

unpublished, original study capable of generating significant contributions to the

brewing sector and to the players that work intensely for the competitiveness of

artisanal beer. Circular economics enable companies to minimize the negative impacts

of their production system by expanding the level of circularity of materials, innovating

in the production chain management ecosystem, and reinventing the business model

based on rising practices. Therefore, this study shows the level of contribution of the

circular economy to the brewing sector after disruption of the debate about ecological

modernization as an alternative of production with quality, productivity, technology,

innovation, respecting the territorial and geographical specificities and obtaining the

support of public policies.

Keywords: Sustainability. Circular Economy. Theory of Ecological Modernization.

1 Introduction The recent academic growth of the field of circular economy and its business

still requires advance in theoretical underpinning. Existing and emerging theory at the

level of organizational analysis, organizational theory, especially the Theory of

Ecological Modernization (EMT), provide an opportunity for advancement in this field.

Although there are many published studies on the subject EMT, Sehnem (2019)

found that the main ones in the area of business, accountability and management, and

most cited study of the subject, are reviews. And this shows an important gap to be

covered by studies in the area of business, especially in operations and sustainability,

with theoretical-empirical studies. It is necessary to elucidate how companies are acting,

acting and mobilizing to validate EMT premises at the organizational level. In what way

are capacities activated, resources mobilized, organizational skills stimulated, to make

the economy a consolidated practice at an organizational level, and to ensure the

preservation of natural resources, their perennially and the generation of employment

and income in a profitable and promising for the development of territories.

In addition, sustainability-oriented studies often lack deepening and mobilization

of organizational theories to investigate the constructs at the level of production,

operations, and innovation. There is no literature that sought the revision and integration

of EMT and circular economy. Another difference is to study such constructs in an

emerging country that has economic, political, institutional and geographic specificities

2

that capitalize valuable elements for a discussion in a sector with a wide rise and

capillarity of investments.

The brewing sector in Brazil, in particular, artisanal breweries continue to grow

exponentially in Brazil (Forbes, 2018). In ten years, Brazil ranged from 70 to 700

breweries. In 2017, the sector had growth in the range of 35% (Abracerva, 2018). This

denotes the importance and need to know in more detail the sector, its practices,

expansion expectations and opportunities for advancement. Therefore, it makes sense to

mobilize academic expertise to know in more detail the specificity of the artisanal

brewery market, especially, aspects associated to how are the practices of circular

economy and if they are triggered by EMT principles in the context of the analyzed

enterprises.

The article is organized as follows. Section 2 is a literature review of circular

economics and ecological modernization. Section 3 describes the methodology that was

used in the research and presents the results of the cases and cross-case analysis, the

main conclusions and proposals. The last section contains the main conclusions.

2 Theoretical Background

2.1 Circular Economy

Circular economy seeks to create value by minimizing waste, minimizing waste

and prioritizing the use of clean energies (Geissdoerfer et al., 2017). It follows the

principles of reduce, reuse and recycle (Sehnem et al., 2019a, Jawahir& Bradley, 2016,

Wu and Deng, 2013). It stimulates the adoption of a set of sustainable practices to create

circular business (Tura et al., 2019). As such, the universities seek to generate solutions

(including products and services) and business models that aim to improve the circular

economy and respond to scarce resources, minimizing environmental impacts and

producing economic benefits (Sehnem et al., 2019b).

The circular economy has been focused by entrepreneurs, business

representatives, policymakers, and regulatory aspects (Sehnem et al., 2019). It

represents a search for a response to environmental challenges (Tura et al., 2019).

In this context, drivers and barriers, such as environmental, economic, social,

political, institutional, technological, informational, allusive to the supply chain and

information (Tura et al., 2019) also occur. Especially, it requires managers to change

their mindset to enable a circular production system with closed cycles, short cycles and

regenerative and restorative nature (Ghisellini, et al., 2016).

Usually the circular economy practices most cited in the literature are:

regenerate, share, optimise, virtualize, exchange, 5Rs, product lifecycle extension,

reverse logistics, dematerialisation, product-service-systems, use of clean and renewable

energies, green chemistry, closed cycles of production, eco-efficiency, continuous

improvement, interconnected and efficient information systems, sharing of how-to,

learning from experience, valorization of the cultural attributes of a region or territory,

entre outros (Ghisellini, et al., 2016; Geissdoerfer et al., 2017; Tura et al., 2019; Sehnem

et al., 2019a, Sehnem et al., 2019b).

2.2 Ecological Modernization Theory (EMT)

The EMT consists of an eco-systematic innovation theory that seeks to achieve

industrial development and environmental protection through innovation, technology

development or modernity (Zhu, Sarkis, and Lai, 2012). Two dimensions of EMT can

influence the performance and practice of sustainable supply chains, namely new

pollution policy and technological innovation (Zhu, Sarkis, and Lai, 2012).

3

The EMT presents its foundations in sociology and more recently in

organizational studies (Spaargaren and Mol, 1992). It consists of an unsystematic theory

of eco-innovation and its instruments contribute to improving understanding of

industrial development and environmental protection through innovation or

technological development, the so-called modernity (Murphyand Gouldson, 2000).

The EMT has a theoretical framework that has been used to explain

environmental planning by governments and production systems of large manufacturers

(Murphy, 2000). The main elements addressed by the EMT are focused on the pollution

policy, which is the case of the evolution of regulations and policies and the negative

effect on environment and innovation. Another dimension addressed is technological

innovation, which suggests that manufacturers can become more involved in improving

operational and performance opportunities (Murphy and Gouldson, 2000). In terms of

new policies, EMT's emphasis is on choices and changes in environmental policies. In

this case, regulations and policies can motivate sustainable practices among

manufacturers (Zhu, Sarkis & Lai, 2012). In the case of this study, practices aimed at

the circular economy in the breweries. The promotion of practices aimed at institutional

arrangements and the legal structure of government contribute to promoting sustainable

supply chains (Kassolis, 2007).

The concept of environmental innovation in EMT's vision envisages

manufacturers to implement sustainable supply chains through production equipment,

design redesign, technological innovations (Zhu et al., 2012). EMT operates in a win-

win perspective (Zhu, Sarkis & Lai, 2012). Governments urgently need to preach

environmental practices that are beneficial to business performance.

Table 1 shows some studies on the themes of circular economics and EMT in

recent years so that it is possible to verify the contemporary academic interest about the

subjects addressed in our study.

Table 1 - Evolution of studies on circular economy and EMT

Aspects

Addressed

Description References

Circular

Economy

It is an alternative that seeks to convert waste into

useful and usable materials in production chains.

Dissociates the economic activity of the consumption

of finite resources. Focuses on the circularity of

materials, keeping products and materials in cycles of

use. Prioritize the use of renewable energy sources. It

produces a business model that equitably integrates

the economic, social and environmental dimensions.

It adopts the premise of eliminating waste and

pollution on principle. Regenerates natural systems.

Glöser-Chahoud, Pfaff, Walz,

and Schultmann, F.(2019)

Li, Zheng, Xiao, Yang and

Zhang (2019)

Diener, Kushnir and Tillman

(2019)

Unal and Shao (2019)

Cheng, Dong, Li and Li (2019)

Tunn, Bocken, van den Hende

and Schoormans (2018)

Flynn and Hacking (2019)

Civancik-Uslu, Puig, R., Ferrer,

L. and Fullana-i-Palmer (2019)

Tura, Hanski, Ahola, Piiparinen

and Valkokari (2019)

Ghisellini, Cialani and Ulgiati

(2016)

Tukker (2015)

Mirabella, Castellani and Sala

(2014)

EMT The EMT presents a set of theoretical elements that

seeks to overcome errors and failures of the structural

design of the industrial system, through an eco-social

restructuring of the basic institutions of the techno-

Sehnem (2019)

Jo, Seo and Min (2018)

Wang, Zhu and Guo (2018)

Delmonico, Jabbour, Pereira,

4

system. From the EMT perspective, modern science

and technology are central institutions for ecological

reform and are key institutions in the greening of the

economy. Reiterates the growing importance of

economic and market dynamics in ecological reform,

the role of innovative entrepreneurs and

entrepreneurs, entrepreneurs and other economic

agents as social agents catalyzing the ecological

restructuring itself, new players who join in and

interact in a complex way with state agencies in

charge environmental public policies.

Renwick and Thomé (2018)

Mensah, Ayarkwa, and Nani

(2018)

Salahuddin, Ali, Vink and Gow

(2018)

Huang and Li (2018)

Guo, Qu and Tseng (2017)

Barnes-Dabban, Van Koppen,

and Mol (2017)

Ahmed and Cokinos (2017)

Juntti, M and Downward (2017)

Zhu, Sarquis and Lai (2012)

Jorgenson and Clark (2012)

Bailey, Gouldson and Newell

(2011)

JOrgenson and Clark (2009)

York and Rosa (2003)

Ehrhardt-Martinez, Crenshaw

andJenkins (2002)

Mol and Spaargaren (2000)

Buttel (2000)

Spaargaren, and Van Vliet(2000)

Mol (2000)

Murphy andGouldson (2000)

Mol (1996)

Mol and Spaargaren (1993)

3. Research Procedures The research method is based on multiple case studies (Yin, 2010). To address

rigor and reliability, we followed the five stages reported by Eisenhardt (1989): research

question, case selection, data collection, analysis and replication.

Research questions: The study followed a protocol, whose questions follow:

How have companies developed circular economy practices within their operations?

Why have companies invested in circular economy practices?

Case selection: the cases involved companies affiliated with the Association of

Handcrafted Breweries and that evidences expertise in the adoption of sustainable

practices. Eisenhardt (1989) suggests that four to ten companies should be chosen for an

effective case study. Stuart et al. (2002), however, point out that one to three companies

may also be satisfactory depending on the purpose of the study.

The selected cases have the following characteristics: leaders in adopting

innovative practices, companies in which the circular economy is present in its

production chain, are adopters of integrated systems of cooperation with players in the

brewing sector. The selection criteria are described in the research protocol (in

appendix).

The first case chosen was about the most traditional / most recognized company

in the region for its handmade brewing products. This company is recognized in the

market as a reference in innovation in new products, new processes and strategies of

interaction with customers. It is led by a team specializing in craft beer. The

snowballing strategy was used, asking the respondents for recommendations on which

of the companies linked to the association fulfilled the selection requirements for this

research.

5

After the identification of each case, contact was made by telephone and / or e-

mail to the companies to present the scope, expected results of the study and the

strategy to be used to collect the data. The expected results of the study were the

following: mapping the profile of artisanal breweries with regard to engagement with

the circular economy and EMT. The companies were informed of the anonymity of their

trade names, names of interviewees and impartiality in the process of evaluation of the

data collected.

Case 1 - Artisan beer production for 10 years, with a monthly production of

approximately 70 thousand liters. It works with modern and automated equipment,

enabling an agile production system, efficient and low dependence on human capital.

Case 2 - Artisan brewing for 1 year. Volume produced of 500 liters month.

Outsourcing production with other companies, but manages quality and specificities of

brewed types of beer. Pass the revenue the manufacturing partner and accompany the

entire manufacturing process.

Case 3 - production of craft beer for 3 years. The entrepreneur worked for

several years in large companies in the industry and based on accumulated expertise, he

chose to become an entrepreneur. The monthly volume manufactured was not informed.

Case 4 - Artisan brewing for 5 years. Established the market.

Case 5 - has been in the market for approximately 5 years. It offers brewing

equipment, supplies, malt, yeast and also brewing courses and consulting. It did not

disclose the volume sold.

Case 6 - has been in the market for 2 years and 8 months. Offers brewing

equipment and supplies. It did not disclose the volume sold and billing.

Case 7 - has been operating for approximately 3 years. It offers inputs, with an

emphasis on consumers that buy small quantities and manufactures its craft beer. It did

not disclose the volume sold and billing.

Case 8 - has been operating for approximately 21 years. Provides supplies. It did

not disclose the volume sold and billing.

3.1 Data collection

A protocol was developed (in an appendix) and was used to conduct the

interviews in the mapped cases. The data was collected through a semi-structured

interviews. Secondary data were also collected on the companies’ website, technical

reports and the reports of the association of the sector that brings together the breweries

and suppliers of the sector.

Initial contact was with the principal/chief executive of the ventures. This, in

turn, indicated the respondent/research participant. Most interviews were conducted

face-to-face in meetings lasting between one and two hours.

Table 2 presents the list of respondents and the specificities of conducting

interviews. Table 2 - Specificities of the cases surveyed

N. Cases Companies Participants Time Interview

1 Craft Brewery CA01 Director

General

(GeDi01)

1h30min Face to

face

2 Craft Brewery CA02 Director

General

(GeDi02)

1h55min Face to

face

3 Craft Brewery CA03 Production

manager

(GePro03)

1h43min Face to

face

4 Equipment/Machinery FEM04 Director 1h25min Face to

6

Supplier General

(GeDi05)

face

5 Equipment/Machinery

Supplier

FEM05 Director

General

(GeDi06)

1h30min Face to

face

6 Supplier of inputs FIN06 Director

General

(GeDi07)

1h35min Face to

face

7 Supplier of inputs FIN07 Director

General

(GeDi08)

1h45min Face to

face

3.2 Data analysis

We used the content analysis technique (Bardin, 2011) and case analysis

(Eisenhardt, 1989) using the following steps: detailed interview transcription, concept

coding, data tabulation and analysis and interpretation of results. We identify practices

of circular economy and interpret them in each interview. They were then coded and

tabulated.

When the interviews were transcribed, we analyzed the data collected

qualitatively using the content analysis method (Bardin, 2011). The purpose of this was

to extract information that provides an understanding of the phenomenon and,

consequently, help the researcher to generate new knowledge. Data saturation was

partially achieved in some cases, since access to some managers was subject to time

constraints.

In cases where we did not identify data saturation in the first interview, we made

additional phone calls to the same interviewee or interviewed other managers of the

same organization. This procedure was used in the seven cases studied. After analyzing

each case, we performed a cross-analysis.

The constitutive categories and operational categories of the study are described

in Table 3.

Table 3 - Constituent definitions and operational definitions Constitutive Definitions Operational Definitions Authors

TME - Structure

- Knowledge

- Innovation

- Public policy

- Context

- Actors

- Technologies

Sarkis, Zhu and Lai (2011)

Mol and Spargaaren (2000)

Buttel (2000)

York and Rosa (2003)

Circular Economy - 5Rs

- Regenerate

- Optimise

- Share

- Virtualize

- Exchange

- Product Service System

Geissdoerfer, Vladimirova and

Evans (2018)

Geissdoerfer, Morioka, de

Carvalho and Evans (2018)

Lahti, Wincent and Parida

(2018)

Jabbour, Jabbour, Foropon, and

Godinho Filho (2018)

EMF (2015)

Tukker (2015)

4. Results

7

Circular economy can make brewing chains more sustainable. The chain has

been modernized from the point of view of sustainability. There are continuous

investments in emerging practices that meet the economic, social and environmental

assumptions. That generate value for the production chain and for the environment. That

they are socially inclusive and that they provide a differentiated status of production.

However, the concept of producing, with processes and forms that look at the entire

product life cycle and care about generating the smallest possible impact, still has a lot

of potential for expansion. A utilitarian perspective, insertion of product-service-system

mechanisms, sharing, lifecycle extension, new business models, 5R assumptions,

resource optimization bias still has potential to be exploited in cases analyzed.

CA01 The main practices of circular economy adopted by the organization are

associated with reuse, recycling, regeneration of materials whenever possible.

Rethinking current practices was also signaled as an essential element, especially for

waste combat and impulse consumption. The separation of materials to make feasible

the use was also a question indicated by the respondents. The concern with durability of

materials, through the acquisition of durable branded products, recognized by the

market for the quality of the materials used in their manufacture, has been emphasized

by the interviewee.

Malt leftovers are used for animal feeding by a rural property in the area. The

yeast biomass is dehydrated and transformed into beer yeast, being possible to be

commercialized as a probiotic. It is a highly protein food and can also be supplied in

cattle feed. However, there is still no structure for this use in the research

organization. Currently, this waste is disposed of in the sewer. It has high

fermentative potential and generates a lot of gas (another possibility of use). But

currently it is played in the equalization box and later in the public sewer. It is

associated with it soda is acid used in cleaning, to inhibit the formation of yeast. These

evidences indicate an opportunity for the insertion of practices of circular economy to

regenerate materials, optimize the use of resources and mobilize partnerships, through

the ecosystem of collaborative innovation and generator of opportunities to undertake

with the use of waste.

It is a food industry that requires a great deal of water and the manager knows

that the impact is great and on many issues he can not avoid because the water used has

to be cleaned. However, it reuses the hot water to clean the environment and equipment.

The water has a mixture of soda and then sanitization with acid which leaves the water

with ph neutralized, before releasing to the public network. "Thinking of the waste

from large companies that produce a lot, it would be interesting if this byproduct

had a more noble destination" (GeDi01).

An aspect to remain the company competitive in the sector, in the perception of

GeDi01 is the update at the level of technical knowledge in the industry. The

associations of breweries fulfill the role of instructing, professionalizing beer

production, taking care of practices of rigor, quality and reliability of the production

systems of the region. They provide incentives, competitions among members, regional

contests, in order to promote incentives to qualify brewing systems.

CA02 It adopts a differentiated business model, in which the factory itself does not

produce, but outsources this activity. A modern, innovative model that tracks every

detail of the process of acquiring inputs, manufacturing and even passing on the revenue

8

of the desired product. GeDi02 highlights that the market is very welcoming and

supports innovations, new flavors of craft beers and differentiation from other brands in

the industry.

The products generated in the factory, for example, malt bagasse are intended

for animals from nearby farms. The yeast is reused up to 5 times and the water is treated

right there in the small season. It is evaluating the possibility of using sunlight to

produce energy, to install tanks and to reuse water more efficiently.

The brewing culture is becoming a reality in the city. The professional courses

promoted by the association of the sector, the constant technical capacities of which the

entrepreneur participates, make the exchange of information constant., emphasized

GeDi02.

CA03

Focuses on the expertise of regenerating materials. It adopts traditional craft

production model. The circular economy practices adopted did not give much

emphasis.

The use of water is a reality in the company. The input procurement system

follows the same assumptions of CA01, including working with the same suppliers.

FEM04 Engagement with the circular economy occurs in various ways, rainwater

harvesting, reuse of breweries, natural heating of water through sunlight. "I think the

whole brewing industry should be more sustainable, it would be of benefit both in

health and in the generation of more jobs" (GeDi05). In addition, there is still much lack

of information about craft beer. The industry association seeks to contribute by offering

training courses on brewing technology. But these practices still need to be more widely

disseminated.

FEM05

Water reuse is carried out in the company. However, it understands that it is

possible and necessary to focus on more practices that can contribute to making

the system more sustainable. Alternatives and practices can be carefully evaluated to

generate an extra attraction for the venture. Above all, in order for it to fulfill its social

commitment. As well, to care for the efficient use and management of the natural

resources that it mobilizes to start up its system of action.

FIN06 It is an enterprise that focuses on the continuous improvement of its practices. It

emphasizes modern, innovative practices and is considered a leader in the industry.

In the perception of GeDi06 the residue of the beer is still little used. It is

necessary to instruct people how to do it and to map markets that can absorb this by-

product. "The great majority ends up being discarded" (GeDi06). In addition, the

interviewee stresses that water reuse already occurs, but there are several ways to make

it more sustainable. There is no incentive for this to happen.

FIN07

Focuses on the variety of inputs offered to customers, on the agility of delivery

and on the quality of the materials marketed. It adopts as premises to facilitate the

production of beers in smaller scales. It was the first company to offer its customers the

dehydrated brewer's yeast, of great practicality in the handling.

9

From the perception of the interviewee, many residues of the sector are destined

for animal feeding of livestock. Homemade brewers usually throw in the common trash,

since they are small volumes of waste generated. This shows an opportunity for

generating creative alternatives for the use of these wastes.

The yeast can be reused in the production of esthetic products highlights

(GeDi07.) Some breweries hire third parties who collect these remains of yeast and

reuse it claims GeDi07.More especially, of greater volume, the bagasse of malt

highlights GeDi07.Reused for recipes of cakes, breads and the like, as well as, it is also

transformed into animal feed (GeDi07).

4.1Cross-case analysis

Different sources of data collection were used, namely, companies website,

technical reports and the association that congregates the breweries and suppliers of the

sector.

Table 4 presents the main practices of circular economy and interfaces with

EMT for each of the cases Table 4 - Practices of circular economy and EMT

Types of Practices CA01 CA02 CA03 FEM04 FEM05 FIN06 FIN07

Water reuse * * * * * * *

Reuse * * * * * * *

Recycling * * * * *

Regeneration of materials * * * * * *

Rethink Impulsive Consumption * * *

Combating waste * * *

Separation of waste * *

Emphasis on durability * * *

Update on technical information

and production technology

* * * * *

E-commerce * * * * *

Online product sales platform * * * * *

Innovation in biological materials * *

Innovation in processes * * *

Waste of beer turns into animal

feed

* * *

Outsourcing * *

Innovative packaging design *

Use of clean energies *

Custom Manufacturing Model *

Entrepreneurship *

Create value with what's in the

company

*

Agility of delivery *

Variety of products with prompt

delivery

*

The adoption of circular economy practices is still incipient. There are initiatives

on waste management, but the interviewees themselves recognize that there are more

opportunities to generate value from waste than they have utilized.

Class entities play a relevant role in the adoption of circular economy practices,

and they were legitimized by the researched companies. They disseminate information

and generate opportunities for craft breweries. They contribute to providing a collective

and continuous learning for the associates/affiliates.

Any company studied informed about environmental regulation. Brazil has a

national solid waste policy that is considered a global reference and as such offers a set

10

of elements and infrastructure to provide social and environmental benefits to the

economy.

The circular economy and the ecological modernization in the cases analyzed

created internal engagement by means of the class entities, to stimulate investments in

sustainable practices; the entities of the sector stimulate the collaborative, creative and

co-creation process; the process of producing artisanal beer is interactive and requires

constant investment in learning, innovation.

The internalisation of the economic externalities of the productive and

consumption processes, associated to the creation of value by the circular economy

through better use of the resources, contributes to the economization of the ecology and

is one of the mechanisms suggested by the EMT (Buttel, 2000). However, based on the

EMT premises (Jo, Seo and Min, 2018), the opportunity arises for the articulation of

environmental standards in economic processes by industry associations and class

entities, insurance companies operating in the segment, credit institutions, consumers

industrial, and certification organizations.

It seems that the companies studied have pursed the adoption of circular

economy practices, but the full potential of the use of biological cycles within their

processes of production has been hampered by the lack of external policies and clear

governance towards circular economy. Thus, pollution prevention policies may be an

important driver for organizations be able to advance in circular economy practices and,

at the same time, the organizations understand the perspective win-win between meeting

environmental regulation and improving economic and environmental performance.

5. Final considerations

Studies on circular economy practices and EMTs are original. No research has

yet been mapped in the literature that associates these two themes. Therefore, this article

identified the practices of circular economy adopted within leader companies of the

brewery sector in Brazil and the reasons for such adoption. Interviews were conducted

with top managers of those companies, and the main findings were:

The main practice adopted by the companies studied were reuse of water;

The interviewees highlighted that there is room for adopting more

practices of circular economy, however, there are factors that have

hampered them, such as, lack of incentive and lack of infra-structure;

The class association of the brewery sector has helped the brewery

companies to share best practices and to offer trainings to them.

It seems that the companies studied have pursed the adoption of circular

economy practices, but the full potential of the use of biological cycles within their

processes of production has been hampered by the lack of external policies and clear

governance towards circular economy. Thus, pollution prevention policies may be an

important driver for organizations be able to advance in circular economy practices and,

at the same time, the organizations understand the perspective win-win between meeting

environmental regulation and improving economic and environmental performance.

The conclusion of the study is that the principles from EMT, such as the

development of an institutional environment towards corporate environmental

proactive, could enhance the adoption of circular economy practices within the brewery

sector. Despite of the class association of the brewery sector has supported the

companies studied to move forward in other matters, a clear governance is necessary to

guide organizations towards circular economy practices.

11

The formulation of a regulatory framework through a participative, interactive

and decentralized process, capable of delegating responsibilities and incentives to all

entities, to contemplate a tax restructuring for the alcoholic beverage sector, could

corroborate to create a new standard of action for the sector.

Research limitations are coverage only of organizations located in an emerging

country. A second limitation is that the data saturation was partially achieved in some of

the analyzed cases, especially by the limitation of the time period surveyed (transversal

research). The longitudinal evaluation is timely for circular economy surveys.

As suggestions for future research, we recommend comparing the results with

mapped evidence in emerging countries and compiling historical indicators that can

measure the effective performance of the circular economics practices reported in this

study.

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Research Protocol

1. Purpose of the research

Analyze how companies develop circular economy practices in their supply chains, in

order to generate impacts on ecological modernization and on adherence to emerging

sustainable practices

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2. Research questions

How do companies develop circular economy practices in their supply chains in order

to generate impacts on green modernization and adherence to emerging sustainable

practices?

How are business models circulated?

Why do companies invest in emerging circular economy practices?

3. Theoretical basis

Business Models of Circular Economy (EMF, 2015; Geissdoerfer, Vladimirova and

Evans, 2018, Geissdoerfer, Morioka, de Carvalho and Evans, 2018)

EMT (Sarkis, Zhu and Lai, 2011, Mol and Spargaaren, 2000, Buttel, 2000 and York and

Rosa, 2003)

• Triangulation: entities of congregation of the sector: Association of Handcrafted

Breweries.

6. Data analysis

• Define search codes based on literature review.

• Analyze codes according to the search goals.

• Cross-case analysis linking theory.

Mapped Data on Website/Technical Reports

- Profile of the enterprises surveyed;

- Portfolio of products offered;

- History of the enterprise;

- Communication of the sustainable practices adopted by the enterprise;

- Types of practices of circular economy adopted by the enterprise;

- How the company prepares for continuous improvement in sustainability issues;

- Production system adopted and its specificities;

- Common challenges

- Existence of partnerships/collaboration ecosystem