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Original Articles

Implementation of a real option in a sustainable supply chain: an empirical study of alkaline battery recycling

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Pages 1268-1282 | Received 01 Dec 2008, Accepted 01 Oct 2012, Published online: 21 Jan 2013
 

Abstract

Green supply chain management (GSCM) has emerged as a key approach for enterprises seeking to become environmentally sustainable. This paper aims to evaluate and describe the advantages of a GSCM approach by analysing practices and performance consequences in the battery recycling sector. It seeks to integrate works in supply chain management (SCM), environmental management, performance management and real option (RO) theory into one framework. In particular, life cycle assessment (LCA) is applied to evaluate the environmental impact of a battery recycling plant project, and life cycle costing (LCC) is applied to evaluate its economic impact. Firms, also understanding the relevance of GSCM, have often avoided applying the green principles because of the elevated costs that such management involved. Such costs could also seem superior to the potential advantages since standard performance measurement systems are internally and business focused; for these reasons, we consider all the possible value deriving also by uncertainty associated to a green project using the RO theory. This work is one of the few and pioneering efforts to investigate GSCM practices in the battery recycling sector.

Additional information

Notes on contributors

Federica Cucchiella

Federica Cucchiella, PhD, is an Aggregate Professor of Industrial Engineering at the University of L’Aquila, Faculty of Engineering. She has finalised her studies with a PhD in Management Engineering at the Department of Economics and Technology in Republic of San Marino University. Her principal area of research regards supply chain management, real option and green supply chain. The results of her researches are published in relevant international journals, book chapters and refereed conference proceedings. She is a highly cited author in her scientific field. She has participated in several research projects on natural resources and supply chain management. She has organised a number of international and national conferences mainly in the field of supply chain and green supply chain management. She has received scholarships and prizes for academic excellence from various academic institutions and foundations.

Idiano D’Adamo

Idiano D’Adamo was born in Vasto, Italy, in 1983. He receive the Management Engineering degree in February 2008 and the title of PhD in Electrical and Information Engineering, both from the University of L'Aquila. He is the author of several publications and his main research activities are renewable energy management and waste management.

Massimo Gastaldi

Massimo Gastaldi is an Associate Professor in Managerial Engineering at the University of L’Aquila where he also teaches Economics and Analysis of Financial Systems. He is Editor-in-Chief of the International Journal of Management and Network Economics. His principal area of research concerns with networks regulation, green supply chain and real options.

S.C. Lenny Koh

S.C. Lenny Koh, BEng (Hons), PhD, is an Associate Dean, Chair Professor in Operations Management, Founder and Director of the Logistics and Supply Chain Management (LSCM) Research Centre, and Director of Faculty’s Centre for Energy, Environment and Sustainability (CEES), at The University of Sheffield Management School, UK. She is also the co-founder of the Supply Chain Management and Information Systems (SCMIS) Consortium, a global network of leading academic and practitioners driving research and knowledge exchange on supply chain and information systems. Professor Koh’s role involves leading alumni, external relations and championing partnerships with industry, government and other top institutions. She is a member of the strategy executive leadership board.

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