Circular e‐waste ecosystems in necessity‐driven contexts: The impact of formal institutional voids

Milou Derks; Christina Bidmon; Francesca Ciulli

doi:10.1002/bse.3652

journal article Open Access Jan 24, 2024

Circular e‐waste ecosystems in necessity‐driven contexts: The impact of formal institutional voids

Milou Derks

Christina Bidmon Francesca Ciulli

Business Strategy and the Environment Vol. 33 No. 4 pp. 3733-3747 · Wiley

View at Publisher Save 10.1002/bse.3652

Abstract

AbstractRecent studies suggest an ecosystem view is most appropriate for understanding the impact of institutional voids on entrepreneurial activities. Expanding the focus to the entrepreneurial ecosystem is crucial for tackling complex low‐ and middle‐income countries' (LMICs) environmental challenges, as the transition to circular e‐waste management, which are heavily impacted by the institutional environment. Moreover, most entrepreneurs in LMICs engage in circular practices out of economic necessity, rather than environmental reasons. However, scholars have overlooked the effects of institutional voids on entrepreneurial ecosystems' potential to grow and realize environmental benefits. This study investigates how formal institutional voids impact the evolution of circular ecosystems in necessity‐driven contexts in LMICs. We study the evolution of a circular e‐waste ecosystem in Kenya and uncover two key phases: emergence and growth. We show that formal institutional voids' impact differs across phases; regulatory and contract enforcement voids create opportunities for informal and private actors to establish e‐waste collection, repair, remanufacture, and recycle businesses, thereby facilitating the emergence of the circular ecosystem. However, labor market, capital market, product market, regulatory, and contract enforcement voids hamper its growth. Specifically, the lack of skills, equipment, guidelines, and financial incentives hinders advanced repairs and remanufactures and limits recycling opportunities, while the lack of formal e‐waste infrastructure increases illegal dumping and negatively impacts human health and the environment. We develop propositions and a phase model to explain the impact of formal institutional voids on the evolution of circular e‐waste ecosystems and the realization of environmental benefits in necessity‐driven contexts.

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Details

Published: Jan 24, 2024
Vol/Issue: 33(4)
Pages: 3733-3747
License: View

Authors

M

Milou Derks

Department of Industrial Engineering and Innovation Sciences Eindhoven University of Technology Eindhoven Netherlands; TNO – Netherlands Organisation for Applied Scientific Research The Hague Netherlands

C

Christina Bidmon

Copernicus Institute of Sustainable Development, Faculty of Geosciences Utrecht University Utrecht Netherlands

F

Francesca Ciulli

Department of Organization Studies, Tilburg School of Social and Behavioral Sciences Tilburg University Tilburg Netherlands

Cite This Article

Milou Derks, Christina Bidmon, Francesca Ciulli (2024). Circular e‐waste ecosystems in necessity‐driven contexts: The impact of formal institutional voids. Business Strategy and the Environment, 33(4), 3733-3747. https://doi.org/10.1002/bse.3652

Circular e‐waste ecosystems in necessity‐driven contexts: The impact of formal institutional voids

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