A multi-level tool to support the circular economy decision-making process in agri-food entrepreneurship

Abstract

PurposeThe present study is aimed at developing a multi-level framework for assessing circularity in agri-food industries by providing the user with a step-by-step approach and selecting a customized set of indicators capable of accurately assessing the circular economy (CE) level.Design/methodology/approachThe framework is composed of four stages. In the first stage, a CE theoretical model based on operations, product and services, culture, organization and ecosystem criteria has been implemented and adapted to the agri-food sector. In the second stage, users are required to collect a set of indicators capable of measuring each criterion. In the third stage, a weight is assigned to each indicator using analytical hierarchy process (AHP). Lastly, a geometric multi-criteria decision-making (MCDM) model, called axial distance-based aggregated measurement (ADAM) model, is used to normalize, assess and aggregate the results and produce final scores for the different alternatives to be ranked based on their final circularity scores.FindingsThe model can be a useful tool to support corporate decisions in the CE, making entrepreneurs aware of their starting level. It indicates the extent to which companies are implementing circular business models across different dimensions and, thus, where they are still lacking.Originality/valueBeyond the attempts to measure the circularity of corporate performance from a purely environmental perspective, the study adopts a holistic view, considering the complexity and disruption of all the principles of the CE.