CIRCULAR ECONOMY & SUPPLY CHAIN

PERFORMANCE:
A CASE OF ORIENT ENERGY SYSTEMS PRIVATE
LIMITED

SUPERVISOR: SIR SAJID NAZIR

GROUP MEMBERS:
JAYA DEVI (20171-22409)
MUHAMMAD ZOHAIB (20211-29751)
MUHAMMAD SAQIB (20201-27475)
FAIQ MULLA (20191-25291)
MIRZA A.BASIT (20191-25577)
TABLE OF
CONTENTS
Problem Statement

Background

Introduction

Obejectives

Literature Review

Conceptual Framework

Research Methodology

Data Analysis and Results

Conclusion
PROBLEM STATEMENT
COVID-19 has devastating impact on supply chain network
and its sustainability. Organizations has realized the
importance of supply chain and trying hard to improve it.
But the recent economic conditions of the country are not
in favor of many firms.
Economical disorders, currency devaluatinon, inflation,
port congestion, crises of essential resources/components,
procurement of spare parts, letter of credit issues are
some of the major problems.
BACKGROUND
Current situation regarding currency devaluation, inflation, port
congestion, procurement of spare parts, letter of credit issues are
some of the major issues, companies are facing today.
Survival for industrial organizations is rapidly fallen during few
months. The supply chain disruption in terms of production and sale
is drastically down.
Many firms were forced to close due to unavailability of raw
materials.
In this scenario, business community has started thinking how to
address the supply chain disruption during such crisis.
INTRODUCTION
Here comes the concept of the circular economy.

An economic system based on the reuse of materials or products.

It has the potential to modify business models and transform the

strategies (Ocicka & Wieteska, 2017).

It includes the concept sharing available resources be it raw

material, spare parts or any material.

This sharing can be the renting of goods, can be the exchange of

goods or can be the buying of goods (Hamari et al., 2016).

 OBJECTIVES
To review the supply chain practices of Orient
energy systems.

To identify the problems, they are currently facing due

to restrictions on imports and unavailability of spare
parts.

To provide feasible study that how circular economy can help

the organization gain sustainability and support green
practices.

RESEARCH QUESTIONS

What are the supply chain practices of Orient

energy system?

What are the problems, they are currently facing due to

restrictions on imports and unavailability of spare
parts?

How circular economy will help the organization?

 COMPANY
BACKGROUND
Our Philosophy

Orient Energy System (OES) is one of the leading engineering

companies of Pakistan , incorporated in 1996 by a engineer group
with an aim to provide seamless support to their customers in the
area of power generation.
World-renowned brands,

they are working wth:

INNIO Jenbacher, Cummins, Siemens Gamesa, Ingersoll
Rand, Shanghai Electric, Bosch, Grundfos, Aquamach,
SANY uetc. have chosen OES as their local distributors/
partners /agents in Pakistan.

CONCEPTUAL
FRAMEWORK
HYPOTHESES:
H1: Supply chain governance has an impact on the supply chain performance.
H2: Supply chain governance has an impact on circular economy.
H3: Supply chain performance has an impact on the Sustainable supply chain
performance.
H4: Circular economy has an impact on the Sustainable supply chain performance.
H5: Supply chain governance has an impact on the Sustainable supply chain
performance.
H6: Supply chain performance has an impact on the circular economy.
H7: Supply chain performance mediates on the relationship between the supply
chain governance and sustainable supply chain performance.
H8: Circular economy mediates on the relationship between the supply chain
governance and sustainable supply chain performance.
RESEARCH
METHODOLOGY:
RESEARCH
METHODOLOGY:
PHILOSOPHY OF RESEARCH:
This study is based on positivism, a philosophy.
The roots of positivism lie in the natural sciences, emphasizing
the scientific testing of hypotheses and seeking logical or
mathematical proof based on statistical analysis.

RESEARCH APPROACH:
Our research approach is Deductive as we are going from
general studies to specific one.
RESEARCH
METHODOLOGY:
RESEARCH METHOD:
In this research both primary and secondary research have
been used hence mixed methods are used.

RESEARCH STRATEGY:
Our research study is survey based as well as case study based. It is
survey based as our primary data is from responses which we
collected through questionnaires targeted to supply chain
professionals.
On the other hand, we have started our research with secondary
data in form of literature and thorough research on previous
available journals, articles and case studies.
RESEARCH
METHODOLOGY:
TIME HORIZON:
Since we have done this research within the given time period
of one semester, our time horizon is Cross-sectional.

DATA ANALYSIS:
We developed our hypothesis with help of the secondary research
in form of articles and case studies and in order to test the
hypothesis we have used questionnaire.
DESCRIPTIVE
STATISTICS

Composite
Reliability:
AVE of a variable exceeds
0.5, Therefore, based on
these criteria, the data can
be deemed reliable.
HTMT RATIO:
As our HTMT ratio is below 0.9 that means in our data discriminant validity is
established among all the reflective variables Circular Economy, Supply Chain
Governance, Supply Chain Performance and Sustainable Supply Chain Performance.
COLLINEARITY: INNER VIF

There is no any Collinearity exist in our model.

PATH COEFFICIENTS
All the hypotheses are statistically significant as these are having P-value of less than
0.05 whereas only H3, H5 and H7 is found statistically insignificant
COEFFICIENT OF DETERMINATION
R square values of Circular Economy, Supply Chain Performance and
Sustainable Supply Chain Performance are greater than 0.2.
We can assess that there is positive strong variability caused in Dependent
variable caused by the movement of our independent variable.
SEM MODELLING ANALYSIS

The findings indicate

that the model fits the
data adequately
OVERALL FINDINGS:
All hypotheses, except H3, H5, and H7, are statistically significant.
Supply chain governance impacts supply chain performance and circular
economy (H1 and H2 accepted).
Supply chain performance does not directly impact sustainable supply chain
performance (H3 rejected).
Circular economy impacts sustainable supply chain performance (H4 accepted).
Supply chain governance does not directly impact sustainable supply chain
performance (H5 rejected).
Supply chain performance impacts circular economy (H6 accepted).
Supply chain performance does not mediate the relationship between supply
chain governance and sustainable supply chain performance (H7 rejected).
Circular economy mediates the relationship between supply chain governance
and sustainable supply chain performance (H8 accepted).
LIMITATIONS:
Limited accessibility of information on the impact of the Circular
economy on supply chain performance.
Small sample size for data collection from professionals in the
service industry.
Potential need to include more variables in the model for further
testing.
Difficulty in isolating the impact of the circular economy from other
factors influencing supply chain performance.
Variability in performance measurements across organizations and
industries.
MANAGERIAL IMPLICATIONS
Collaborative networks and partnerships
Extending product lifespan
Reverse logistics
Supply chain optimization
Customer engagement and education
Regulatory compliance and standards:
RECOMMENDATIONS
Industries in Pakistan should consider adopting the

concept of the circular economy for sustainability

and reduce import dependency.

Orient Energy Systems should focus on improving

supply chain governance mechanisms and consider

embracing the idea of circular economy.

Orient Energy Systems can create a virtual inventory

and support non-exporting firms by adding their

spare parts to the importing list of exporting firms.

RECOMMENDATIONS
Emphasize cooperation and collaboration between

stakeholders and encourage other service providers

to adopt the concept.

Utilize technology to support the circular economy

approach.

Develop clear policies and procedures to minimize

the risks associated with the circular economy