Production Planning & Control

The Management of Operations

ISSN: 0953-7287 (Print) 1366-5871 (Online) Journal homepage: https://www.tandfonline.com/loi/tppc20

Circular economy in the wine chain production:

maturity, challenges, and lessons from an
emerging economy perspective

Simone Sehnem, Nelson Oly Ndubisi, Daniela Preschlak, Rógis Juarez

Bernardy & Silvio Santos Junior

To cite this article: Simone Sehnem, Nelson Oly Ndubisi, Daniela Preschlak, Rógis Juarez
Bernardy & Silvio Santos Junior (2019): Circular economy in the wine chain production: maturity,
challenges, and lessons from an emerging economy perspective, Production Planning & Control,
DOI: 10.1080/09537287.2019.1695914

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PRODUCTION PLANNING & CONTROL
https://doi.org/10.1080/09537287.2019.1695914

Circular economy in the wine chain production: maturity, challenges, and

lessons from an emerging economy perspective
Simone Sehnema,b , Nelson Oly Ndubisic , Daniela Preschlaka
gis Juarez Bernardya
, Ro and
Silvio Santos Juniora
a
Department of Management, Universidade do Oeste de Santa Catarina, Chapec
o, Brazil; bDepartment of Management, Universidade do Sul
de Santa Catarina, Chapec
o, Florian
opolis, Brazil; cDepartment of Management, Qatar University, Doha, Qatar

ABSTRACT ARTICLE HISTORY

The purpose of this study is to analyze how the maturity stages of the adoption of circular economy Received 2 March 2019
practices are related to the circular economy business models. The study highlights a case study in Accepted 15 June 2019
which original datasets were collected through an in-depth interview within 10 analysis units and sec-
KEYWORDS
ondary sources. The case study examines the Santa Catarina Association of Fine Wine Producers of
Agri-food supply chain;
Height (ACAVITIS), a group that includes 28 associates. The relationship identified between the matur- sustainable initiatives;
ity stages and the practices of circular economy provides evidence that will fulfil the premises of the circular economy; Brazil
ReSOLVE Model and the 5Rs. Contributions/value: These evidences contribute to highlight the follow-
ing contributions of the study: (i) circular economy has relation with stages of maturity of the analysed
business models; (ii) advanced stages of maturity, that is, between 3 and 5 are interfaced with a var-
iety of practices of circular economy; (iii) duration of the enterprise, level of education and portfolio of
manufactured products do not have a strong direct relationship with the engagement with the circu-
lar economy; (iv) the practices of circular economy are already established in the analysed units of
analysis, but they demand optimisation and management to make them more efficient and that can
impact even more positively in the family wine production model. It is suggested that new studies be
carried out to confirm and generalize the findings of this research, especially those that test hypothe-
ses evidencing the relationship between circular economy practices and maturity stages of busi-
ness models.

1. Introduction sustainable production systems to be in place (Poltronieri,

The sustainability of food and drink supply chain manage-
ment has attracted the attention of a variety of stakeholders
(Govindan 2018), but it has been understudied by scholars in
production and operations management (Mangla et al.
2018). However, sustainability is considered a key element of
any contemporary supply chain (Govindan 2018; Bai, Sarkis
and Dou 2017). It is estimated that more than 800 million
people in the world do not have enough food for a healthy
and active life (FAO 2014). The world population is expected
to increase further and to exceed 8 billion people by 2024,
surpassing 9.5 billion in 2050 (UN, 2012), making a pressing
system for global sustainability. According to Brazilian real
data for 2017–2018 (Brasil 2018), Brazil 2030 (Vis~ao 2030/
2018) and the GDP growth assumptions of 2.5% per year for
the period 2019–2020 (Repu
blica Federativa do Brasil 2019),
current economic data suggests that the nation’s GDP will
grow between 1 and 3% during the period 2019–2030 (IFI,
2017). Further, IBGE (2018a) predicts that Brazil’s population
will grow by 11.42% by 2047.
This projected scenario demands food to nourish the
greater population, and that food burden requires
Ganga, and Gerolamo 2018). Providing healthy and nutritious
food employs various techniques, production technologies,
and efficient industrialization strategies, which often go
through the circular economy. Considering the constraints
on access to natural resources, which are finite (Goyal,
Esposito and Kapoor 2018; Miemczyk, Howard, and Johnsen
2016), it is desired that fewer virgin materials be placed in
the economy (Sehnem and Pereira 2019). Protecting the
future and increasing resource efficiency are considered
goals of strategic importance to organizations (EMF 2015b).
Gradually, national policies, companies, and consumers are
adapting to this new approach (Kalmykowa, Sadagopan, and
Rosado 2018), and started taking sustainability and cleaner
production seriously (Subramanian and Gunasekaran 2015).
In Brazil, the production of grapes is present in several
states. According to the Brazilian Wine Institute (IBRAVIN
2019), the area of wine production in Brazil amounts to 79.1
thousand hectares, divided mainly among six regions. There
are more than 1100 wineries scattered throughout the coun-
try, most of them installed in small properties (average of 2
hectares of vineyards per family). Preliminary data from the

CONTACT Simone Sehnem simonesehnem_adm@yahoo.com.br Avenue Nereu Ramos, 3777D, Zip code 89813-000, Neighborhood Semin
ario, Chapec

o,
Santa Catarina, Brazil
This article has been republished with minor changes. These changes do not impact the academic content of the article.
ß 2019 Informa UK Limited, trading as Taylor & Francis Group
2 S. SEHNEM ET AL.
Agricultural Census of 2017 (IBGE 2017) indicate that Brazil
had 73,926 agricultural establishments that produced table
grapes and 35,178 establishments that produced grapes for
wine and juice. In this context, the South region owned 77%
(56,934) of the establishments dedicated to the cultivation of
table grapes and 92.4% (35,519) of the establishments dedi-
cated to the production of grapes for wines and juices.
According to Embrapa (2016), the micro-regions Caixas do
Sul, Vacaria, Southeastern Sierras, Southern Campaign and
Central Campaign in the Rio Grande do Sul, and Joaçaba,
Campos de Lages, Tubar~ao and Criciu
ma in Santa Catarina
are the in which the average share of viticulture in the
income of rural properties reaches up to 80% of the total
income of the property (Southeast Sierras 80.6%). Associated
with the activity, some regions are considered wine clusters
and, among the several associated activities, tourism has
become of significant economic relevance, as is the case of
Serra Gau
cha (Microregion of Caxias – RS), Serra Catarinense
(Microregion of Campos of Lages) and mid-west of Santa
Catarina (Microregion of Agua Doce, Pinheiro Preto,
and Videira).
The production of grapes and winemaking are vital con-
tributors to the Brazilian economy. But the expressiveness of
winemaking activity in Brazil, its wide variety of manufac-
tured by-products, and its potential for circularity of materi-
als, has not yet been mapped. Hence, the absence of an
investigation into Brazil’s wine chain has motivated this
study. In the context of Brazilian agribusiness, the production
of grapes and wine has a prominent position in the fruit seg-
ment. Data from the Systematic Survey of Agricultural
Production indicate that in 2018 the area planted with
grapes in Brazil occupied an area of 75,481 hectares, and
produced 1,592,242 tons (IBGE 2019). There are 15,162 rural
establishments that dedicate themselves to the production
of grapes and wine in Brazil, according to the official statis-
tics of the country (IBGE 2018b).
According to Mello (2013), the states of Rio Grande do Sul
and Santa Catarina represent around 95% of the volume pro-
duced and marketed in fine and sparkling wines in Brazil.
Considering the relevance of the productive activity to the
economy of southern Brazil, this study analyzes how the
stages of maturity of the adoption of circular economy prac-
tices are related to business models of the circular economy.
The selection criteria of the case follow the premises of Yin
(2010), which recommends selecting the relevant case or the
discrepant case. For this study, the criteria used consist of
the relevant case, expressed by the sales of the units of ana-
lysis, the time of engagement with the productive activity,
the portfolio of diversified products, the leadership for adher-
ence to new technologies, recognition in the wine sector,
receipts of awards for marketed products, and the ability to
innovate and adhere to new processes and practices in
the industry.
The gaps in the literature that this study intends to fill are
associated with the presentation and discussion of represen-
tative cases that show how circular economy can be opera-
tionalized in companies. The study by Sehnem (2018) shows
that circular economy is an embryonic stage in the Brazilian
context. There are still few studies that have been published
on the subject, totalling only 16 papers published in national
databases, such as Spell, BDTD, Semead, Engema, Anpad,
and Simpoi. At the international level, there is already a
greater expansion of studies on circular economics. There are
more than two thousand results found in the Scopus data-
base. Therefore, our study accepts the recommendation
given by several previous ones, like Geng et al. (2013),
Sehnem 2019, Sehnem, Campos et al. (2019), Lazarotti et al.
(2019) and Sehnem, Jabbour, et al. (2019), to develop new
case studies, to understand the specificities of operationalisa-
tion of the circular economy. It is a problem experienced by
the industry, to understand the dynamics of operationaliza-
tion of circular economy practices, considering the institu-
tional context of an emerging country. And, the
implementation of emerging, innovative, sometimes disrup-
tive practices that require particular experiences for the full
separation of technical and biological materials, as well as
the constant circularity of materials. In this context, the fol-
lowing research question emerges: how do the maturity
stages of the adoption of circular economy practices relate
to circular economy business models?
One mechanism that may contribute to realizing these
economies is an adherence to lean production (Stålberg and
Fundin 2018), that is, the manufacture of goods with less
need of materials. Lean production reduces waste in both
manufacturing and commerce, and it reduces the amount of
products and goods that are discarded as services (Heyes
et al. 2018). The result is an increase in the number of goods
that are available to be acquired without the need of shar-
ing, renting, or leasing (EMF 2015b). In the meantime, the
ReSOLVE typology describes a set of strategies for greater
efficiency, to regenerate, optimize, exchange, virtualize, cycle
and share materials (Grower and Schroeder 2016). The asser-
tion by Agrawal, Atasu and Wassenhove (2018) that the cir-
cular economy movement is an opportunity to generate
impacts for sustainability, especially, generating new oppor-
tunities for research in operations management, are also con-
sidered justifications for this study.
Although the recycling of waste is a relevant alternative
(Genovese et al. 2017), it is considered costly and it requires
a long cycle before the materials are reintroduced to the
production chains (Liu et al. 2016). It is more strategic for
organizations to create a plan to prevent waste generation
and to establish a business structure that allows them to
extract competitive advantage from this new structural
model of organizational functioning.
Circular economy business models are ways of doing busi-
ness that keep products and materials in use, as long as pos-
sible, in order to extract their maximum value. It is a new
research frontier in sustainability (Chen, Zhou and Zhu 2017).
There are several business models described in the literature,
as well as practices and principles that support the opera-
tionalization of the circular economy, see for example, 3Rs
(Ranta, Aarikka-Stenroos, and M€akinen 2018); 4Rs (Allwood
et al. 2011); 5Rs (Lacy and Rutqvist 2015); 9Rs (Buren et al.
2016); 10Rs (Kirchherr et al. 2017); the ReSOLVE framework
(EMF 2015b); circular supply (Geisendorf and Pietrulla 2018);

resource recovery (Geissdoerfer et al. 2018); extension of the
product life cycle (Aboulamer 2018; Geissdoerfer et al. 2017);
sharing platforms (Dentchev et al. 2018); product as a service
(Tukker 2015); and/or pay-per-use (Bocken et al. 2018). In
sum, the nominated business models essentially feature the
characteristics mapped by Lu €deke-Freund, Gold and Bocken
(2018) when analyzing 26 Circular Economy Business Models
cited in the literature. The mapped patterns include repair
and maintenance, reuse and redistribution, reform and rema-
nufacturing, recycling, cascading, reuse, and business models
using organic raw materials.
Thus, the main contribution of the study is to show a
comprehensive structure of circular business models and
maturity levels as they are applied to Brazil’s wine context.
This approach allows testing of the five propositions
described in this study and identifying strategies and practi-
ces to implement the circular economy in the grape industry.
Ideally, this approach will construct a regenerative economy
in a natural environment. The study emphasizes a combined
view of three main aspects: circular economics practices,
business models, and maturity levels. It also emphasizes that
support of all the stakeholders who work along the wine
production chain, including the articulation players of the
sector such as the association that congregates the analyzed
analysis units, are fundamental to implement the concept of
large-scale circular economy. The results evidenced by this
study also identify new paths for future research and practi-
ces in the field of circular economy.
In order to fulfill the objectives of the study, Section 2
describes theoretical arguments to confirm the propositions
that will be tested later. It presents current research on circu-
lar economics, business models, and maturity levels. Section
3 describes the research methodology in detail. Section 4
presents and discusses the empirical results of the study
under the aegis of the literature. Section 5 highlights the
final considerations and is followed by references.
2. Theoretical background: the circular economy
The relationship between industry and the environment is
crucial to the performance of industrial businesses (Lieder
and Rashid 2016; Mangla et al. 2018). The service sector
plays an instrumental role in changing the economy, associ-
ated with its strategic position between manufacturers and
users (Heyes et al. 2018; Ndubisi and Al-Shuridah 2019).
Ndubisi and Al-Shuridah (2019) present empirical evidence
showing the strong connection between the quality of the
environment and firms’ strategic emphasis; arguing that
some strategies expose the environment and its resources to
vulnerabilities, and others help to sustain them. Firm size
also has great influence when companies decide to integrate
their systems, but it also influences the depth of such inte-
gration (Salomone 2008). Large corporations, when com-
pared to small and medium-sized enterprises, tend to
implement more management systems (Bernardo et al.
2012). The concept of the circular economy is often
addressed as the solution to a number of challenges, such as
the generation of waste, resource scarcity, and sustained
PRODUCTION PLANNING & CONTROL 3
economic benefits (Lieder and Rashid 2016). In this context,
the concept of circularity is not new, since reuse, remanufac-
turing, and recycling are practices that have been used for a
long time (Wu et al. 2017).
Circular business models can be classified in different
ways (Manninen et al. 2018). One example is via environmen-
tal strategies, including their deceleration and through clos-
ure and tightening of resource links (Bocken et al. 2016).
According to ten Wolde (2016) are 6 categories of circular
business models, namely short cycle, long cycle, cascade,
pure circles, digitization and produce on demand. For
Lewandowski (2016), the ReSOLVE structure synthesizes most
of the circular business models. It encompasses a set of six
actions that businesses and governments can take to pro-
mote the transition to a circular economy. The actions are
regenerate, share, optimize, loop, virtualize, and exchange.
For the authors, Heyes et al. (2018) ReSOLVE is a circular
savings requirements checklist proposed by the Ellen
MacArthur Foundation (EMF 2015b). It has six basic actions
for its operation, which are: regenerate, share, optimize, loop,
virtualize and exchange. Each presents an opportunity for
the implementation of circular economy practices so that
technical and biological materials are properly separated and
it becomes possible to reintroduce the materials into the
production chains. Each action is compatible with three
underlying principles that define the circular economy,
namely: preserving and enhancing natural capital; optimise
resource efficiency by circulating products, components and
materials to the highest level of utility and value at all times
within technical and biological cycles; and promote system
effectiveness, revealing and designing negative externalities
(EMF 2015b). Finally, Heyes et al. (2018) point out that the
ReSOLVE typology can be used as a guiding checklist for cir-
cular economy innovations.
Table 1 shows the evolution of studies on research con-
structs, especially in recent years. In a systematic way, we
sought to map the recent research allusive to the constructs
in our work.
Considering the purpose of this study, namely to analyse
how the stages of maturity of the adoption of circular econ-
omy practices are related to circular economy business mod-
els; it was sought, in the light of the recent academic
literature, to elaborate some theoretical propositions that
allow understanding the relationship that establishes
between the constructs circular economy and stages
of maturity.
At this moment, some empirical evidence is presented,
which were basic guidelines for the formulation of theoret-
ical propositions, duly supported by authors in the later sec-
tion. It is known that when a practice of circular economy
begins to be implemented, there is a period of awareness of
the actors involved, creation of strategies of commitment
and commitment to practice, understanding the dynamics of
practice execution, monitoring of results associated with
practice, elaboration of performance indicators associated
with practice, control of the performance of the organisation
that adopts the practice and use of results for decision mak-
ing and continuous improvement. Based on this context, this
4 S. SEHNEM ET AL.

Table 1. Maturity levels, practices of circular economy and circular business models.
Constructs
Stages/levels of maturity
Practices of circular economy
Business Circular Templates
5Rs Business Model
Framework ReSOLVE
Description
Describes the different levels of business model
management capability. The more professional the
management, the more consolidated the practices
adopted tend to be. Each level of maturity
demands the formalisation of a set of practices
that contribute positively to making the enterprise
sustainable.
It consists of the set of routines, behaviours and
standards adopted by organisations to adhere to
the circular economy approach.
It is the value proposition that, in an assertive way,
must indicate how the organisation should
mobilise to concretise them
It consists in the act of rethinking, reducing, refusing,
reusing and recycling.
The ReSOLVE framework, Developed by McKinsey, the
framework takes the core principles of circularity
and applies them to six actions: Regenerate, Share,
Optimise, Loop, Virtualise, and Exchange (McKinsey
Center for Business and Environment Special
edition 2016)
References
Andriani et al. (2018); Ayinla and Adamu (2018); Bibby
and Dehe (2018); Gochermann and Nee (2018);
Vivares, Sarache and Hurtado (2018); Errastiet al.
(2018); Zare, Tahmasebi and Yazdani (2018);
Kosieradzka and Ciechan
ska (2018); Poltronieri,
Ganga and Gerolamo (2018); Stålberg and Fundin
(2018); Shi and Wang (2018); Krichene and El-Aroui
(2018); Chen and Wang (2016); Jurburg
et al. (2016)
Ndubisi and Al-Shuridah (2019); Schroeder, Anggraeni
and Weber (2019); Sousa-Zomer, et al. (2018);
Stewart and Niero (2018); Sauv
e, Bernard and
Sloan (2016); Naustdalslid (2014); Su, Heshmati,
Geng and Yu (2013); Zhu, Geng and Lai (2010);
Zhijun and Nailing (2007)
€
Unal and Shao (2019); Mendoza et al. (2019);
Nußholz, Nygaard and Milios (2019); Bocken and
Antikainen (2019); Bocken et al. (2019);
Geissdoerfer, Vladimirova and Evans (2018);
Geissdoerfer, Morioka, de Carvalho and Evans
(2018); Ranta, Aarikka-Stenroos and M€akinen (2018)
Lahti, Wincent and Parida (2018); Jabbour, Jabbour,
Foropon et al. 2018); Katait (2016); Gharfalkar, Ali
and Hillier (2018); Gharfalkar, et al. (2015);
Pariatamby and Fauziah (2014)
Jabbour, Jabbour, Godinho-Filho et al. (2018);
Ceptureanu, Ceptureanu and Murswieck (2019);
EMF (2015b); Prendeville, Cherim and Bocken
(2018); Liu and C^ot
e (2017); Romero, Noran, and
Bernus (2017); Jabbour, et al. (2017); Merli, Preziosi
and Acampora (2018); Hobson and Lynch (2016);
Zhai (2009)

study seeks to list some possibilities that tend to occur in
organizations. Based on the empirical evidence of the
observed social phenomenon, we try to verify if the time fac-
tor of adoption is also relevant when it relates the practical
constructs of circular economy and levels of maturity. That is,
if there is a long period of adoption of circular economy
practices, they tend to be more entrenched and contribute
effectively to making organizations more sustainable.
Also, if the different business models also have relevance
in the relationship between the practical constructs of circu-
lar economy and levels of maturity. The business models
adopted are directly associated with the types of practices
that are operationalized in the organization to make the
economy a reality in the process of handling the technical
and biological materials.
Also, there is a concern with the level of formal know-
ledge of the managers of the enterprises. In this context, it is
assumed that people with higher levels of formal education
tend to be more enlightened and aware, which would lead
to the adoption of more robust, sophisticated and more
complex circular economy practices. Thus, it is argued that,
in combination with this completeness of assumptions, the
result of the circular economy in these organizations tends
to be superior.
Finally, which organizations that have a broader product
mix tend to be more likely to adopt circular economy practi-
ces. Especially because they have diverse target audiences
and they, in turn, tend to have levels of demand and aware-
ness in their diverse choices. Thus, the more emergent the
company’s practices are, the greater the likelihood of being
associated with the organization’s sustainable commitment
to contribute to making society more just, more fraternal
and taking care of the efficient use of natural resources.
While the time of adoption of the practices interferes posi-
tively in the levels of maturity and that, in turn, tends to
generate superior results.
This study intends to test the following propositions:
Proposition 1: Levels of maturity and time of the adoption of
circular economy practices are positively related.
An increase in the maturity level of integration in man-
agement systems raises the company’s performance level
(Poltronieri, Ganga, and Gerolamo 2018). Geng et al. (2013)
developed a scale of indicators to measure the circular econ-
omy management system. They point out that, although
industry and geographic location show influence in the ana-
lysis of the benefits and obstacles inherent to the implemen-
tation of different management systems, the integration of
these systems generate superior performance (Geng et al.
2013). Integrating management systems is also directly
related to the maturity stage (Stålberg and Fundin 2018).
This, in turn, takes time to consolidate in organizations
(Stålberg 2018).
Proposition 2: Business models of circular economy and levels of
maturity are positively related.
The integration of management systems contributes to
making companies more sustainable (Poltronieri, Ganga, and
Gerolamo 2018). The implementation of certified manage-
ment systems, such as ISO 14.001 and OSHAS 18.001,
improves sustainable performance, as they invest in greater

integration of their management systems (Poltronieri, Ganga,
and Gerolamo 2018). Also, different business models can be
insightful in responding to the challenge of achieving sus-
tainability (Poltronieri, Ganga, and Gerolamo 2018). The
maturity of the integration of the management system can
lead to better sustainable performance (Poltronieri, Ganga,
and Gerolamo 2018). The level of maturity helps the process
of organizational improvement with well-defined evolution-
ary stages (Chrissis et al. 2003). The integration of manage-
ment systems while investing in sustainability, coupled with
changes in social attitudes (Lu et al. 2018), can bring about
fundamental changes that change the value of the company
(Jorgensen 2008).
Proposition 3: The manager’s level of education and a
sophistication of the practices of the circular economy adopted
are positively related.
Larger companies find it easier to integrate their manage-
ment systems and achieve sustainability (Poltronieri, Ganga,
and Gerolamo 2018). The use of increased scientific support
and comprehensive environmental measures help the legit-
imacy of economic and environmental decisions regarding
resource use and trade (Geng et al. 2013). The use of scien-
tific evidence for the development of the circular economy is
an effort that seeks to contribute to China’s cultural progress
(Geng et al. 2013). It also corroborates the need for staff to
build knowledge of both product and relationship manage-
ment skills (Tukker 2015).
Proposition 4: A portfolio of manufactured products and the
practices of the circular economy are positively related.
Companies implement product service systems in their
organizations to facilitate access and availability of products
to customers (Tukker 2015). It allows an emphasis on diver-
sity in terms of services provided (Tukker 2015). In product-
oriented business models, companies have the incentive to
maximize the number of products sold (Tukker 2015). In this
context, process virtualization via the product-services system
becomes a differentiating element in relation to traditional
business models. Further, these systems fully meet the
assumptions of the circular economy.
Proposition 5: A portfolio of products produced by wineries and
maturity levels are positively related.
The size of companies affects the results of low-maturity
groups; in other words, social and environmental perform-
ance is better in larger companies (Poltronieri, Ganga, and
Gerolamo 2018). For example, small and medium-size firms
are thought to be responsible for around 60% of all carbon
dioxide emissions and 70% of all pollution (Parker, Redmond
and Simpson 2009). In the manufacturing sector they
account for a large part of the world’s consumption of
resources, air and water pollution, and generation of waste.
Although the individual environmental footprints of small
businesses may be small, the aggregate environmental dam-
age they wreak in some sectors can exceed that of large
companies. Maximizing the number of products sold is the
main method of increasing turnover, increasing market share,
and generating greater profits (Tukker 2015). In business-
PRODUCTION PLANNING & CONTROL 5
driven services, companies make money at the time they get
paid for the service they offer and the material.
The forms of data binding to the propositions adopted in
this study consisted of cross-case synthesis, as recommended
by Yin (2010).
3. Methodological procedures
A consultation of the Scopus, Science Direct, Ebsco, Wiley
Online Library, Elsevier, Sage, Emerald, and ISI Web of
Sciences databases showed that there are no studies that
integrate Circular Business Models, Stages of Engagement
with Circular Economy, and Levels of Maturity. Nor do stud-
ies developed with this perspective in emerging markets
exist. Some systematic reviews of literature and empirical
studies have been conducted that allow us to reach these
conclusions, namely Sehnem, Vazquez-Brust, et al. (2019),
Sehnem and Pereira (2019), Sehnem, Pereira et al. (2019) and
Julkovski, Kuzma and Sehnem (2019). This signals the oppor-
tunity for innovative, qualitative, differentiated studies, case
studies, and exploratory studies.
3.1. Units of analysis and case study
This case study investigates the Santa Catarina Association of
Fine Wine Producers of Height (ACAVITIS), a group that
includes 28 associates. This association is located in the city
of S~ao Joaquim, State of Santa Catarina, in the south of
Brazil. For this research, a study of the 10 largest associated
wineries, in terms of revenue, was defined as the unit of ana-
lysis. The criteria used to choose ACAVITIS is in function of
the recognition it has in the wine sector, through the receipt
of awards for the products marketed and the ability to
innovate and adhere to new processes and practices in the
industry. It is an emblematic case, notable and whose wines
produced are receiving national and international awards,
according to IBRAVIN (2019). Besides the relevant role in
social inclusion, in the generation of income in family farms
and in the aggregation of value the raw material produced
in the properties where the wineries are located.
Another criterion adopted was an agreement for partici-
pation in the survey by managers of wineries in Santa
Catarina. The individual who holds the position of manager
of the winery has been mapped out to be the primary unit
of analysis. Then, the assumptions of Yin (2010) were fol-
lowed to define the case and the analysis units of the study.
According to Yin (2010), this is a case study with an
embedded approach; it involves more than one unit
of analysis.
The principles that guide the elaboration of this work are
the premises of Yin (2010) and Bardin (2011). From the litera-
ture review, 5 exploratory research proposals were presented.
These were exposed to validation during the analysis of the
empirical data collected in the 10 wineries that were the units
of analysis of this case study. The work follows methodo-
logical premises similar to those of Sehnem (2011), Campos
and Vazquez-Brust (2016), and Sehnem, Pereira et al. (2019)
6 S. SEHNEM ET AL.
Table 2. Investigated units of analysis and respective codenames.
Analysis units Codenames

Analysis Units 1 Cabernet Sauvignon
Analysis Units 2 Malbec
Analysis Units 3 Merlot
Analysis Units 4 Tannat
Analysis Units 5 Pinot Noir
Analysis Units 6 Chardonnay
Analysis Units 7 Syrah
Analysis Units 8 Sauvignon Blanc
Analysis Units 9 Riesling
Analysis Units 10 Carm
enere

This is a code name and not grape variety.
for ensuring construct validity and reliability, and evaluating
the maturity level of business models.
The research questions that motivate this study are: how
do the business models adopted by the southern Brazilian
winemakers engage with the circular economy? What is the
stage of engagement of the researched wineries with the cir-
cular economy? What is the level of maturity of the imple-
mentation of circular economy practices? Why do wineries
adopt circular economy practices? How do business models
of circular economy relate to maturity levels? How does a
manufactured product portfolio relate to the practices of the
circular economy and the maturity levels of the business
models adopted?
To maintain the anonymity of the respondents, code-
names were assigned, as can be seen in Table 2.
Note that in Table 2 the choice was made to identify the
analysis units by the codenames of fine wines. Hence, it is
possible to use playful thinking to abstract the subjectivities
of the aroma, taste, and structure of each wine manufac-
tured. Each unit of analysis investigated and associated with
the specificities of the circular business models, stages of
engagement with the circular economy, and levels of matur-
ity. In this way, we can find empirical evidence to allow us to
relate the practices of circular economy, the business models,
and the stage of maturity with the portfolio of products
manufactured by the investigated unit of analysis. Above all,
the theoretical propositions foreseen in this study will be
tested. As mentioned, the criteria for interpreting the study
findings follow the premises of Yin (2010) and Bardin (2011).
Table 3 presents the research protocol.
The case study will show why the implementation of cir-
cular economy practices and circular business models was
able to bring relevant contributions to sustainability. Further,
the level of maturity of the practices and business models of
the circular economy makes the results for sustainability
even more robust. In this way, our work corresponds to the
theory development premises advocated by Yin (2010).
For this to become possible, the interviews were pre-
arranged by phone. The question script described in Table 3
was used. At the time of the interviews, authorization was
requested to record in full the speech of the subjects. Later
these lines were transcribed and codified. It was also used
field diary to take note of representative aspects associated
with the speeches, perceptions, feelings, and emotions mani-
fested by the respondents.
Industrialized quantity
Approximately 140 tons of grape/year
Approximately 400 tons of grape/year
Approximately 150 tons of grape/year
Approximately 170 tons of grape/year
Approximately 100 tons of grape/year
Approximately 300 tons of own grape/year
þ Approximately 800 tons of grapes purchased from third parties/year
Approximately 120 tons of grape/year
Approximately 180 tons of grape/year
Approximately 980 tons of grape/year
Approximately 320 tons of grape/year
3.2. Research validity and reliability
To test the quality of the research project, Yin’s recommen-
dations for reliability, credibility, confirmability, and fidelity
tests were adopted (2010). Yin’s tests were carried out con-
sidering the following guidelines (2010):
a. The validity of the construct: by identifying the oper-
ational measures, multiple sources of evidence (namely,
in-depth interviews, websites, folders, and technical
reports) were utilized. These sources establish a chain of
evidence and key informant mapping information for a
review of the case study report. The studies of Sehnem
(2011), Campos and Vazquez-Brust (2016), Jabbour,
Maur
ıcio and Jabbour (2017), Sehnem, Pereira et al.
(2019) and Teixeira, Jabbour and de Souza Jabbour
(2012), Jabbour et al. (2015) also make the same combi-
nations for conducting a case study.
b. Internal validity: relationships were established between
certain conditions that lead to other conditions, allowing
the establishment of relations between the constructs of
the study. The tactics of the study adopted were the
combined use of standard and logical models.
c. External validity: the domain for which the findings of
the study may be generalized was covered by the tactic
of using the theory in the single case studies. The
desired generalization for the case study is analytical
and was covered in this study by means of a set of
results that allowed us to generalize a broader theory.
d. Reliability: to demonstrate that the operations of a case
study, as well as procedures for data collection, can be
repeated, using the same results, we pursued the case
study protocol and the development of a database of
case studies. Therefore, all project quality assumptions
recommended by Yin (2010) were followed to conduct
this study. This allows for the elaboration of a single
integrated case design, which makes use of multiple
analysis units.
3.3. Logic that binds the data to propositions
Logic allows us to join the proposition’s data constructs with
the generation of matrices that are related to the different
evidences of the research. In addition, the establishment of a
chain of evidence was elementary to validate the study’s
propositions. Finally, the combination of standards, the use

Table 3. Research protocol.
Phases
Planning: study questions
Design: propositions
Preparation: unit of analysis
Analysis Environment
Schedule
Collection: sources of evidence
Analyze
Search validity
Data source and reliability
Key issues
PRODUCTION PLANNING & CONTROL 7
Description
How do the business models adopted by the wineries in the Midwest of Santa Catarina engage with the
circular economy?
What is the stage of engagement of the researched wineries with the circular economy?
What is the level of maturity of the implementation of circular economy practices?
Why do wineries adopt circular economy practices?
How do business models of circular economy relate to maturity levels?
How does the portfolio of manufactured products relate to the practices of circular economy and the maturity
levels of the business models adopted?
Proposition 1: Levels of maturity and time of adoption of circular economy practices are related positively.
Proposition 2: Business models of circular economy and maturity levels are positively related.
Proposition 3: Level of education of the manager and sophistication of the practices of circular economy
adopted are related positively.
Proposition 4: Portfolio of manufactured products and practices of circular economy are related positively.
Proposition 5: Portfolio of products manufactured by wineries and maturity levels are related positively.
There are 10 wineries associated with ACAVITIS, identified through the codenames:
Unit 1: Cabernet Sauvignon
Unit 2: Malbec
Unit 3: Merlot
Unit 4: Tannat
Unit 5: PinotNoir
Unit 6: Chardonnay
Unit 7: Syrah
Unit 8: Sauvignon Blanc
Unit 9: Riesling
Unit 10: Carm
enere
Wineries adopting the practices of Circular Economy aligned with the framework ReSOLVE:
 Composting
 Organic Production
 Wastes used in the manufacture of by-products;
 Sharing expertise
 Provision of services to third parties
 Optimization of equipment
 Reuse of packaging
 Use of social networks for the dissemination of products
 Online sales and purchases
 Replacement of old technology with new
The research was conducted in the period from 29 October 2018 to 20 December 2018.
 In-depth interviews
 Web site
 Field journal
 Folders
 Technical reports
 Conducting content analysis
 Definition of analysis categories
 Type of analysis - categorical
 Performing data triangulation
Procedures for protocol use, use of multiple sources of evidence and triangulation of data were followed, as
recommended by Yin (2010).
The reliability of the data will be from triangulation between data, comparing the data obtained through
interviews with the secondary ones and also by comparing with the relevant data presented in the website.
In addition, the strategy of saturation of categories was adopted to reach exhaustion. Also, the use of four
main types of data: annotations, documentation of secondary data, tabulated material and narratives of
transcribed interviews.
1. A brief description of the company’s history (when the company was born, who idealized the company,
how the company was implemented, what products/services the company offers, how many employees it
has, area of coverage for which it markets its production, how many years are in the market, who are
the owners / partners and / or shareholders, how many hectares of grapes are on the property, if you
buy other producers);
2. Describe a brief profile of the current manager of the company (age, schooling, previous positions
occupied, time of company, personal values that computer);
3. Explain how the production process of your company works? What types of reuse does your company
do? (for example: peel jelly and have others?).
4. What are the main technological innovations present in the production process? How do they contribute
to the success of your business?
5. Are there public policies that support/subsidize and/or regulate the productive activity of your company?
6. Does the context (geographical location, the proximity of suppliers, technological centres, universities) in
which the company is inserted interfere with the results obtained in its production process? In what way?
7. Map production indicators (raw material volume processed)
8. Key lessons learned about the business while working in the company.
9. In your production activities do you use some action to improve soil capacity? (e.g. renewable
energy, composting).
10. Does your industry use the sharing of resources such as renting tools or machines, second-hand
products, or shares resources with other industries in the industry? Do you use any action to prolong the
life of the equipment?
(continued)
8 S. SEHNEM ET AL.

Table 3. Continued.
Phases Description
11. Does your industry have any action to remove the waste of energy and materials in order to increase the
performance or efficiency of the components?
12. Are the materials used recycled or remanufactured?
13. Does your industry use some virtual resource such as applications, digital signatures or online shopping
or social networking?
14. Does your industry replace old technology with more advanced technology? Have you changed the way
you do things such as changing the means of transportation of products?
Search for evidence Based on in-depth interviews, website, technical reports and documents.
Report  Final version of the scientific article. The linkage between the questions, the data collected and the
conclusions was made.

Table 4. Maturity levels of business models.

Level 0 Level 1 Level 2 Level 3 Level 4 Level 5
Nonexistent Executed Managed Established Predictable Optimized
Practices are not Practices are implemented Practices implemented, Managed practices Established practices Predictable process
implemented AND Processes executed AND AND AND
OR Reach Your Purpose AND Compliant with Your results are Critically analyzed and
Do not achieve Its products are standards, or measured continuously
their purpose established and best practices and controlled improved
controlled
AND
They are managed,
monitored,
and adequate
Source: Sehnem, Campos, Julkovski, & Cazella (2019).

of logical models, and analytical generalization were essential
to construct a theory from the empirical data in light of the-
oretical precepts and the identification of appropriate causal
relationships to be analyzed.
In addition, this study followed the guidelines presented
by Sehnem, Pereira et al. (2019) to evaluate the maturity
level of business models. This, in turn, regarding the maturity
levels of the business models, follows the adapted typology
of Grant and Pennypacker (2006) as described in Table 4.
It is noted in Table 4 and also highlighted by Sehnem,
Pereira et al. (2019) that maturity stages have 5 levels. These
levels present a progression associated with the stage of
consolidation of the circular economy practices adopted by
the organization. The more professional the management,
the more consolidated the practices adopted tend to be.
Each level of maturity demands the formalization of a set of
practices that contribute positively to making the enterprise
sustainable.
Afterward, Table 5 presents the relation matrix between
the maturity levels and the technical and biological cycles of
the circular economy.
The taxonomies of the business models ReSOLVE (EMF
2015a) and 5Rs (Lacy and Rutqvist 2015) were adopted to
validate the circular economics practices in the analyzed ana-
lysis units. The ReSOLVE framework adopts the regenerate,
share, optimize, loop, virtualize and exchange dimensions.
And the 5Rs adopt the dimensions to rethink, reduce, refuse,
recycle and reuse.
3.4. Criteria for interpreting findings
In order to interpret the research evidence, the parameters
foreseen in Table 6 were adopted.
4. Data presentation and analysis
4.1. Presentation of the case and analysis units
Table 7 presents the profile of the analysis units.
According to Table 7, the majority of respondents are
over 40 years of age and have completed high school. Four
of the managers interviewed have higher education and
have been working for more than 15 years in the wine sec-
tor. During the visits, it was noticed that most of the analysis
units are organized and clean places, with an adequate struc-
ture for reception of the clients. In addition, the managers
have ample knowledge of all the areas of the business; they
are not restricted to overseeing only operational activities.
Another important point is the origin of the wineries, practic-
ally all are or have started as a family activity and have
developed over time, with the passage of knowledge from
parents to children, including some which today employ
non-family members, and others which still continue with
only relatives dedicating themselves to the manufacture of
wine and other products. Except for one unit of analysis, all
of them own part of their own grape production, acquiring
another part of third parties. This ensures that at least part
of production is known from the outset, that is, of the whole
productive process, i.e. the entire production process, allow-
ing the manager to prepare in advance for what type of
product it will be possible to produce.
The average time in the winemaking sector of the organi-
zations surveyed is 28.6 years, and the youngest winemaker
surveyed has been in the industry for 11 years and the most
senior winemaker for 65 years. In terms of area of grape pro-
duction, it ranges from 7 to 49 hectares. The mix of manu-
factured products is also varied. All the developments
produce wine, but there are several other byproducts
 PRODUCTION PLANNING & CONTROL 9

Table 5. Matrix of relation between circular economy and maturity levels.

Levels Technical cycle
0 – Nonexistent No practices were identified
1 – Executed Collect, maintain/prolong, share, reuse/redistribute,
and remanufacture/renew from
technical materials
2 – Managed Displays indicators related to the dimensions
collect, hold/prolong, share, reuse/redistribute
and remanufacture/renew
3 – Established Presents history of indicators (2 years or more)
related to the dimensions collect, hold/prolong,
share, reuse/redistribute and
remanufacture/renew
4 – Predictable Besides presenting a history of indicators, it
presents continuous improvement goals for
each indicator Specially biological and
technical cycles.
5 – Optimized Besides presenting a history of indicators, it
presents continuous improvement goals for
each indicator and reports the achievement or
not of the goal. Inclusive biological and
technical cycles. When not achieved, it reports
the justification of not achieving the goal and
establishes a new goal for the coming year
Source: Sehnem, Pereira et al. (2019).
Biological cycle
No practices were identified
Collection, cascading, extraction of biochemical
raw materials, anaerobic digestion, biogas,
biosphere regeneration, biochemical raw
materials, and agriculture/collection of
biological materials
It presents indicators related to the dimensions of
collection, cascading, extraction of biochemical
raw materials, anaerobic digestion, biogas,
biosphere regeneration, biochemical raw
materials and agriculture/collection of
biological materials
It presents a history of indicators (2 years or more)
related to the collection, cascade, extraction of
biochemical raw materials, anaerobic digestion,
biogas, biosphere regeneration, biochemical raw
materials and agriculture/collection of
biological materials
Besides presenting a history of indicators, it
presents continuous improvement goals for
each indicator
Besides presenting a history of indicators, it
presents continuous improvement goals for
each indicator and reports the achievement or
not of the goal. When not achieved, it reports
the justification of not achieving the goal and
establishes a new goal for the coming year

derived from the grape and which have higher added value.
It is noteworthy that it is not possible to establish a relation-
ship between level of schooling and mix of products manu-
factured by the enterprise. Nor, the size of the enterprise
and the ability to add value to the grape produced.
Following, the next section deals with the practices of circu-
lar economy adopted by the wineries.
4.2. Stage of engagement of analysis units with
circular economy
Table 8 presents the ReSOLVE framework, with Regenerate,
Share, Optimise, Loop, Virtualise, and Change as central con-
cepts. These practices are applied to the context of the
researched wineries and they illustrate the circular economy
principles that each enterprise adopts.
Table 8 shows that wineries are currently engaged in cir-
cular economy practices. In terms of regeneration, there is
an excellent utilization of waste products. The capacity for
regeneration in this sector is great. While waste products
and losses are generated, these byproducts, materials, and
residues are reintroduced into new chains of production
through effective circularity. All the wineries surveyed dem-
onstrated that they have adopted a variety of effective
regeneration practices. Regarding sharing, several ventures
provide services to other regions, and these actions allow
them to optimize their productive capacity and to earn extra
income from infrastructure, machinery, and equipment
investment. An essential element to maintaining the tradition
of producing fine wines is the culture of passing on expert-
ise, knowledge from father to son, or from generation to
generation. This is the decisive sharing element that
generates customized products, wines that are differentiated
and able to satisfy the most discriminating palates.
In terms of optimization, the interviewees’ comments
were basically related to elements associated with the manu-
facturing infrastructure. However, the manager at the Tannat
winery mentioned the concept of ‘boutique type’ enterprises
and ‘gourmet type’ artisan productions, terms that suggest
the existence of an enterprise that seeks to become notable
for its unique and regionalised specificities, besides being
useful to obtain more notoriety and require Geographical
Indication (GI) for the wines produced, as is already the case
of the Goethe Grape Valley in the south of the State of
Santa Catarina and the Vale dos Vinhedos in the State Rio
Grande do Sul, that have this certification indicating a pro-
cess of aggregation of the value of the production in func-
tion of unique specificities of that place in the worldwide
level. This becomes an attraction for rural tourism and pro-
vides a market opportunity for this winery to stand out from
other competitors.
The Loop concept already naturally forms part of the pro-
cess of manufacturing wine and the byproducts derived from
grapes. Therefore, in this issue, the circularity of materials is
already present and is recognized by the interviewees as
being relevant. Of particular note is the use of grape bark,
seed, stalks for organic fertilization, and packaging.
Virtualization of processes is a practice that is gradually
being adopted by the interviewees. We can find evidence of
the virtualization concept among these wineries, especially
for the purchase of inputs and for the sale of wines and
byproducts of the grape. There are wineries, such as the case
of Tannat, that are already more committed to the virtualiza-
tion of their processes; they are currently engaged in the
10 S. SEHNEM ET AL.

Table 6. Matrix of relation between levels of maturity, difficulties, solutions, and stakeholders relevant to the operationalisation of the circular economy.
What difficulties does the How can companies overcome these Who is the agent responsible for
Levels company face? difficulties? overcoming the possible barriers?
0 – Nonexistent  Not conscience  Awareness raising of employees Businessmen and collaborators
 Not important given the  Benchmarking
circular economy  Visits to companies adopting the
 Lack of knowledge of managers circular economy
 Lack of prioritization of circular  Motivation with benefits for
economy practices the employee
1 – Executed  Organizational culture  Efficient communication Entrepreneurs and collaborators
 Consciousness of the team to  Team engagement
adhere to the premises of the  Conducting lectures, workshops,
circular economy sensitization meetings
 Stakeholder engagement  Monetise the economies that the
 Need to formalize a practices of circular economy
collaborative network generate for the company
 Report the results  Creation of a
collaboration network
 Conduct of audits
 Insertion of the circular economy
in the strategic planning of
the company
2 – Managed  Communication  Strategic managers stimulate the Entrepreneur, employees, suppliers,
 Record adoption of the circular economy customers/consumers
 Side dish  Quantify the values saved with and government
 Control the circular economy
 Monitoring  To mitigate the economic, social,
 Performance evaluation and environmental benefit of the
circular economy
 Reward the best performances
by department
3 – Established  Monitoring  To mitigate the economic, social, Entrepreneur, employees, suppliers,
 Management strategies and environmental benefit of the customers/consumers
 Awareness raising for continuous circular economy and government
adherence to  Reward the best performances
registration practices by department
 Evaluation of the results  Establish continuous
improvement goals
 Adherence to external audit
4 – Predictable  Monitoring  Turn the PDCA to the Entrepreneur, employees, suppliers,
 Management strategies circular economy customers/consumers
 Awareness raising for continuous  Use of the improvement of and government
adherence to circular economy indicators as a
registration practices bonus strategy for employees
 Evaluation of the results
 Continuous improvement goals
5 – Optimized  Monitoring  Management of results based on Entrepreneur, employees, suppliers,
 Management strategies indicators of the circular economy customers/consumers
 Awareness raising for continuous  Annual internal awareness and government
adherence to campaign for adhesion and
registration practices improvement of circular
 Engagement of the entire economy indicators
production chain downstream  Creation of the annual prize of
and upstream the best performances in circular
 Creation of short economy (by sector and/or
production cycles industrial unit)
 Evaluation of the results  Strategic management based on
 Continuous improvement goals indicators of circular economy for
 Relation of indicators among decision making in the
each other to generate data to organization
optimize management  Government incentive for
 Use the indicators for the adherence to circular
organization’s decision making economy practices
Source: Sehnem, Pereira et al. (2019).

creation of a virtual store of their own. Entrepreneurs are
interested in investing more in e-commerce because they
understand its reach is adequate to divulge their products
and that ample coverage and access to potential clients will
improve their business.
In terms of exchanges, the interviewees referred to replac-
ing old equipment with new ones and to maintaining the
manufacturing expertise of wines and byproducts. This is
characteristic of familiar production models and contributes
decisively to maintaining the tradition, values, and regional
culture, so typical of this region of study. In the sequence,
Table 9 presents the alignment of the circular economy prac-
tices adopted by the analysis units and their interfaces with
the 5Rs business model.
It is noted that in Table 9 that the 5Rs model is present
at different levels in the organizational routines of the
 PRODUCTION PLANNING & CONTROL 11

Table 7. Profile of the analysis units and the interviewees.

For how many years
has the family How many years Types of products
worked in has the grape been Quantity in hectares they offer to Interviewee’s
Analysis units the winemaking industrialized? of own grapes the market Interviewee’s age education
Cabernet Sauvignon 49 years 19 years 7 hectares Wines 45 years Complete
Sweets high school
Jams
Jams
Candied fruits
Grape juice
Distillates
Liquors
Malbec 65 years 29 years 40 hectares Wines 58 years Complete
Liquor wine high school
Merlot 15 years 15 years 11 hectares Wines 53 years Postgraduate full
Tannat 20 years 16 years 43 hectares Sparkling wine 33 years Full higher
White wine education
Red wine
Liquor wine
Cognac
Sparkling wine
Pinot Noir 11 years 8 years Production is Wines 69 years Complete
all outsourced Juices high school
Jams
Sparkling wine
Special grappa
candy
Chardonnay 25 years 25 years 13 hectares Hot beverages 45 years Full
Wine higher education
Grape juice
Syrah 28 years 10 years 6 hectares Wines 36 years Complete
Liquor wine high school
Grape juice
Craft Jelly
Sauvignon Blanc 12 years 12 years 9 hectares Wines 21 years Complete
high school
Riesling 29 years 29 years 49 hectares Whiskey 24 years Full
Vodka higher education
Cocktails
Soda
Wine
Carm
enere 32 years 32 years 16 hectares Wines 40 years Complete
high school

researched wineries. The practices of rethinking, reusing, and
recycling stand out. Afterward, Table 8 presents the levels of
maturity of the circular economy practices adopted by the
analysis units. The specific conditions of the site, factors
related to the consumption habits of the region, the recovery
of resources/land, the selected technologies, and the per-
spective of public support are relevant elements to make the
economy a consolidated and optimized practice in the enter-
prises surveyed. Finally, those parts of the value chain that
have the skills to reduce, recycle, and reuse are highlighted.
Others, like manufacturing and distribution, are rarely cited,
which corroborates with the data mapped by Kalmykova,
Sadagopan, and Rosado (2018). The scope for implementing
circular economy practices currently considers products,
materials, and regeneration by nature.
4.3. Maturity levels of business models of
circular economy
Table 10 shows the stage of engagement with the circular
economy, through the level of maturity of the circularity
practices adopted.
According to Table 10, the regeneration step is fully
deployed in 6 wineries surveyed. In the others, it is in an estab-
lished stage. There is a significant variation in the level of
maturity of the practices adopted. This can be associated with
the technological level of the enterprises surveyed, the time of
engagement with the practices of the circular economy, the
time of performance in the wine sector, and the manufacture
of wines and byproducts. Next, Table 11 presents the evidence
alluding to the testing of the propositions.
It is noted in Table 11 that there is no direct positive cor-
relation between time, maturity level and adoption of circu-
lar economy practices. It is not necessarily valid that the
longest-running enterprises have a higher maturity level and
that they adopt a larger number of circular economy practi-
ces and/or more sophisticated practices. However, there is
sufficient evidence that the level of maturity and time of
adoption of circular economy practices are positively related.
This is true in the analysis units for Cabernet Sauvignon,
Malbec, Merlot, Tannat, Pinot Noir, Chardonnay, Syrah, and
Carm
enere; hence, Proposition 1 is validated. On the other
hand, in the analysis units for Sauvignon Blanc and Riesling,
this evidence has not been proven.
Table 8. Circular economics practices adopted by the analysis units.
12

Analysis Units Regenerate Share Optimize Loop Virtualize Change

Cabernet Sauvignon Composting
Organic fertilization
Biodynamic production
Stimulating biodiversity
Green adubation
Wastes from production
become organic fertilizer
Know-how
Expertise of family production
Disseminate local tourism
culture
The value of a family business
for the children
The geographical identity of
the municipality, recognized
Sparkling production
equipment
Preventive maintenance
of equipment
Use of bark after fermented Dissemination of products in Expertise
wine to make grappa social networks Production techniques
Seed use Company website Replace old technology with
Residues are incorporated new
into land for fertilization Systematic of processes
Correction of the soil with the Business model
use of limestone
Word of mouth advertising
S. SEHNEM ET AL.

Malbec Organic production
Organic fertilization
Peels, stalks and seeds
are composted
Merlot Nothing stated
Tannat Bagasse used for fertilizer
Shell used to make grappa
Pinot Noir The bark is made special
grappa
From the mass of the fruit is
made juice
What remains of mass after
making the juice is jelly
In the end only the seed that
is deposited in the pareiral
is left
Chardonnay Leftovers and residues from
the production process
Syrah Grape bark is used to make
grappa
Miscellaneous wastes
Sauvignon Blanc Bagasse, bunch, and bark
turned into fertilizer
Riesling Miscellaneous wastes
The bagasse is pressed to
extract the juice or the
fermented wine in it
Bora is intended for animal
feed and fertilizer
Burning of pallets to feed
the boiler
Carm
enere Composting
Organic fertilization
as the capital of
Santa Catarina
Did not mention Did not mention Did not mention E-commerce Did not mention
Electronic purchases
Provision of services to Machinery and equipment Nothing stated Online shopping Expertise of wine production
third parties for wine production Online sales
Know-how to commercialize Infrastructure Miscellaneous materials Processes of acquisition of Expertise of wine production
the production The concept of the enterprise There are practically no losses, inputs and and marketing strategies of
Rent of the bottling part (boutique type) because every-thing commercialization of the products
Outsourcing of the Artisan production and factory is reused products
manufacture of with gourmet type Scheduling of visits
sparkling wines production Marketing of wine on a
Local and proper platform specializing in the
distribution centre sale of wines
Own virtual store
Provides winemaking service Consolidated brand with Waste from the production "I am not an oenologist but I Advice to take care of the
to other wineries differentiated products process made the wine that year, pareiral and to produce
Expansion of the product mix Packaging 32 tons I made with the quality grapes (exchange
to value the brand built oenologist at WhatsApp" the grape for well-
Perform preventive Internet sales elaborated wine)
maintenance Online shopping
Digital signature
Acquires the foaming Factory infrastructure Packaging Shopping on the internet Traditional stainless steel pipes
base ready Miscellaneous materials Digital signature
Sales and dissemination of
products via social networks
Outsource the production of You did not mention Miscellaneous materials No practice No practice
grape juice any practice. Packaging
Fund raising in banks You did not mention Miscellaneous materials Social networks for product No practice
any practice. dissemination
Company website
Provision of services in the Did not mention Did not mention Dissemination in social Old machines for new ones
plantation with dredger networks Artisanal process by
and backhoe Use of WhatsApp software for automated production.
internal communication Lighting has been replaced
Shopping and Internet sales by LEDbulbs
It uses outsourced machines Preventive maintenance Packaging Electronic purchases Old machines for new ones
and equipment in the of equipment Social networks Improved production process
maintenance of E-commerce
the windmill
Table 9. Alignment of the circular economy practices adopted by the analysis units with the 5Rs business model.
Analysis Units Rethink Reduce Refuse Reuse Recycle
Cabernet Sauvignon Systematic of enterprise Energy consumption Models of production in scale Carboy to store wine Broken glass
management
Strategy for valuing historical and
cultural heritage
Strategies to preserve the
history of a family business
Valuation strategies for
artisanal production
Malbec Be an initial entrant in Use of traditional matrix Nothing stated Nothing stated Nothing stated
innovations energy (think of installing
Online marketing photovoltaic panels)
Strategies of relationship with
the client
Merlot Optimization of the Nothing stated Nothing stated Nothing stated Nothing stated
manufacturing infrastructure
Intention to use
photovoltaic energy
Tannat High taxes that burden the Costs associated with Models of production without Wine bottles Miscellaneous materials
activity production differentiation Cardboard
Competitiveness strategies Taxation of the sector Metal
Pinot Noir Installation of solar panels on Waste practically zero Commodity production system Bottles of wine Miscellaneous materials
the roof Bottles of wine and juice
Chardonnay Adoption of the solar energy Not applicable Not applicable Plastic Glasses
infrastructure Cardboard
Bags
Syrah Not Applicable Not applicable Not applicable Miscellaneous materials Glass containers
Sauvignon Blanc Not Applicable Not applicable Plastics Bottles and glass bottles Not applicable
Riesling Closed cycle of water Glass containers
Carm
enere Continuously optimize the Production costs Not applicable Wine bottles Plastic and
production process Taxation of the sector or cardboard packaging
the activity
PRODUCTION PLANNING & CONTROL
13
14 S. SEHNEM ET AL.
It is also possible to verify that business models of circular
economy and maturity levels are positively related, which
validates Proposition 2. The cases of Sauvignon Blanc, Syrah,
and Riesling have reported little evidence of practices of
implementation of the models ReSOLVE and 5Rs.
The study also shows that the level of education of the
manager and sophistication of the practices of the circular
economy adopted are positively related, which validates
Proposition 3. There are units of analysis that did not allow
the proposition to be validated, seen in the cases of Malbec,
Merlot, Syrah, Sauvignon Blanc, and Riesling. However, it is
necessary to consider that there is predominance of inter-
view evidence, which is based on the perception of the man-
ager of the unit of analysis and whose reports may contain
biases and limitations associated with the inter-
viewee’s worldview.
In addition, the Proposition 4 portfolio of manufactured
products and circular economics practices relates positively;
we note validation for the analysis units of Cabernet
Sauvignon, Tannat, Pinot Noir, Chardonnay, Riesling, and
Carm
enere. For the other units of analysis, sufficient evidence
was not found to validate Proposition 4.
Regarding Proposition 5, portfolios of products manufac-
tured by the wineries and maturity levels are related posi-
tively in the analysis units of Cabernet Sauvignon, Malbec,
Merlot, Tannat, Pinot Noir, Syrah, and Carm
enere. This evi-
dence shows an important gap for research advances in the
topic of circular business models, practices of circular econ-
omy and levels of maturity, through quantitative studies that
allow the testing of hypotheses for possible relations among
the constructs.
Thus, our study highlights important evidence among the
constructs analyzed. The advance of the circular economy in
the wine sector may be associated with the propensity to
join innovations, new practices, to reinvent itself as a wine
business model, to the collaborative ecosystem and reverse
logistics. Our findings are similar to the evidence verified by
Goyal, Esposito, and Kapoor (2018). In any case, most wine-
ries are operating at maturity levels 3, 4, and 5 in their
adopted practices of the circular economy. This indicates
that the practices are already established, but they demand
optimization and management, to make them more efficient
and to ensure a positive impact on the model of family
wine production.
It is noted that the progression from level 3 to 4 and
from 4 to 5 is directly associated with management practices,
monitoring, control, and decision making. It is these aspects
that the wineries surveyed should foster in a more pro-
nounced way to consolidate the practices of circular econ-
omy in their enterprises.
4.4. Discussion of results
Tables 10 and 11 explain the relationship between the prac-
tical constructs of circular economy and maturity levels,
which allows answering the general objective of this study.
That is, it allows analyzing how the stages of maturity of the
adoption of circular economy practices are related to circular
economy business models. It is noteworthy that the varied
maturity levels found for the different practices of the circu-
lar economy adopted by the units of analysis are a prepon-
derant factor for the findings of the research. Moreover, the
time in which the winery adopts the practices of the circular
economy is also a decisive factor to narrow the relation
between practical constructs of circular economy and levels
of maturity.
In addition, organizational culture can influence the adop-
tion of circular economy practices and the maturity stage of
the implemented business models. Customer rigour and the
level of product satisfaction may also influence the propen-
sity to adopt circular economy practices. We also emphasize
that the support of all the stakeholders that work along the
wine production chain, including the articulation players of
the sector, such as the association that congregates the ana-
lyzed analysis units, are fundamental to implement the con-
cept of wide circular economy scale. Aspects endorsed by
Goyal et al. (2018), who stress that the adoption of the circu-
lar economy approach in developing countries requires a sys-
tematic change of behaviour in the long run.
As the interviewee of the analysis unit Cabernet
Sauvignon points out–inside the winery the investment in
stainless steel tanks, the electric pumps that touch heavy
mass, all equipment in stainless steel to meet the sanitary
laws, in the bottling line, more automation to not need so
much Labour and also ensure greater security at the time of
the packaging of the whole process. These innovations cer-
tainly contribute to success, because it is not always the
equipment that transforms the product, but the product that
you put inside of the equipment and that can change the
flavour, then the equipment comes to assist you in the pro-
cess.’ This speech denotes the perception of the importance
of product quality to win the customer.
In addition, there is an opportunity to create an ecosys-
tem for the awareness and adoption of integrated technolo-
gies for collecting, segregating, and extracting materials to
increase their circularity, as reported by Goyal et al. (2018).
A structured waste management system, innovation in
design from obsolete materials, and the intent to reinvent,
recreate, and reuse is welcome to the context analyzed.
Opportunities to use academic instruction to spark new
opportunities for the researched Association and all affiliated
wineries can generate eco-friendly products and offer sus-
tainable products derived from the grape’s productive chain.
Future-oriented entrepreneurs, creative individuals, emerging
technologies, the strengthening of the collaborative and inte-
grated resource management system, the configuration of an
institutional, regional, and national support ecosystem can
be decisive for the expansion of business models based on
practices of the circular economy. This entrepreneurial profile
can overcome the difficulties found in the reuse of assets
which, according to Hopkinson et al. (2018), creates tension
and is always perceived as a threat to new sales.
Value delivery to customers can be expanded via the pro-
jection of distribution channels based on the product service
system (Tukker 2015). The creation of e-commerce platforms
and online retail stores were promotions motivated by the
 PRODUCTION PLANNING & CONTROL 15

Association, attempts to congregate the network of local

1.33 (Executed/Managed)
wineries. This artifact can be useful in tourist prospecting, in
the identity of origin, in the geographical valorization of the
3.83 (Established/

3.17 (Established/

3.83 (Established/

3.50 (Established/

3.17 (Established/
Average

3.0(Established)
5.0 (Optimized)

(Predictably/

Established)
Predictable)

Predictable)

Predictable)

Predictable)

Predictable)
2.5 (Managed/
territory, and in the future creation of a cluster driven by the

Optimized)
circular economy.
In relation to the capture of value based on the elements

4.33
of business models, circular economy, and maturity levels, it
is possible to adopt multiple streams of revenues, associated
with the goal of the wine segment. The marketing of pre-
Level 3 – Established

Level 3 – Established

Level 3 – Established

Level 3 – Established

Level 3 – Established
Level 1 – Performed
Level 5 – Optimized
Level 5 – Optimized
mium quality products, high standard products for people
Level 2 – Managed

Level 2 – Managed
Change

with high levels of income, can cover a niche market in the

country. A strong brand (i.e. products with strong brand
meaning and brand equity) differentiates the product and
creates the desire that goes beyond utility, making the con-
sumer loyal (Hopkinson et al. 2018). Brand meaning refers to
everything people associate with a brand (Newman 1957),
and brand equity denotes added value brought to a firm’s
Level 3 – Established

Level 3 – Established

Level 3 – Established

Level 3 – Established

Level 3 – Established
Level 1 – Performed
Level 5 – Optimized

Level 5 – Optimized
Level 5 – Optimized

Level 5 – Optimized

products or services that allow the firm to charge a premium

Virtualize

price for the brand than that charged by identical or

Note: The maturity levels assigned to each item in the ReSOLVE model were determined by the joint interpretive analysis of Tables 2–4 and Figure 1.

unbranded products. At the other extreme, retailing of trad-

itional products, ‘the famous wine garnished,’ highlighted by
Tannat, can serve a larger population and optimize grapes of
inferior quality and generate products with lower added
value, but be awakened to consumer opportunities by a
Level 3 – Established

Level 3 – Established
Level 1 – Performed
Level 5 – Optimized

Level 5 – Optimized
Level 5 – Optimized

large public endorsement. For such companies, this is brico-

Level 2 – Managed

Level 2 – Managed

Level 2 – Managed

lage at work. Bricolage empowers them to survive and even

Level 0 – None
Loop

flourish through recombining and reusing resources at hand

to fill the existing resource gaps and solve encountered
problems (Baker and Nelson, 2005). Accumulating evidence
in the field of entrepreneurship suggests that ventures
engaging in bricolage are better able to manage resource
constraints and can achieve superior performance. Finally,
Level 3 – Established

Level 3 – Established

Level 3 – Established

Level 3 – Established

Level 3 – Established
Level 4 – Predictable

Level 1 – Performed
Level 5 – Optimized

Level 5 – Optimized

extracting value from pioneering, privileged geographic loca-

Optimize

Level 0 – None

tion, the charms and natural beauties of the environment,

Table 10. Level of maturity of the circular economy practices adopted by the analysis units.

and constant innovation in emerging practices, can symbol-

ize substantial progress in income generation for the sur-
veyed units of analysis.

5. Concluding remarks
Level 3 – Established

Level 3 – Established

Level 3 – Established

Level 3 – Established

Level 3 – Established
Level 4 – Predictable

Level 1 – Performed
Level 5 – Optimized

Level 5 – Optimized

Level 5 – Optimized
Share

The objective of this study was to analyze how the maturity

stages of the adoption of circular economy practices are
related to the circular economy business models. We also
investigated 5 propositions that relate the constructs of cir-
cular business models, practices of the circular economy, lev-
els of maturity, schooling, and time of operation in the
Level 3 – Established

Level 3 – Established
Level 3 – Established

Level 3 – Established

wine sector.
Level 5 – Optimized

Level 5 – Optimized

Level 5 – Optimized

Level 5 – Optimized
Level 5 – Optimized

Level 5 – Optimized
Regenerate

To combine these themes in a single framework and to

empirically analyze them in the context of the wine analysis
units is the main contribution of this study. It is possible to
find some studies that dedicate themselves to studying only
parts of the structure investigated in this work, namely Zare,
Tahmasebi, and Yazdani (2018), which study the relationship
Cabernet Sauvignon

between maturity levels and human resources; Vivares,

Sauvignon Blanc
Analysis Units

Sarache, and Hurtado (2018), which analyse the levels of

Chardonnay

Carm
enere
Pinot Noir

maturity of university entrepreneurship; Andriani et al.

Riesling
Malbec

Tannat
Merlot

(2018), who examine the maturity models in manufacturing

Syrah

systems; and Errasti et al. (2018), who establish a relationship

16 S. SEHNEM ET AL.

Circular Circular Maturity

Economy Economy Level
Business
Models

Proposition 1: Levels of maturity and time of the adoption of circular economy practices are positively related.
Proposition 2: Business models of circular economy and levels of maturity are positively related.
Proposition 3: The manager’s level of education and a sophistication of the practices of the circular economy
adopted are positively related.
Proposition 4: A portfolio of manufactured products and the practices of circular economy are positively
related.
Proposition 5: A portfolio of products produced by wineries and maturity levels are positively related.

Figure 1. Framework for integration of study constructs.

between maturity levels of business processes and the
growth of small and medium-sized companies in the fashion
industry. The opportunity remains to study more complete
models like the one presented in this study.
The main results of this study show that, in general, the
proposed conceptual model is valid, although not all propo-
sitions have been validated in all units of analysis. There are
asymmetries of the maturity level of the circular business
models in the studied analysis units. There are regional, geo-
graphic, cultural specificities, and different entrepreneurial
profiles. The case study brings together units of analysis with
different productivities, but with many current circular econ-
omy practices. The implementation stage of these practices
varies, and the biological cycle (Hopkinson et al. 2018) of the
circular economy is fully deployed in most units of analysis.
The technical cycle (EMF 2015a) is fully met in many wineries
surveyed. The empirical analysis also revealed the following:
 Levels of maturity tend to influence in a positive way the
time of the adoption of the practices of circular economy
and the profile of the practices adopted, with strong
explanatory power, and if this occurs, will contribute to
generating synergy between circular economy, manage-
ment, performance, and levels of maturity. This creates a
win-win environment for all stakeholders engaged in the
wine sector and tends to meet customer expectations;
 circular economy business models and maturity levels are
positively related to 60% of the surveyed units of analysis,
allowing a moderate relationship between the evaluated
constructs. In this way, the opportunity arises to evaluate
other units of analysis with higher maturity levels and
more consolidated business models of the circular econ-
omy, to compare performance achieved;
 the level of education of the manager and the sophistica-
tion of the practices of the circular economy adopted are
related positively, which allows affirming that the scien-
tific knowledge is essential for the professionalization of
the management, for adherence to innovations and
emerging manufacturing practices;
 a portfolio of manufactured products and practices of the
circular economy are positively related. This allows us to
understand that the higher the value-added in the raw
material, the greater the probability of investing in circu-
lar economy practices;
 a portfolio of products manufactured by wineries and
maturity levels are positively related. This finding shows
that the expansion of the product mix has a close rela-
tionship with the consolidation of professional manage-
ment strategies, with consolidated maturity levels and
with differentiated performances that make the enter-
prises more sustainable;
These findings indicate that the assessment of the power
of significance of the relationship between the constructs is
an opportunity for quantitative studies to be developed in
the future. These results have implications for academics and
entrepreneurs. For the scholars, in the light of the Brazilian
context, the emphasis of literature on the maturity of the
management system and improvement of sustainable per-
formance (Poltronieri, Ganga, and Gerolamo 2018) and man-
agement system of circular economy based on indicators
(Geng et al. 2013), are confirmed in our study. But there is a
Table 11. Evidence that corroborates the validation of propositions.
Proposition 1: Levels of maturity and time Proposition 2: Business models of the Proposition 3: The manager’s level of Proposition 4: A portfolio of manufactured Proposition 5: A portfolio of products
Unidades de of adoption of practices of circular circular economy and maturity education and asophistication of the circular products and the practices of circular produced by wineries and maturity levels
An
alise economy are positively related. levels are positively related. economy practices are positively related. economy are positively related. are positively related.

Practices of Sophistication of the Portfolio of Sophistication of Portfolio of

Maturity circular Validation of Maturity Validation of practices of circular Validation of manufactured the practices Validation of manufactured Validation of
Name Time level economy proposition ReSOLVE 5Rs level proposition Instruction economy proposition products of circular economy proposition products Maturity level proposition
Cabernet 19 years 3.83 V V V V 3,83 V Complete V V Wines V V Wines 3.83 V
Sauvignon (Established/ (Established/ high school Sweets Sweets (Established/
Predictable) Predictable) Jams Jams Predictable)
Candied fruits Candied fruits
Grape juice Grape juice
Distillates Distillates
Liquors Liquors
Malbec 29 years 3.17 V V V V 3.17 V Complete Not applicable No Wines Not applicable No Wines 3.17 V
(Established/ (Established/ high school Liquor wine Liquor wine (Established/
Predictable) Predictable) Predictable)
Merlot 15 years 3.83 V V V V 3.83 V Complete Not applicable No Wines Not applicable No Wines 3.83 V
(Established/ (Established/ Postgraduate (Established/
Predictable) Predictable) Predictable)
Tannat 16 years 3.50 V V V V 3.50 V Complete V V Sparkling wine V V Sparkling wine 3.50 V
(Established/ (Established/ higher White wine White wine (Established/
Predictable) Predictable) education Red wine Red wine Predictable)
Liquor wine Liquor wine
Cognac Cognac
Sparkling wine Sparkling wine
Pinot Noir 8 years 5.0 V V V V 5.0 V Complete V V Wines V V Wines 5.0 V
(Optimised) (Optimised) high school Juices Juices (Optimised)
Jams Jams
Sparkling wine Sparkling wine
Grappa Grappa
Candy Candy
Chardonnay 25 years 4.33 V V V V 4.33 V Complete V V Hot beverages V V Hot beverages 4.33 V
(Predictably/ (Predictably/ higher Wine Wine (Predictably/
Optimized) Optimized) education Grape juice Grape juice Optimized)
Syrah 10 years 3.0 V V V V 3.0 V Complete Not applicable No Wines Not applicable No Wines 3.0 V
(Estabelecido) (Established) high school Liquor wine Liquor wine (Established)
Grape juice Grape juice
Craft Jelly Craft Jelly
Sauvignon Blanc 12 years 1.33 V No V V 1.33 V Complete Not applicable No Wines Not applicable No Wines 1.33 No
(Executed/ (Executed / high school (Executed /
Managed) Managed) Managed)
Riesling 29 years 2.5 V No V V 2.5 V Complete Not applicable No Whiskey, V V Whiskey, 2.5 No
(Managed/ (Managed/ higher Vodka, Vodka, (Managed/
Established) Established) education Cocktail, Soda Cocktail, Soda Established)
Wine Wine
Carm
enere 32 years 3.17 V V V V 3.17 V Complete V V Wines V V Wines 3.17 V
(Established/ (Established/ high school (Established/
Predictable) Predictable) Predictable)
PRODUCTION PLANNING & CONTROL
17
18 S. SEHNEM ET AL.

gap to be filled in future research, to test relationships Daniela Preschlak is a Student at Mater Professional
through multivariate analysis techniques, allowing accuracy Degree at Universidade do Oeste de Santa Catarina,
in the intensity of the relationship. researching about sustainability and circu-
The findings bring as a practical contribution to the society lar economy.
the validation via theoretical proposition that there is a rela-
tion between practices of circular economy and levels of
maturity. This relationship is influenced by other aspects,
namely, time of adoption, managers’ education, portfolio of
products offered and business models adopted.
Understanding these intricacies, facets, and specificities can Ro
gis Juarez Bernardy is an Associate Professor at
provide a competitive differential for the organizations sur- Universidade do Oeste de Santa Catarina, research-
veyed. The empirical evidence described in this study indicates ing about sustainability, regional development and
that there are several elements that positively affect the rela- urban planning.
tionship between the constructs surveyed. The contribution to
the scientific environment is the explicitation of pecularistic
findings in organizations located in emerging countries that
have their own dynamics but tend to disseminate best practi-
ces from developed countries, such as the circular economy
disseminated by the Ellen MacArthur Foundation (2015).
Silvio Santos Junior is an Associate Professor at
For business managers, the implications are as follows:
Universidade do Oeste de Santa Catarina, research-
there is a need to systematically understand the relationship ing about sustainability, agribusiness and cooper-
between business models and different management practices ation networks.
adopted in the context of winemaking and there is a need to
pay more attention to the measurement and control of wine-
making indicators. Performance includes the level of sophisti-
cation, maturity, and efficiency of circular economy practices
adopted by organizations. These two management recom-
mendations can contribute to these two organizations – Unit ORCID
of analysis (the winery) and the case investigated (ACAVITIS). Simone Sehnem http://orcid.org/0000-0002-2416-4881
In this way, there are opportunities for advancement to all Nelson Oly Ndubisi http://orcid.org/0000-0003-1357-9042
stakeholders, including government, institutions, corporations, Daniela Preschlak http://orcid.org/0000-0002-4157-1550

gis Juarez Bernardy
Ro http://orcid.org/0000-0002-2214-5783
nongovernmental organizations, civil society organizations,
Silvio Santos Junior http://orcid.org/0000-0002-4962-9905
development agencies, innovation incubators, and individuals.

Disclosure statement
No potential conflict of interest was reported by the authors.
Notes on contributors
Simone Sehnem is an Associate Professor at
Universidade do Oeste de Santa Catarina and
Universidade do Sul de Santa Catarina, researching
about sustainability, circular economy, agribusiness
and disruptive innovation.
Nelson Oly Ndubisi is a Professor at Department of
Management, Qatar University, Doha, Qatar,
researching about sustainability, strategic manage-
ment and marketing management.
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