Creating Value from Waste: An Analysis of the Bale Wrap Plastic Ecosystem

Abstract

The current “take-make-dispose economy” is built on extensive and increasing usage of easily accessible and cheap materials and energy. In a similar way, the amount of waste is increasing. Such development is not sustainable and circular economy has been suggested as one solution to the problem. Circular economy aims to reduce the amount of waste, but also includes principles such as reuse and recycling. Therefore, the purpose of this study is to investigate how value can be created from waste in a specific business ecosystem. The study will focus on the circular economy and waste hierarchy strategies for creating value from waste and on the drivers and barriers for those strategies.

The empirical study is based on a mono-method, cross-sectional case study research on the business ecosystem of bale wrap plastics. The empirical data is gathered through interviews with the three focal operators of that ecosystem. The operator groups are producers of bale wrap, users of bale wrap and handlers of the bale wrap plastic waste. The users of bale wrap have a double role as they are also the creators of the plastic waste. The scope of the study is understanding and defining how value can be created from bale wrap plastic waste and what are the main drivers and barriers for the focal operators in that ecosystem.

The findings of the study contribute to the existing research by comparing the theoretical findings with new empirical evidence, and by creating a better understanding of how value can be created from waste in a specific sector. According to the findings, the main drivers for creating value from bale wrap plastic waste are lowering the recycling cost, reusing recycled raw materials, and the environmental benefits. The main barriers are sorting and storage, contamination, and the transportation costs. In addition, the findings reveal a contradiction in the existing terminology, indicating how the traditional perception of waste does not contribute to the value creation and that revised terminology could better communicate and emphasize the value potential “waste” possesses.