Opportunity and Future of Circular Economy Development

**87**

**Chapter 6**

Downturns

*and Wibowo Kosasih*

surveys by quantitative research.

**1. Introduction**

distinctive innovation capability, Society 5.0

**Abstract**

Responding to Changes in

Environmental Turbulence - A

Strategy to Driving Business

Growth in Facing Economic

*Librita Arifiani, Harjanto Prabowo, Asnan Furinto* 

Society 5.0 focuses on people and changes from innovation to technological transformation through industrial automation 4.0. In this study, environmental turbulence refers to exogenous factors that give rise to an uncertain and volatile situation that impacts performance. This study was measured by asking respondents' perceptions through explanatory studies and preliminary surveys about market predictability, innovation, and customer preference. Disruptive innovation and environmental turbulence are key creative drivers for reengineering businesses; however, only agile innovation can take advantage of the economic downturn. Exploratory case studies and literature reviews are using to test the antecedent of environmental turbulence, Distinctive Innovation Capabilities, through an innovative business model to firm performance. From a managerial perspective, this study provides a comprehensive view of environmental turbulence's impact, how to develop a DIC strategy for developing an organization's business model, how to achieve it, what variables contribute, and how to relate it to performance. This research's authenticity lies in how management comes up with a practically oriented framework of how organizations shape to be innovative and competitive by constructing common business models. However, this study has limitations due to its qualitative nature and conceptual framework, which needs to be investigated further through large-scale

**Keywords:** environment turbulence, firm performance, business model innovation,

The modern global economy is on the brink of a new industrial revolution, as evidenced by many actual trends, following the provisions of modern economic theory (economic cycle theory, crisis theory, innovation theory). Overcome the global crisis, a new wave of innovation has needed where Industry 4.0 will become

### **Chapter 6**

## Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth in Facing Economic Downturns

*Librita Arifiani, Harjanto Prabowo, Asnan Furinto and Wibowo Kosasih*

### **Abstract**

Society 5.0 focuses on people and changes from innovation to technological transformation through industrial automation 4.0. In this study, environmental turbulence refers to exogenous factors that give rise to an uncertain and volatile situation that impacts performance. This study was measured by asking respondents' perceptions through explanatory studies and preliminary surveys about market predictability, innovation, and customer preference. Disruptive innovation and environmental turbulence are key creative drivers for reengineering businesses; however, only agile innovation can take advantage of the economic downturn. Exploratory case studies and literature reviews are using to test the antecedent of environmental turbulence, Distinctive Innovation Capabilities, through an innovative business model to firm performance. From a managerial perspective, this study provides a comprehensive view of environmental turbulence's impact, how to develop a DIC strategy for developing an organization's business model, how to achieve it, what variables contribute, and how to relate it to performance. This research's authenticity lies in how management comes up with a practically oriented framework of how organizations shape to be innovative and competitive by constructing common business models. However, this study has limitations due to its qualitative nature and conceptual framework, which needs to be investigated further through large-scale surveys by quantitative research.

**Keywords:** environment turbulence, firm performance, business model innovation, distinctive innovation capability, Society 5.0

#### **1. Introduction**

The modern global economy is on the brink of a new industrial revolution, as evidenced by many actual trends, following the provisions of modern economic theory (economic cycle theory, crisis theory, innovation theory). Overcome the global crisis, a new wave of innovation has needed where Industry 4.0 will become a new global industrial landmark and standard of development in the real economic sector of the entire global economic system [1]. In line with the goals of society 5.0, Industry 4.0 revolutionizes the production industry by increasing operational efficiency, new business models, services, and products. Society 5.0 focuses on using technology developed by Industry 4.0 to benefit humankind by utilizing advanced technology to solve problems and the economy. This study identifies that disruption of innovation through environmental turbulence offers opportunities to drive business development. Society 5.0 focuses on people and changes from innovation to technological transformation through industrial automation 4.0 [2, 3]. In this study, environmental turbulence refers to exogenous factors that give rise to uncertain and volatile situations that impact business performance [4, 5].

While some companies view environmental instability as a risk that threatens performance, it has understood as a threat and an opportunity for more entrepreneurial firms. It opens opportunities for the growth of various new businesses accompanied by increasingly fierce competition [6]. The desire to find ways to overcome turbulence and create growth and success from turbulence drives companies to think and act. Rapid technological advances have led to significant business developments and changes [7]. Likewise, as reported by The Global Competitiveness Report 2017–2018, the interruption and disruption of technological change create extraordinary possibilities and challenges which strengthen by using the convergence of digital, physical and organic technology that has characterized the rise of the Fourth Industrial Revolution [8].

Environmental turbulence can occur in several factors: technology turbulence, competition intensity, market turbulence, and regulation. The biggest factor is due largely to rapid technological changes and the high intensity of competition marked by customer composition changes, behavior, and preferences. In Indonesia, over the top service (OTT) penetration was long before Covid-19 eroded revenue providers [9, 10]. Even though the operator is experiencing growth, the Telco industry requires a large investment, but the income is low. Although growing, digital services have not replaced declining operator revenues [11, 12]. When environmental turbulence occurs, it causes a direct disruption to company performance. Thus, the company's initial response must be fast to reduce accumulated losses. In the firm's predetermined response model, management reactions are initiated without delay on the rational trigger point, as illustrated in **Figure 1** [13]. Due to the environment's

**89**

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth…*

In this study, the methodology used is a qualitative systematic literature review on various aspects of the topics discussed, including strategy, distinctive capability, environmental turbulence, and business model strategies. The basic ideas on carrying out such a systematic review had borrowed from leading scholars in the field [14]. Both integrative and interpretive techniques had used to uncover new insights into strategy. Various studies on dynamic strategies and volatile business environments have collected it from various primary qualitative studies conducted using this methodology. Several in-depth studies of the subject matter have carried it out so that conclusions have drawn it. Thus, the literature review's qualitative synthesis

turbulent characteristics, both the base model and the Determinant model of

has used it as the basis for the arguments discussed in this chapter.

model innovation strategies to firm performance [17, 18].

pool of knowledge in this research area.

This study is also measured by asking respondents' perceptions through explanatory studies and preliminary surveys on market predictability, innovation, and customer preferences. Disruptive innovation through environmental turbulence is a major creative driver for reengineering businesses. It is not just innovation but *agile innovation* that can take advantage of economic downturns by developing new creative business models by *making new paradigm shifts* [15, 16]. As globalization and digitization evolve, organizations must respond quickly to changing market demands. According to Milan Krstic, 2018 agile innovation is a collaborative process that connects innovation, people, technology, projects, and outputs that impact paradigm shifts driven by competition in the market and rapid technological advances [16]. Agile innovation emphasizes creative and adaptable teamwork in solving complex problems; Lean development focuses on eliminating all losses continuously so that the innovation process is significantly faster [15]. Thus, the company can be fast responding to Changes in Environmental Turbulence to encourage business growth in the face of deteriorating company performance. Exploratory case studies and literature reviews are using to test environmental turbulence's antecedents, Distinctive Innovation Capabilities, through business

This study fills the gap from the previous study. Since 2000, most business models have focused on organizations' mediating role to mediate technology capabilities and firm performance. Only a handful of research publications so far have examined how organizations innovating should have structured collaborations and interact fluidly [19, 20]. There are no studies that elaborate on how organizations exploit internal resources and structures and how to access, configure, and utilize external resources embedded in business model strategies to produce the ability to manage business turbulence in the industrial evolution of the 4.0 era through Distinctive Innovation Capabilities [21, 22]. This research's authenticity lies in how management produces a practically oriented framework of how organizations shape to be innovative and competitive by building a common business model. However, this study has limitations due to its qualitative nature and conceptual framework, which needs further investigation through large-scale surveys by quantitative research. The conceptualization and investigation of the independent and combined effects of business model innovation, environmental turbulence, and Distinctive Innovation Capabilities structures on organizational agility highlight the importance of complementarity between antecedents and add to the cumulative

*DOI: http://dx.doi.org/10.5772/intechopen.95054*

**2. Methodology and research gap**

responses are triggered after the event has occurred.

**Figure 1.** *Decisive model of firm response to a crisis event.*

turbulent characteristics, both the base model and the Determinant model of responses are triggered after the event has occurred.

#### **2. Methodology and research gap**

*Circular Economy - Recent Advances, New Perspectives and Applications*

volatile situations that impact business performance [4, 5].

terized the rise of the Fourth Industrial Revolution [8].

a new global industrial landmark and standard of development in the real economic sector of the entire global economic system [1]. In line with the goals of society 5.0, Industry 4.0 revolutionizes the production industry by increasing operational efficiency, new business models, services, and products. Society 5.0 focuses on using technology developed by Industry 4.0 to benefit humankind by utilizing advanced technology to solve problems and the economy. This study identifies that disruption of innovation through environmental turbulence offers opportunities to drive business development. Society 5.0 focuses on people and changes from innovation to technological transformation through industrial automation 4.0 [2, 3]. In this study, environmental turbulence refers to exogenous factors that give rise to uncertain and

While some companies view environmental instability as a risk that threatens performance, it has understood as a threat and an opportunity for more entrepreneurial firms. It opens opportunities for the growth of various new businesses accompanied by increasingly fierce competition [6]. The desire to find ways to overcome turbulence and create growth and success from turbulence drives companies to think and act. Rapid technological advances have led to significant business developments and changes [7]. Likewise, as reported by The Global Competitiveness Report 2017–2018, the interruption and disruption of technological change create extraordinary possibilities and challenges which strengthen by using the convergence of digital, physical and organic technology that has charac-

Environmental turbulence can occur in several factors: technology turbulence, competition intensity, market turbulence, and regulation. The biggest factor is due largely to rapid technological changes and the high intensity of competition marked by customer composition changes, behavior, and preferences. In Indonesia, over the top service (OTT) penetration was long before Covid-19 eroded revenue providers [9, 10]. Even though the operator is experiencing growth, the Telco industry requires a large investment, but the income is low. Although growing, digital services have not replaced declining operator revenues [11, 12]. When environmental turbulence occurs, it causes a direct disruption to company performance. Thus, the company's initial response must be fast to reduce accumulated losses. In the firm's predetermined response model, management reactions are initiated without delay on the rational trigger point, as illustrated in **Figure 1** [13]. Due to the environment's

**88**

**Figure 1.**

*Decisive model of firm response to a crisis event.*

In this study, the methodology used is a qualitative systematic literature review on various aspects of the topics discussed, including strategy, distinctive capability, environmental turbulence, and business model strategies. The basic ideas on carrying out such a systematic review had borrowed from leading scholars in the field [14]. Both integrative and interpretive techniques had used to uncover new insights into strategy. Various studies on dynamic strategies and volatile business environments have collected it from various primary qualitative studies conducted using this methodology. Several in-depth studies of the subject matter have carried it out so that conclusions have drawn it. Thus, the literature review's qualitative synthesis has used it as the basis for the arguments discussed in this chapter.

This study is also measured by asking respondents' perceptions through explanatory studies and preliminary surveys on market predictability, innovation, and customer preferences. Disruptive innovation through environmental turbulence is a major creative driver for reengineering businesses. It is not just innovation but *agile innovation* that can take advantage of economic downturns by developing new creative business models by *making new paradigm shifts* [15, 16]. As globalization and digitization evolve, organizations must respond quickly to changing market demands. According to Milan Krstic, 2018 agile innovation is a collaborative process that connects innovation, people, technology, projects, and outputs that impact paradigm shifts driven by competition in the market and rapid technological advances [16]. Agile innovation emphasizes creative and adaptable teamwork in solving complex problems; Lean development focuses on eliminating all losses continuously so that the innovation process is significantly faster [15]. Thus, the company can be fast responding to Changes in Environmental Turbulence to encourage business growth in the face of deteriorating company performance.

Exploratory case studies and literature reviews are using to test environmental turbulence's antecedents, Distinctive Innovation Capabilities, through business model innovation strategies to firm performance [17, 18].

This study fills the gap from the previous study. Since 2000, most business models have focused on organizations' mediating role to mediate technology capabilities and firm performance. Only a handful of research publications so far have examined how organizations innovating should have structured collaborations and interact fluidly [19, 20]. There are no studies that elaborate on how organizations exploit internal resources and structures and how to access, configure, and utilize external resources embedded in business model strategies to produce the ability to manage business turbulence in the industrial evolution of the 4.0 era through Distinctive Innovation Capabilities [21, 22]. This research's authenticity lies in how management produces a practically oriented framework of how organizations shape to be innovative and competitive by building a common business model. However, this study has limitations due to its qualitative nature and conceptual framework, which needs further investigation through large-scale surveys by quantitative research. The conceptualization and investigation of the independent and combined effects of business model innovation, environmental turbulence, and Distinctive Innovation Capabilities structures on organizational agility highlight the importance of complementarity between antecedents and add to the cumulative pool of knowledge in this research area.

From a managerial perspective, this study provides a comprehensive view of environmental turbulence impact, how to develop a Distinctive Innovation Capability strategy for developing an organization's business model, how to achieve it, what variables contribute, and how to relate it to performance. Institutional cooperation requires collaboration in an innovation environment where consumers, companies, universities, and public authorities work together to produce innovation (Quadruple Helix). It means that the resulting research can apply to national development, and higher education is responsive to industrial, customer and social needs [23, 24].

#### **3. Conceptual development**

#### **3.1 Environmental turbulence on business model strategy**

Companies are operating in a more dynamic environment that affects environmental turbulence that occurs influence business model transformation and business performance. Many studies confirm that several conditions in the Study of Environmental Turbulence and Model Transformation & Business Models affect company performance [25–28]. The more turbulent an environment, companies must rely on innovation to neutralize the outdated threats of products and technology and take advantage of new technological opportunities to create new business models that can support company performance [29, 30]. However, according to [31] pragmatically, some problems will be missed and become strategic surprises even at the most sophisticated environmental scanning method. The recent economic downturn and current pressures on the market have increased the need for leaders to have a strategic business model plan [32]. Organizations whose historical business models have based on organic growth must now strategically position themselves taking into account the new 'rules of the game' and develop a posture that increases strategic, managerial aggressiveness [33].

The process of forming a volatile environment is inseparable from the influence of technology, the emergence of a new economic order, changing values and lifestyles, and the availability of an exchange of information flows, goods and services with a decreasing price trend accompanied by the high speed of the flow of goods/services and the dissemination of information. The emergence of an economic model of sharing transportation and accommodation has disrupted business establishment. Several studies have confirmed the relationship between environmental turbulence and business strategy models and then show that it successfully competitive advantage. Besides, it mediates the role of business model innovation to show that there is a relationship, and the results of several studies suggest that business model innovation has a positive effect on company performance [34, 35].

The description above means the higher the organization's ability to provide the right solutions with a good business model innovation strategy that can provide added value to the organization. Then the innovative business model will perform better in facing competitive advantages in the telecommunications industry. Therefore, it had assumed that environmental turbulence influences business innovation. According to [36], human resources and capabilities are important components of a company's competitive advantage in a resource-based view. The concept of turbulence was initially introduced in 1965 by Emery and Trist. The business environment has been influencing by several components (competition, customers, suppliers, shareholders, public markets, regulatory bodies, legislative bodies, technology, economics, and society) [37]. Environmental turbulence influences the external environment or changes in the future [38, 39]. Based on the contingency

**91**

**Figure 2.**

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth…*

theory [40, 41], organizations react to environmental changes, and organizational strategies are determined based on environmental conditions that occur. **Figure 2** shows that many studies on environmental turbulence strategies with a link and difference focus have described it as pedigrees for the theoretical foundation of environmental turbulence from the market and organization perspective. This study ends with the definition of environmental turbulence for the Telecommunication Industry. Organizational ability to project business planning creatively, flexibly, and adaptively to anticipate potential disruptors, new regulations, technology changes, competition, social patterns, and consumer lifestyles. The dimension of environmental turbulence in this study is; Dynamics - the extent to which the company's environmental components' elements remain the same over time or a continuous flux [42]. The degree of dynamism (instability) has influenced it by changing environmental change and change intensity. Complexity - Increasing number of elements and their interdependence [43], homogeneity/heterogeneity [44] contribute to environmental complexity. Predictability - uncertainty, or ignorance, is a dimension related to the extent of causation and the availability of information

about change contributing to the level of uncertainty [39, 45]**.**

*Theoretical foundation of environmental turbulence. Source: Various publication*

**3.2 Distinctive innovation capability and firm performance**

The literature on strategic management shows different capabilities or competencies as an important part of an organization's resources and competitive advantage. Mintzberg and Quinn [46] argue that Distinctive Innovation capability, as a competitive advantage source, provides the basis for a sustainable competitive advantage [43]. Meanwhile, Drucker [47] and Cavusgil et al. [48] discussed the importance of the ability of innovation for organizations to survive in an

*DOI: http://dx.doi.org/10.5772/intechopen.95054*

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth… DOI: http://dx.doi.org/10.5772/intechopen.95054*

#### **Figure 2.**

*Circular Economy - Recent Advances, New Perspectives and Applications*

**3.1 Environmental turbulence on business model strategy**

increases strategic, managerial aggressiveness [33].

needs [23, 24].

**3. Conceptual development**

From a managerial perspective, this study provides a comprehensive view of environmental turbulence impact, how to develop a Distinctive Innovation Capability strategy for developing an organization's business model, how to achieve it, what variables contribute, and how to relate it to performance. Institutional cooperation requires collaboration in an innovation environment where consumers, companies, universities, and public authorities work together to produce innovation (Quadruple Helix). It means that the resulting research can apply to national development, and higher education is responsive to industrial, customer and social

Companies are operating in a more dynamic environment that affects environmental turbulence that occurs influence business model transformation and business performance. Many studies confirm that several conditions in the Study of Environmental Turbulence and Model Transformation & Business Models affect company performance [25–28]. The more turbulent an environment, companies must rely on innovation to neutralize the outdated threats of products and technology and take advantage of new technological opportunities to create new business models that can support company performance [29, 30]. However, according to [31] pragmatically, some problems will be missed and become strategic surprises even at the most sophisticated environmental scanning method. The recent economic downturn and current pressures on the market have increased the need for leaders to have a strategic business model plan [32]. Organizations whose historical business models have based on organic growth must now strategically position themselves taking into account the new 'rules of the game' and develop a posture that

The process of forming a volatile environment is inseparable from the influence of technology, the emergence of a new economic order, changing values and lifestyles, and the availability of an exchange of information flows, goods and services with a decreasing price trend accompanied by the high speed of the flow of goods/services and the dissemination of information. The emergence of an economic model of sharing transportation and accommodation has disrupted business establishment. Several studies have confirmed the relationship between environmental turbulence and business strategy models and then show that it successfully competitive advantage. Besides, it mediates the role of business model innovation to show that there is a relationship, and the results of several studies suggest that business model innovation has a positive effect on company performance [34, 35]. The description above means the higher the organization's ability to provide the right solutions with a good business model innovation strategy that can provide added value to the organization. Then the innovative business model will perform better in facing competitive advantages in the telecommunications industry. Therefore, it had assumed that environmental turbulence influences business innovation. According to [36], human resources and capabilities are important components of a company's competitive advantage in a resource-based view. The concept of turbulence was initially introduced in 1965 by Emery and Trist. The business environment has been influencing by several components (competition, customers, suppliers, shareholders, public markets, regulatory bodies, legislative bodies, technology, economics, and society) [37]. Environmental turbulence influences the external environment or changes in the future [38, 39]. Based on the contingency

**90**

*Theoretical foundation of environmental turbulence. Source: Various publication*

theory [40, 41], organizations react to environmental changes, and organizational strategies are determined based on environmental conditions that occur. **Figure 2** shows that many studies on environmental turbulence strategies with a link and difference focus have described it as pedigrees for the theoretical foundation of environmental turbulence from the market and organization perspective.

This study ends with the definition of environmental turbulence for the Telecommunication Industry. Organizational ability to project business planning creatively, flexibly, and adaptively to anticipate potential disruptors, new regulations, technology changes, competition, social patterns, and consumer lifestyles. The dimension of environmental turbulence in this study is; Dynamics - the extent to which the company's environmental components' elements remain the same over time or a continuous flux [42]. The degree of dynamism (instability) has influenced it by changing environmental change and change intensity. Complexity - Increasing number of elements and their interdependence [43], homogeneity/heterogeneity [44] contribute to environmental complexity. Predictability - uncertainty, or ignorance, is a dimension related to the extent of causation and the availability of information about change contributing to the level of uncertainty [39, 45]**.**

#### **3.2 Distinctive innovation capability and firm performance**

The literature on strategic management shows different capabilities or competencies as an important part of an organization's resources and competitive advantage. Mintzberg and Quinn [46] argue that Distinctive Innovation capability, as a competitive advantage source, provides the basis for a sustainable competitive advantage [43]. Meanwhile, Drucker [47] and Cavusgil et al. [48] discussed the importance of the ability of innovation for organizations to survive in an

unstable environment [46, 47]. Innovation capability had proposed as a high-level integration capability, namely, forming and managing various capabilities [48]. Organizations with this innovation capability can integrate their company's core capabilities and resources to stimulate innovation successfully [49, 50].

According to Amabile [51] and quoted by Zhao et al. [52] states that innovation capability is the application of knowledge relevant to the achievement of value in an organization. Teece and Pisano [53] and Teece et al. [54] suggested that the winners in the global market are companies that demonstrate timely responsiveness and innovation that is fast and flexible [55, 56], together with management's ability to coordinate effectively and re-apply internal and external competencies [57]. However, Miranda and Figueiredo [58] distinguish routine and innovative companies based on technological innovation capabilities with the factors that shape vision and strategy capabilities [51, 52], utilization of competency bases, organizational intelligence, creativity and idea management, organizational structures and systems, culture and climate and technology management [53]. Saunila defines innovation capabilities by influencing an organization's ability to manage innovation [53]. These aspects include participatory leadership culture, ideation, organizational structure, climate, worker welfare, knowledge development, regeneration, external knowledge [54], and individual activity [59].

This study concludes that Distinctive Innovation capability is the company's ability to develop and manage fast and flexible innovation by leveraging technology management's creative capabilities, knowledge development, integrating capabilities, and core company resources to stimulate innovation and provide added value for companies to gain competitive advantage.

#### **3.3 Business model strategy and innovation capability**

Any organization interested in competing in a dynamic market must create unique benefits that enable it to gain a competitive advantage over competitors. However, [60] argues that business has become a global and global market, which increasingly encourages an Innovation Business Model because companies must overcome global challenges. The way to outperform competitors is through innovation. Innovation as a strategy involves creating new ideas, processes, and methods to improve current goods and services or bring them into new products and services [37]. Innovation is needed to maintain the existing competitive position and the competitive advantage that has obtained it. Most studies conclude that business model innovation increases competitive advantage and contributes significantly [58, 61]. Previous studies examined cloud and digital computing as disruptive innovations. Building on this reflection, to better understand business model innovation resulting from accepting a cloud benefit model [36, 62].

Technology has changed organizations must realize that a classic business model, such as buying and selling at a premium price, will no longer work [63]. Technological changes provide the necessary context for understanding the transformation of new digital technologies [64–66]. This article will help understand why this new business model's strategy innovation is important and why everyone should understand the most successful business models. Looking at the business model is essential to understanding how to position a company and generate additional revenue [58, 60, 67]. New business models can also help companies become more resilient to market dynamics and diversify business strategy [68, 69]. Successful disruptive business models are often customer focused. Based on the description above, the higher the organization's ability to provide the right solutions with a good business model innovation strategy that can provide sustainable Business Models, Added value to the organization, the high-level innovation will

**93**

strategy.

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth…*

perform better in the face of competitive advantage [69, 70]. Therefore, a business model paradigm's concept logic can help understand specific innovation to transformation challenges that companies will face when introducing new business models, a simplified schematic overview strategy Sustainability Business Model, reconcep-

An extensive literature review guided the choice of variables for the conceptual framework. Identify the dominant antecedents considered to form the business model innovation strategy and firm performance by developing it through exploratory case studies. Thus, in line with this study, the objectives are to examine the effect of Environmental Turbulence (ET), Distinctive Innovation Ability, and business model innovation influence firm performance (FP). The literature review of the concepts above will answer the questions in this study by explaining how the relationship between Environmental Turbulence (ET), Distinctive Innovation capabilities, and business model innovation affects company performance (FP)? Therefore, based on the study literature and explanatory case study, this study

defined several hypotheses. The following hypotheses have been compiled by modeling the relationships between the variables examined in detail in this section,

1.Business model innovation has a positive effect on company performance.

3.Typical Innovation Capabilities have a positive influence on company

2.Environmental Turbulence (ET) has a positive effect on company performance (FP) directly and indirectly through a business model innovation strategy.

performance (FP) directly or indirectly through a business model innovation

and a conceptual research model developed, as shown in **Figure 4**.

*DOI: http://dx.doi.org/10.5772/intechopen.95054*

tualized from **Figure 3** [71].

*Sustainability business model transformation.*

**Figure 3.**

**4. Development of conceptual framework**

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth… DOI: http://dx.doi.org/10.5772/intechopen.95054*

**Figure 3.**

*Circular Economy - Recent Advances, New Perspectives and Applications*

external knowledge [54], and individual activity [59].

**3.3 Business model strategy and innovation capability**

resulting from accepting a cloud benefit model [36, 62].

for companies to gain competitive advantage.

unstable environment [46, 47]. Innovation capability had proposed as a high-level integration capability, namely, forming and managing various capabilities [48]. Organizations with this innovation capability can integrate their company's core

According to Amabile [51] and quoted by Zhao et al. [52] states that innovation capability is the application of knowledge relevant to the achievement of value in an organization. Teece and Pisano [53] and Teece et al. [54] suggested that the winners in the global market are companies that demonstrate timely responsiveness and innovation that is fast and flexible [55, 56], together with management's ability to coordinate effectively and re-apply internal and external competencies [57]. However, Miranda and Figueiredo [58] distinguish routine and innovative companies based on technological innovation capabilities with the factors that shape vision and strategy capabilities [51, 52], utilization of competency bases, organizational intelligence, creativity and idea management, organizational structures and systems, culture and climate and technology management [53]. Saunila defines innovation capabilities by influencing an organization's ability to manage innovation [53]. These aspects include participatory leadership culture, ideation, organizational structure, climate, worker welfare, knowledge development, regeneration,

This study concludes that Distinctive Innovation capability is the company's ability to develop and manage fast and flexible innovation by leveraging technology management's creative capabilities, knowledge development, integrating capabilities, and core company resources to stimulate innovation and provide added value

Any organization interested in competing in a dynamic market must create unique benefits that enable it to gain a competitive advantage over competitors. However, [60] argues that business has become a global and global market, which increasingly encourages an Innovation Business Model because companies must overcome global challenges. The way to outperform competitors is through innovation. Innovation as a strategy involves creating new ideas, processes, and methods to improve current goods and services or bring them into new products and services [37]. Innovation is needed to maintain the existing competitive position and the competitive advantage that has obtained it. Most studies conclude that business model innovation increases competitive advantage and contributes significantly [58, 61]. Previous studies examined cloud and digital computing as disruptive innovations. Building on this reflection, to better understand business model innovation

Technology has changed organizations must realize that a classic business model, such as buying and selling at a premium price, will no longer work [63]. Technological changes provide the necessary context for understanding the transformation of new digital technologies [64–66]. This article will help understand why this new business model's strategy innovation is important and why everyone should understand the most successful business models. Looking at the business model is essential to understanding how to position a company and generate additional revenue [58, 60, 67]. New business models can also help companies become more resilient to market dynamics and diversify business strategy [68, 69]. Successful disruptive business models are often customer focused. Based on the description above, the higher the organization's ability to provide the right solutions with a good business model innovation strategy that can provide sustainable Business Models, Added value to the organization, the high-level innovation will

capabilities and resources to stimulate innovation successfully [49, 50].

**92**

*Sustainability business model transformation.*

perform better in the face of competitive advantage [69, 70]. Therefore, a business model paradigm's concept logic can help understand specific innovation to transformation challenges that companies will face when introducing new business models, a simplified schematic overview strategy Sustainability Business Model, reconceptualized from **Figure 3** [71].

#### **4. Development of conceptual framework**

An extensive literature review guided the choice of variables for the conceptual framework. Identify the dominant antecedents considered to form the business model innovation strategy and firm performance by developing it through exploratory case studies. Thus, in line with this study, the objectives are to examine the effect of Environmental Turbulence (ET), Distinctive Innovation Ability, and business model innovation influence firm performance (FP). The literature review of the concepts above will answer the questions in this study by explaining how the relationship between Environmental Turbulence (ET), Distinctive Innovation capabilities, and business model innovation affects company performance (FP)?

Therefore, based on the study literature and explanatory case study, this study defined several hypotheses. The following hypotheses have been compiled by modeling the relationships between the variables examined in detail in this section, and a conceptual research model developed, as shown in **Figure 4**.


**Figure 4.** *Conceptual model.*

The explanation above and based on the previous literature means that the higher the organization's ability to provide the right solution with a good environmental turbulence strategy that can add value to firm performance, either directly or through an innovation model business strategy. Meanwhile, based on a previous study, the higher its ability to carry out business model innovation and a good distinctive innovation capability, the higher its performance. Therefore, it should have assumed that based on the hypothesis in **Figure 4**, there is an influence between environmental turbulence, business innovation strategy, and distinctive innovation capability on company performance in the telecommunications industry.

#### **5. Conclusion**

Exploratory case studies and systematic literature reviews prove that business strategy innovation and firm performance are essential for business success when faced with intense environmental turbulence. Typical Innovation Capabilities and Firm Performance are determined by appropriate revenue in the ongoing market and the expansion of technology and innovation in products for new information for decision-making capabilities [70]. Therefore, innovative portfolio business models are at the center of strategic decision-making capabilities, especially when the complexity of innovation and dynamics increases. This study conceptually develops a framework that connects environmental turbulence, distinctive innovation capabilities, business model innovation, and tests its effect on company performance. This study uses information processing theory to propose and test the antecedents and consequences of a business model innovation strategy.

Innovative business model capabilities are a continuous change from new business strategies to keep pace with market developments, competitive advantage, and performance. Therefore, innovation capabilities are not simply the ability to successfully run a new business or manage mainstream capabilities. However, innovation capability is about synthesizing three paradigms, enabling innovative companies to produce new products and services that are quality-focused, efficient, and responsive.

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*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth…*

This study proposes the idea of a Typical Innovation capability. We have used the innovation management literature and several case studies as examples of Cisco Systems to demonstrate how innovation capabilities synthesize new and mainstream flows to achieve effective innovation performance. The next section identifies the elements of makeup innovation capability. Therefore, the innovation capability model aims to build a theoretical framework that highlights the actions managers can take to influence innovation success. However, several attempts have made it use a dynamic capabilities approach to produce a holistic innovation capability model. Organizations focus on innovation and innovation output as a

Besides, this study has been able to fill the gaps and enhance previous studies on business model innovation strategies. It has explained that the distinctive Innovation capabilities by utilizing the external organizational structure's capabilities and flexibility can face business turbulence. It allows organizations to achieve an increase in business strategy innovation capabilities, high-quality company performance in the face of economic decline, and at the same time, add to this cumulative knowledge study. Investigations of a set of antecedents of distinctive Innovation capabilities, business model innovation strategies, and environmental turbulence on company performance have highlighted the importance of comple-

This research has limitations in telecommunications information, communication, and technology in Indonesia. As an antecedent of the Service Innovation has identified it, and its relationship has presented, large-scale quantitative surveys will test the conceptual framework and further explore each variable's role.

Furthermore, future research expands to consider the international implications of

From a managerial perspective, this research gives organization management a comprehensive view of enhancing innovation business model strategy and consecutively providing a solution to customers and influencing it and their relationships. This study will benefit the telecommunications companies that want to move to digital transformation, which is still an expensive and lengthy process, by using strengthening integrative capability to perfecting internal monetization, but especially overcoming external monetization from the opportunity of environmental turbulence to leap forward. Portfolio managers have suggested it intensify the information system's use as it positively impacts an organization's innovation business performance by intensifying information exchange with internal and

From the social impact perspective, with the sustainable growth of technologybased companies, through innovative business models, Distinctive Innovation capability and environmental turbulence capabilities, companies can provide general benefits from the microeconomic side to customers and at a macro level to the performance of the company and industry in general. Thus, it can be a driving force for the advancement of digitalized technology knowledge and adopted by the

mentarity as critical factors developed in future research.

*DOI: http://dx.doi.org/10.5772/intechopen.95054*

competitive strategy.

**6. Future research**

external stakeholders.

research and the broader scope.

**7. Management implications/social impact**

community to prepare development towards society 5.0.

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth… DOI: http://dx.doi.org/10.5772/intechopen.95054*

This study proposes the idea of a Typical Innovation capability. We have used the innovation management literature and several case studies as examples of Cisco Systems to demonstrate how innovation capabilities synthesize new and mainstream flows to achieve effective innovation performance. The next section identifies the elements of makeup innovation capability. Therefore, the innovation capability model aims to build a theoretical framework that highlights the actions managers can take to influence innovation success. However, several attempts have made it use a dynamic capabilities approach to produce a holistic innovation capability model. Organizations focus on innovation and innovation output as a competitive strategy.

Besides, this study has been able to fill the gaps and enhance previous studies on business model innovation strategies. It has explained that the distinctive Innovation capabilities by utilizing the external organizational structure's capabilities and flexibility can face business turbulence. It allows organizations to achieve an increase in business strategy innovation capabilities, high-quality company performance in the face of economic decline, and at the same time, add to this cumulative knowledge study. Investigations of a set of antecedents of distinctive Innovation capabilities, business model innovation strategies, and environmental turbulence on company performance have highlighted the importance of complementarity as critical factors developed in future research.

#### **6. Future research**

*Circular Economy - Recent Advances, New Perspectives and Applications*

The explanation above and based on the previous literature means that the higher the organization's ability to provide the right solution with a good environmental turbulence strategy that can add value to firm performance, either directly or through an innovation model business strategy. Meanwhile, based on a previous study, the higher its ability to carry out business model innovation and a good distinctive innovation capability, the higher its performance. Therefore, it should have assumed that based on the hypothesis in **Figure 4**, there is an influence between environmental turbulence, business innovation strategy, and distinctive innovation

capability on company performance in the telecommunications industry.

antecedents and consequences of a business model innovation strategy.

products and services that are quality-focused, efficient, and responsive.

Exploratory case studies and systematic literature reviews prove that business strategy innovation and firm performance are essential for business success when faced with intense environmental turbulence. Typical Innovation Capabilities and Firm Performance are determined by appropriate revenue in the ongoing market and the expansion of technology and innovation in products for new information for decision-making capabilities [70]. Therefore, innovative portfolio business models are at the center of strategic decision-making capabilities, especially when the complexity of innovation and dynamics increases. This study conceptually develops a framework that connects environmental turbulence, distinctive innovation capabilities, business model innovation, and tests its effect on company performance. This study uses information processing theory to propose and test the

Innovative business model capabilities are a continuous change from new business strategies to keep pace with market developments, competitive advantage, and performance. Therefore, innovation capabilities are not simply the ability to successfully run a new business or manage mainstream capabilities. However, innovation capability is about synthesizing three paradigms, enabling innovative companies to produce new

**94**

**5. Conclusion**

**Figure 4.** *Conceptual model.*

> This research has limitations in telecommunications information, communication, and technology in Indonesia. As an antecedent of the Service Innovation has identified it, and its relationship has presented, large-scale quantitative surveys will test the conceptual framework and further explore each variable's role. Furthermore, future research expands to consider the international implications of research and the broader scope.

#### **7. Management implications/social impact**

From a managerial perspective, this research gives organization management a comprehensive view of enhancing innovation business model strategy and consecutively providing a solution to customers and influencing it and their relationships. This study will benefit the telecommunications companies that want to move to digital transformation, which is still an expensive and lengthy process, by using strengthening integrative capability to perfecting internal monetization, but especially overcoming external monetization from the opportunity of environmental turbulence to leap forward. Portfolio managers have suggested it intensify the information system's use as it positively impacts an organization's innovation business performance by intensifying information exchange with internal and external stakeholders.

From the social impact perspective, with the sustainable growth of technologybased companies, through innovative business models, Distinctive Innovation capability and environmental turbulence capabilities, companies can provide general benefits from the microeconomic side to customers and at a macro level to the performance of the company and industry in general. Thus, it can be a driving force for the advancement of digitalized technology knowledge and adopted by the community to prepare development towards society 5.0.

*Circular Economy - Recent Advances, New Perspectives and Applications*

#### **Author details**

Librita Arifiani\*, Harjanto Prabowo, Asnan Furinto and Wibowo Kosasih Binus Business School, Bina Nusantara University, Indonesia

\*Address all correspondence to: librita.arifiani@binus.ac.id

© 2021 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

**97**

2017.

2017.

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth…*

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[13] D. Kipley, A. Lewis, and R. Jewe, "Entropy - Disrupting Ansoff's five levels of environmental turbulence," Bus. Strateg. Ser., vol. 13, no. 6, pp.

[14] R. P. Gephart, "Qualitative Research and the Academy of Management Journal," Acad. Manag. J., vol. 47, no. 4,

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[17] J. J. Kranz, A. Hanelt, and L. M. Kolbe, "Understanding the influence of absorptive capacity and ambidexterity on the process of business model change – the case of on-premise and cloud-computing software," Inf. Syst. J.,

vol. 26, no. 5, pp. 477-517, 2016.

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*DOI: http://dx.doi.org/10.5772/intechopen.95054*

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Librita Arifiani\*, Harjanto Prabowo, Asnan Furinto and Wibowo Kosasih

© 2021 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

Binus Business School, Bina Nusantara University, Indonesia

\*Address all correspondence to: librita.arifiani@binus.ac.id

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[51] A. Roseno, D.- Frederiksberg, and Z. Universität, "Distinctive dynamic capabilities for new business creation : sensing , seizing , scaling and separating Ellen Enkel and Florian Mezger," vol. 8, no. 2, pp. 197-234, 2013.

[52] C. Romero, "Administrative Sciences Distinctive Innovation Capabilities of Argentine Software Companies with High Innovation Results and Impacts," 2018.

[53] L. Achtenhagen, L. Melin, and L. Naldi, "Dynamics of business models strategizing, critical capabilities and activities for sustained value creation," Long Range Plann., vol. 46, no. 6, pp. 427-442, 2013.

[54] D. Palacios, Æ. I. Gil, and Æ. F. Garrigos, "The impact of knowledge management on innovation and entrepreneurship in the biotechnology and telecommunications industries," pp. 291-301, 2009.

[55] C. P. Killen, "Managing portfolio interdependencies: The effects of visual data representations on project portfolio decision making," Int. J. Manag. Proj. Bus., vol. 10, no. 4, pp. 856-879, 2017.

[56] D. Jonas, "Empowering project portfolio managers: How management involvement impacts project portfolio management performance," Int. J. Proj. Manag., vol. 28, no. 8, pp. 818-831, 2010.

[57] D. J. Teece, "Explicating dynamic capabilities: the nature and micro foundations of (sustainable) enterprise performance," Strateg. Manag. J., vol. 28, no. 13, pp. 1319-1350, Dec. 2007.

[58] T. M. Kising'u, P. G. S. Namusonge, and D. F. M. Mwirigi, "The Role of Organizational Innovation in Sustainable Competitive Advantage in Universities in Kenya," Int. J. Soc. Sci. Humanit. Invent., vol. 3, no. 9, pp. 2762- 2786, 2016.

[59] J. M. Pinheiro, M. T. Preto, L. F. Lages, and G. M. Silva, "Knowledge creation, turbulence, and manufacturing flexibility roles in business performance and operations performance," *Knowl. Manag.*, no. 1996, pp. 16-28, 2016.

[60] S. K. Rao and R. Prasad, "Telecom Operators' Business Model Innovation in a 5G World," J. Multi Bus. Model Innov. Technol., vol. 4, no. 3, pp. 149- 178, 2018.

[61] B. Wooldridge and S. W. Floyd, "The Strategy Process , Middle Management Involvement , and Organizational

Performance," vol. 11, no. 3, pp. 231-241, 2016.

[62] B. E. Marchiori, C. E. Carraher, and K. Stiles, "Journal of Technology Management in China Company Article Title Page," J. Technol. Manag. China2, vol. 9, no. 3, pp. 274-288, 2014.

[63] H. Kagermann, "Change Through Digitization—Value Creation in the Age of Industry 4.0," in *Management of Permanent Change*, Wiesbaden: Springer Fachmedien Wiesbaden, 2015, pp. 23-45.

[64] A. Osterwalder and Y. Pigneur, *Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers*, vol. 5, no. 7. 2010.

[65] M. Mikusz, T. Schafer, T. Taraba, and C. Jud, "Transforming the connected car into a business model innovation," *Proc. - 2017 IEEE 19th Conf. Bus. Informatics, CBI 2017*, vol. 1, pp. 247-256, 2017.

[66] C. Arnold, D. Kiel, and K.-I. Voigt, "Innovative Business Models for the Industrial Internet of Things," *BHM Berg- und Hüttenmännische Monatshefte*, 2017.

[67] M. P. W, "Relationship Between Innovation Strategies and Competitive Advantage in the Logistics Firms in Mombasa County , Kenya By Mburu Paul Wanyoike a Research Project Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of B," 2016.

[68] A. A. Gaivoronski, P. J. Nesse, and O. B. Erdal, "Internet service provision and content services: Paid peering and competition between internet providers," Econ. Res. Electron. Netw., vol. 18, no. 1, pp. 43-79, 2017.

[69] R. R. Nelson and S. G. Winter, *An evolutionary theory of economic change*, vol. 93, no. 2. 1982.

**101**

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth…*

*DOI: http://dx.doi.org/10.5772/intechopen.95054*

[70] El-Darwiche Bahjat and Rupp Christine, "Aspiring to digital simplicity and clarity in strategic identity," 2017.

*Production, Life Cycle Engineering and Management(Managing Green Business* 

[71] A. Sommer, *Sustainable* 

*Model Transformations)*. 2012.

*Responding to Changes in Environmental Turbulence - A Strategy to Driving Business Growth… DOI: http://dx.doi.org/10.5772/intechopen.95054*

[70] El-Darwiche Bahjat and Rupp Christine, "Aspiring to digital simplicity and clarity in strategic identity," 2017.

*Circular Economy - Recent Advances, New Perspectives and Applications*

2016.

Performance," vol. 11, no. 3, pp. 231-241,

[62] B. E. Marchiori, C. E. Carraher, and K. Stiles, "Journal of Technology Management in China Company Article Title Page," J. Technol. Manag. China2,

[63] H. Kagermann, "Change Through Digitization—Value Creation in the Age of Industry 4.0," in *Management of Permanent Change*, Wiesbaden: Springer Fachmedien Wiesbaden, 2015, pp. 23-45.

[64] A. Osterwalder and Y. Pigneur, *Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers*, vol. 5, no. 7. 2010.

[65] M. Mikusz, T. Schafer, T. Taraba, and C. Jud, "Transforming the connected car into a business model innovation," *Proc. - 2017 IEEE 19th Conf. Bus. Informatics, CBI 2017*, vol. 1, pp.

[66] C. Arnold, D. Kiel, and K.-I. Voigt, "Innovative Business Models for the Industrial Internet of Things," *BHM Berg- und Hüttenmännische Monatshefte*,

[67] M. P. W, "Relationship Between Innovation Strategies and Competitive Advantage in the Logistics Firms in Mombasa County , Kenya By Mburu Paul Wanyoike a Research Project Submitted in Partial Fulfillment of the Requirements for the Award of the

Degree of Master of B," 2016.

vol. 18, no. 1, pp. 43-79, 2017.

vol. 93, no. 2. 1982.

[68] A. A. Gaivoronski, P. J. Nesse, and O. B. Erdal, "Internet service provision and content services: Paid peering and competition between internet providers," Econ. Res. Electron. Netw.,

[69] R. R. Nelson and S. G. Winter, *An evolutionary theory of economic change*,

247-256, 2017.

2017.

vol. 9, no. 3, pp. 274-288, 2014.

[54] D. Palacios, Æ. I. Gil, and Æ. F. Garrigos, "The impact of knowledge management on innovation and entrepreneurship in the biotechnology and telecommunications industries," pp.

[55] C. P. Killen, "Managing portfolio interdependencies: The effects of visual data representations on project portfolio decision making," Int. J. Manag. Proj. Bus., vol. 10, no. 4, pp.

[56] D. Jonas, "Empowering project portfolio managers: How management involvement impacts project portfolio management performance," Int. J. Proj. Manag., vol. 28, no. 8, pp. 818-831,

[57] D. J. Teece, "Explicating dynamic capabilities: the nature and micro foundations of (sustainable) enterprise performance," Strateg. Manag. J., vol. 28, no. 13, pp. 1319-1350, Dec. 2007.

[58] T. M. Kising'u, P. G. S. Namusonge, and D. F. M. Mwirigi, "The Role of Organizational Innovation in Sustainable Competitive Advantage in Universities in Kenya," Int. J. Soc. Sci. Humanit. Invent., vol. 3, no. 9, pp. 2762-

[59] J. M. Pinheiro, M. T. Preto, L. F. Lages, and G. M. Silva, "Knowledge creation, turbulence, and manufacturing flexibility roles in business performance and operations performance," *Knowl. Manag.*, no. 1996,

[60] S. K. Rao and R. Prasad, "Telecom Operators' Business Model Innovation in a 5G World," J. Multi Bus. Model Innov. Technol., vol. 4, no. 3, pp. 149-

[61] B. Wooldridge and S. W. Floyd, "The Strategy Process , Middle Management Involvement , and Organizational

291-301, 2009.

856-879, 2017.

2010.

2786, 2016.

pp. 16-28, 2016.

178, 2018.

**100**

[71] A. Sommer, *Sustainable Production, Life Cycle Engineering and Management(Managing Green Business Model Transformations)*. 2012.

**103**

loved ones.

**Chapter 7**

**Abstract**

**1. Introduction**

immediate threats to our lives [2].

Economy

*Jean Pierre Doussoulin*

COVID-19: Turning a Threat into

The current crisis dominates everything from health to day-to-day life. But it will pass over within a relatively short space of time and the economic recession seems likely to reverse the long-standing pattern. Given the gravity of the circumstances, nations have been constrained to undertake unusual approach arrangements. This article proposes a framework of the COVID-19 effect following analysis and comparison of the most prominent concepts of the public health and circular economy. Our paper helps to identify the positions of each of these concepts with regard to public health, environmental sustainability and economic growth. This study enriches the literature on the environmental sciences and public health by providing analysis of the effects of the policies. Finally, this article recognizes that there must be local action priorities that allow for small and sequential wins in

economic, health and environmental aspects in the territory.

**Keywords:** COVID-19, circular economy, waste, health, growth, environment

As a result of this pandemic, we can note the disappearance of questions and conversations related to climate change [1]. It seems that the lack of progress towards the objectives of the Paris agreement has disappeared into the background. What would once have been the center of attention in most forums and agendas does not even reach the inside pages of magazines or newscasts. Our global consciousness has shifted towards survival and transcendence, as a species, which are

This desire for transcendence allows us to analyze what happens when we are closer to the top of the pyramid and all our basic concepts are covered as in Maslow's pyramid [3]. With the pandemic around the world, we have all been taken down on some levels and we are now looking to protect ourselves and our

On the surface, it seems that all efforts, all activities and all initiatives have shifted away from the greatest threat to our planet, climate change, towards the

The desire for transcendence can also be expressed towards transhumanism and environmental sustainability. Transhumanism is a social movement predicated on

immediate and more tangible threat to our lives of COVID-19 [4].

an Opportunity for the Circular

#### **Chapter 7**

## COVID-19: Turning a Threat into an Opportunity for the Circular Economy

*Jean Pierre Doussoulin*

#### **Abstract**

The current crisis dominates everything from health to day-to-day life. But it will pass over within a relatively short space of time and the economic recession seems likely to reverse the long-standing pattern. Given the gravity of the circumstances, nations have been constrained to undertake unusual approach arrangements. This article proposes a framework of the COVID-19 effect following analysis and comparison of the most prominent concepts of the public health and circular economy. Our paper helps to identify the positions of each of these concepts with regard to public health, environmental sustainability and economic growth. This study enriches the literature on the environmental sciences and public health by providing analysis of the effects of the policies. Finally, this article recognizes that there must be local action priorities that allow for small and sequential wins in economic, health and environmental aspects in the territory.

**Keywords:** COVID-19, circular economy, waste, health, growth, environment

#### **1. Introduction**

As a result of this pandemic, we can note the disappearance of questions and conversations related to climate change [1]. It seems that the lack of progress towards the objectives of the Paris agreement has disappeared into the background. What would once have been the center of attention in most forums and agendas does not even reach the inside pages of magazines or newscasts. Our global consciousness has shifted towards survival and transcendence, as a species, which are immediate threats to our lives [2].

This desire for transcendence allows us to analyze what happens when we are closer to the top of the pyramid and all our basic concepts are covered as in Maslow's pyramid [3]. With the pandemic around the world, we have all been taken down on some levels and we are now looking to protect ourselves and our loved ones.

On the surface, it seems that all efforts, all activities and all initiatives have shifted away from the greatest threat to our planet, climate change, towards the immediate and more tangible threat to our lives of COVID-19 [4].

The desire for transcendence can also be expressed towards transhumanism and environmental sustainability. Transhumanism is a social movement predicated on

the belief that we can and should leave behind our biological condition by merging with technology [5]. Environmental sustainability is responsibly interacting with the planet to maintain natural resources and give the ability of future generations to meet their needs. It can be interpreted as an steady state economy [6]. This status depends on legal, thermodynamic, and economic aspects of ecosystem services [7, 8].

This chapter proposes a new regard of the circular economy following analysis of the most prominent issues related with COVID-19, government responses to the crisis and sustainability.

The significance of this article is that it addresses the criticisms of the circular economy paradigms by considering three dimensions of analysis related to the COVID-19 outbreak [9]. The increased demand for sustainable production processes post COVID-19 justifies the need for more effective policies with a focus on human health [1, 10].

#### **2. Methodology**

The methodology used in this paper takes sustainability, health care, economic growth and dimensions to provide an analysis related to COVID-19. **Figure 1** presents the analysis of how these three dimensions might be reinterpreted using the framework proposed by Doussoulin [9]. As shown in **Figure 1**, when π = 100%, z = 0 and w = 0, all attention dedicated by the government are apportioned to economic growth. Alternatively, if π = 0, z = 0 and w = 100%, then all attention is given to health care. It is also possible the attention to the earth as a natural resource, this can be represented by the point where π =0, z = 100% and w = 0, which corresponds to a sustainable future [11–13].

**Figure 1.** *Three dimensions: Economic growth, health care and sustainability. Source: [9]*

#### **3. Discussion**

This section outlines a set of matters involving the COVID-19 crisis through the exploration of three dimensions: sustainability, health care and economic growth, as follow:

**105**

*COVID-19: Turning a Threat into an Opportunity for the Circular Economy*

The circular economy has rapidly gathered momentum within sustainable development initiatives due to its potential for decoupling economic development and growth from resource consumption [14, 15]. The industrial circular economy corresponds to π =0, z = 100% and w = 0 in **Figure 1**. Manufacturing companies play a critical role in the implementation of the circular economy at the industrial level. Success with this role requires a rethinking of the overall value generation logic and the redefinition of business success, by reconfiguring existing business models or creating new business models for the circular

The transition of manufacturing companies' business models to the circular economy is still limited, with low market penetration across sectors. Among several external and internal barriers, manufacturing companies face shortcomings in capabilities and skills and require knowledge and scientific-based guidance for

Academic literature is unable to support companies adequately, due to a core gap related to the lack of systematized practices to provide guidance and advice to manufacturing companies during the design of business models for the circular economy [20]. Based on this gap, a design research methodology was applied in this research, with the objective of developing a theoretical framework to provide

The workload of the MSW (management solid waste) industry has increased due to significant rises in household consumption in Japan [22] and the construc-

The Center for Disease Control (CDC) is saying the same as the World Health Organization and also what Ocean is saying, that solid waste is not an effective vector for the transmission of corona virus from one person to another by being within six feet of that person. Something people need to be aware of when they are at work, whether it is collecting trash, recycling material or a disposal facility. The

That indicated that corona virus can live on cardboard for up to 24 hours, which causes some concerns in our industry. People are also urged to delay their spring cleaning. Individuals will admit that this has not always been succesfully communicated [25]. As people at home with a lot spare time, they are using it to clean out their attics, garages and basements, and this is generating a significant amount of material that has stressed the system to some extent. Authors are also communicating the importance of not reusing gloves and masks that people are now wearing

We can agree that generally individuals do not want to recycle. The material, even though it is mostly made of plastic, is not recycled on the curbside and unfortunately, what we have seen a great deal is many people throwing away gloves and masks on the street, in parking lots and in parks which is bad for public health in the environment [27]. The fact that some facilities are closing due to small amounts of coronavirus on things that are being handled, at a time when the commodity pricing is actually going up, is ironic. There have been a number of facilities that perform

business modeling within the context of the circular economy [18, 19].

guidance and advice for policy-makers and stakeholders [21].

CDC just late last week, issued a new waste specific fact sheet [24].

and that they should be thrown in the trash after use [26].

*DOI: http://dx.doi.org/10.5772/intechopen.94619*

*3.1.1 Industrial circular economy*

*3.1.2 Pressure on the MSW industry*

tion sector in France [23].

**3.1 Sustainability**

economy [16, 17].

#### **3.1 Sustainability**

*Circular Economy - Recent Advances, New Perspectives and Applications*

services [7, 8].

crisis and sustainability.

human health [1, 10].

**2. Methodology**

responds to a sustainable future [11–13].

the belief that we can and should leave behind our biological condition by merging with technology [5]. Environmental sustainability is responsibly interacting with the planet to maintain natural resources and give the ability of future generations to meet their needs. It can be interpreted as an steady state economy [6]. This status depends on legal, thermodynamic, and economic aspects of ecosystem

This chapter proposes a new regard of the circular economy following analysis of the most prominent issues related with COVID-19, government responses to the

The significance of this article is that it addresses the criticisms of the circular economy paradigms by considering three dimensions of analysis related to the COVID-19 outbreak [9]. The increased demand for sustainable production processes post COVID-19 justifies the need for more effective policies with a focus on

The methodology used in this paper takes sustainability, health care, economic

This section outlines a set of matters involving the COVID-19 crisis through the exploration of three dimensions: sustainability, health care and economic growth,

*Three dimensions: Economic growth, health care and sustainability. Source: [9]*

growth and dimensions to provide an analysis related to COVID-19. **Figure 1** presents the analysis of how these three dimensions might be reinterpreted using the framework proposed by Doussoulin [9]. As shown in **Figure 1**, when π = 100%, z = 0 and w = 0, all attention dedicated by the government are apportioned to economic growth. Alternatively, if π = 0, z = 0 and w = 100%, then all attention is given to health care. It is also possible the attention to the earth as a natural resource, this can be represented by the point where π =0, z = 100% and w = 0, which cor-

**104**

**3. Discussion**

as follow:

**Figure 1.**

#### *3.1.1 Industrial circular economy*

The circular economy has rapidly gathered momentum within sustainable development initiatives due to its potential for decoupling economic development and growth from resource consumption [14, 15]. The industrial circular economy corresponds to π =0, z = 100% and w = 0 in **Figure 1**. Manufacturing companies play a critical role in the implementation of the circular economy at the industrial level. Success with this role requires a rethinking of the overall value generation logic and the redefinition of business success, by reconfiguring existing business models or creating new business models for the circular economy [16, 17].

The transition of manufacturing companies' business models to the circular economy is still limited, with low market penetration across sectors. Among several external and internal barriers, manufacturing companies face shortcomings in capabilities and skills and require knowledge and scientific-based guidance for business modeling within the context of the circular economy [18, 19].

Academic literature is unable to support companies adequately, due to a core gap related to the lack of systematized practices to provide guidance and advice to manufacturing companies during the design of business models for the circular economy [20]. Based on this gap, a design research methodology was applied in this research, with the objective of developing a theoretical framework to provide guidance and advice for policy-makers and stakeholders [21].

#### *3.1.2 Pressure on the MSW industry*

The workload of the MSW (management solid waste) industry has increased due to significant rises in household consumption in Japan [22] and the construction sector in France [23].

The Center for Disease Control (CDC) is saying the same as the World Health Organization and also what Ocean is saying, that solid waste is not an effective vector for the transmission of corona virus from one person to another by being within six feet of that person. Something people need to be aware of when they are at work, whether it is collecting trash, recycling material or a disposal facility. The CDC just late last week, issued a new waste specific fact sheet [24].

That indicated that corona virus can live on cardboard for up to 24 hours, which causes some concerns in our industry. People are also urged to delay their spring cleaning. Individuals will admit that this has not always been succesfully communicated [25]. As people at home with a lot spare time, they are using it to clean out their attics, garages and basements, and this is generating a significant amount of material that has stressed the system to some extent. Authors are also communicating the importance of not reusing gloves and masks that people are now wearing and that they should be thrown in the trash after use [26].

We can agree that generally individuals do not want to recycle. The material, even though it is mostly made of plastic, is not recycled on the curbside and unfortunately, what we have seen a great deal is many people throwing away gloves and masks on the street, in parking lots and in parks which is bad for public health in the environment [27]. The fact that some facilities are closing due to small amounts of coronavirus on things that are being handled, at a time when the commodity pricing is actually going up, is ironic. There have been a number of facilities that perform

recycling that have actually closed. They closed because they were unable to provide sufficient social distancing between workers. However most facilities have been either installing Plexiglas separators between the sorters or pickers on the line or they have been separating the pickers [28, 29].

The commercial sector in the United States shut down a major source of recovered paper. A major source of clean, recovered paper was lost, and so it is our hope that, as the United States returns to something like the new normal, we will see that those paper sources in the commercial sector will be available to recycling facilities [30].

There is an interaction at the weighing facilities and to reduce the potential of exposure to the attendants who work there, the use of cash and the signing of documents is being eliminated. Other steps are being taken to ensure there is as little interaction as possible with customers at drop-off centers, where people go to drop off various types of materials such as glass, books or batteries. Those facilities have seen a significant increase in the number of customers that they are receiving so there is a need to keep the customers six feet apart from each other and also from the staff. Disposal facilities also pose a number of hazards and challenges when a waste, hauler or a private citizen goes through a small facility, whether it is by dumper truck or to bring some boxes from the household, hazardous waste or other material [31].

These facilities are urging people to wear masks. Some people are not happy being asked to wear them at some of the facilities. Some facilities have higher safety measures to maintain distance and enforce their rules. Curbside recycling collection has been suspended in several communities [31]. For the use of vehicles, at recycling plants and composting plants, a number of issues in handling the materials and during maintenance were coming up. In the United States, the drop-off centers are adding to the burden. People are very slowly beginning to go back to work and it is our expectation that this is going to continue and some authors will argue a decrease in the amount of residential waste and an increase in the amount of commercial waste being generated [32].

Things were coming to a point where waste management was at risk of stopping because of the worries of the workers and some of their employees, basically there was a very short time frame to sort this out. If it is a commercial collection, maybe it could be stopped, if it is a household collection, it probably could not be, and it cannot be run by a single person because of health and safety or other issues. People could then think about transporting individuals separately through the collection point, and some local authorities in the UK have been taking that approach where they have individually taken collections, from the curbside where the transfer has been done. Other solutions might be screens in the cabs, therefore there is a guidance on screens [33].

There are health and safety issues in assessing the safety of the screen and the material. Whether or not the driver can see through it, whether they can get out of a vehicle safely if there is an accident, and if it is effective in case somebody sneezes and if it will really stop an aerosol from circulating in a cab. There has been quite a lot in the media about viral load and long term exposure to viral load [34].

To what extent can some of the lessons learned in UK composting sites and reducing work exposure to aerosols be translated to the virus or are the particles too small? Authors argued that the reason that has happened is because people in their homes are seeing all this waste being generated and being putting out on the curb which is not usual and seeing it taken away by trucks [35]. Normally, when the garbage truck comes to the house, people are not at home, they are at work, and so the fact that there are these people out there every single day performing this essential service when citizens are told to stay at home has been a way to reinforce the importance of the industry. Authors argue that in the long term, this will

**107**

*COVID-19: Turning a Threat into an Opportunity for the Circular Economy*

component of the virus can live on cardboard for a while [36].

ment facilities and a shift in the internal movement of waste [40].

about extra storage and extra capacity.

*3.2.1 Personal protective equipment and COVID-19*

**3.2 Health care**

time of crisis [42].

It is possible to improve recycling in the time of COVID-19. Particularly, People have to think about the fact that if houses are separating their recyclables or households, they cannot contaminate themselves. There is no reason that any city should tell its citizens not to continue recycling. The point is that only recyclables from one household, which only people in that household have touched, are put out for collection for recycling or put into a bin where somebody else will empty. It does require that cities who find recycling to be important at the city level should think

We are living in unstable and uncertain times due to current health, economic and social instabilities [41]. The significant challenges to the waste industry are putting authorities and waste workers under significant pressure. That is where it is our duty to ensure that our members and the waste management industry have knowledge and information to keep our towns and cities clean and healthy. Proper waste management is an essential public service that cannot be overlooked in this

Pandemics prove to the public worldwide that for crucial issues, scientific support of political decisions and data-driven decision-making is absolutely necessary for a

*3.1.3 Facilities dedicated to hazardous waste treatment*

benefit the industry in a number of things, but in the short-term, we will continue to have challenges related to reducing exposure because, unfortunately, the virus is very contagious compared to other diseases. It spreads easily, and at least some

There is limited research on the viability of this virus in the recycling stream. As pointed out earlier, we need to make sure that those workers who are working with recycling are not touching the recycled material and being infected by

It is a terrible pandemic, so in terms of waste we have to make sure that people are managing it safely. It also highlights deficiencies in the system in the past which individuals are now having to correct to ensure the health and safety of the workers properly. Maybe now people need to address how we protect our workers in general. People need to make the point and highlight the fact that the message must be quite clear to the citizens and to the overall community through different channels that separate collection and recycling services are a part of the overall waste management system and part of those essential services that must keep running [38]. It would be a bad thing if the message that was sent out was that these kinds of services can be interrupted or can be stopped. The support of the people is needed and would be difficult to get back if lost, as all international researchers assert [39]. It would be interesting to analyze where facilities dedicated to hazardous waste treatment are lacking and countries where sufficient capacities exist. The import of hazardous waste from outside the EU is worrying not because of the lack of business, but because it means that potentially stockpiles of hazardous waste will grow and grow in the coming months, with all associated risks for health and the environment. Authors argue that increase is not really the right word to best define the situation. It would be better to say shift: there is a shift in terms of the nature of hazardous waste, a shift from non-dedicated to dedicated hazardous waste treat-

*DOI: http://dx.doi.org/10.5772/intechopen.94619*

COVID-19 [37].

benefit the industry in a number of things, but in the short-term, we will continue to have challenges related to reducing exposure because, unfortunately, the virus is very contagious compared to other diseases. It spreads easily, and at least some component of the virus can live on cardboard for a while [36].

#### *3.1.3 Facilities dedicated to hazardous waste treatment*

*Circular Economy - Recent Advances, New Perspectives and Applications*

they have been separating the pickers [28, 29].

commercial waste being generated [32].

material [31].

ance on screens [33].

recycling that have actually closed. They closed because they were unable to provide sufficient social distancing between workers. However most facilities have been either installing Plexiglas separators between the sorters or pickers on the line or

The commercial sector in the United States shut down a major source of recovered paper. A major source of clean, recovered paper was lost, and so it is our hope that, as the United States returns to something like the new normal, we will see that those paper sources in the commercial sector will be available to recycling facilities [30]. There is an interaction at the weighing facilities and to reduce the potential of exposure to the attendants who work there, the use of cash and the signing of documents is being eliminated. Other steps are being taken to ensure there is as little interaction as possible with customers at drop-off centers, where people go to drop off various types of materials such as glass, books or batteries. Those facilities have seen a significant increase in the number of customers that they are receiving so there is a need to keep the customers six feet apart from each other and also from the staff. Disposal facilities also pose a number of hazards and challenges when a waste, hauler or a private citizen goes through a small facility, whether it is by dumper truck or to bring some boxes from the household, hazardous waste or other

These facilities are urging people to wear masks. Some people are not happy being asked to wear them at some of the facilities. Some facilities have higher safety measures to maintain distance and enforce their rules. Curbside recycling collection has been suspended in several communities [31]. For the use of vehicles, at recycling plants and composting plants, a number of issues in handling the materials and during maintenance were coming up. In the United States, the drop-off centers are adding to the burden. People are very slowly beginning to go back to work and it is our expectation that this is going to continue and some authors will argue a decrease in the amount of residential waste and an increase in the amount of

Things were coming to a point where waste management was at risk of stopping because of the worries of the workers and some of their employees, basically there was a very short time frame to sort this out. If it is a commercial collection, maybe it could be stopped, if it is a household collection, it probably could not be, and it cannot be run by a single person because of health and safety or other issues. People could then think about transporting individuals separately through the collection point, and some local authorities in the UK have been taking that approach where they have individually taken collections, from the curbside where the transfer has been done. Other solutions might be screens in the cabs, therefore there is a guid-

There are health and safety issues in assessing the safety of the screen and the material. Whether or not the driver can see through it, whether they can get out of a vehicle safely if there is an accident, and if it is effective in case somebody sneezes and if it will really stop an aerosol from circulating in a cab. There has been quite a lot in the media about viral load and long term exposure to viral load [34]. To what extent can some of the lessons learned in UK composting sites and reducing work exposure to aerosols be translated to the virus or are the particles too small? Authors argued that the reason that has happened is because people in their homes are seeing all this waste being generated and being putting out on the curb which is not usual and seeing it taken away by trucks [35]. Normally, when the garbage truck comes to the house, people are not at home, they are at work, and so the fact that there are these people out there every single day performing this essential service when citizens are told to stay at home has been a way to reinforce the importance of the industry. Authors argue that in the long term, this will

**106**

There is limited research on the viability of this virus in the recycling stream. As pointed out earlier, we need to make sure that those workers who are working with recycling are not touching the recycled material and being infected by COVID-19 [37].

It is a terrible pandemic, so in terms of waste we have to make sure that people are managing it safely. It also highlights deficiencies in the system in the past which individuals are now having to correct to ensure the health and safety of the workers properly. Maybe now people need to address how we protect our workers in general. People need to make the point and highlight the fact that the message must be quite clear to the citizens and to the overall community through different channels that separate collection and recycling services are a part of the overall waste management system and part of those essential services that must keep running [38]. It would be a bad thing if the message that was sent out was that these kinds of services can be interrupted or can be stopped. The support of the people is needed and would be difficult to get back if lost, as all international researchers assert [39].

It would be interesting to analyze where facilities dedicated to hazardous waste treatment are lacking and countries where sufficient capacities exist. The import of hazardous waste from outside the EU is worrying not because of the lack of business, but because it means that potentially stockpiles of hazardous waste will grow and grow in the coming months, with all associated risks for health and the environment. Authors argue that increase is not really the right word to best define the situation. It would be better to say shift: there is a shift in terms of the nature of hazardous waste, a shift from non-dedicated to dedicated hazardous waste treatment facilities and a shift in the internal movement of waste [40].

It is possible to improve recycling in the time of COVID-19. Particularly, People have to think about the fact that if houses are separating their recyclables or households, they cannot contaminate themselves. There is no reason that any city should tell its citizens not to continue recycling. The point is that only recyclables from one household, which only people in that household have touched, are put out for collection for recycling or put into a bin where somebody else will empty. It does require that cities who find recycling to be important at the city level should think about extra storage and extra capacity.

#### **3.2 Health care**

#### *3.2.1 Personal protective equipment and COVID-19*

We are living in unstable and uncertain times due to current health, economic and social instabilities [41]. The significant challenges to the waste industry are putting authorities and waste workers under significant pressure. That is where it is our duty to ensure that our members and the waste management industry have knowledge and information to keep our towns and cities clean and healthy. Proper waste management is an essential public service that cannot be overlooked in this time of crisis [42].

Pandemics prove to the public worldwide that for crucial issues, scientific support of political decisions and data-driven decision-making is absolutely necessary for a

proper response so a new relationship between science and policy is needed. This is something that has been lacking in waste management the last ten or fifteen years [43].

This period marks a return of single-use plastics after three years of efforts to ban them under a specific framework. Thus, single-use plastics are coming back today and this time also with gloves, with masks and with personal protective equipment that might be infectious [27].

This difficult period is not a reason to change our policies and circular economics for plastics and single-use plastics. Authors argue that the plastic industry is trying to use the pandemics as an excuse to delay any new regulation or secretly use plastics, both at a European or national level [44, 45].

We have a range of wastes being generated at the moment and initially it comes down to segregation and while people may be seeing the volumes of personal protective equipment (PPE) and other medical wastes increasing, we have to look at the relative risk of those wastes. Waste from people who treat a COVID-19 patient, will be particularly risky. [46].

A lot of medical waste will be produced. There will also be some pharmaceutical waste. There will be ventilated type waste; there will be collection mechanisms for contaminated waste, and proper, genuine medical waste. These wastes need to be collected and treated appropriately, not necessarily by incineration where alternative treatments are in place. They should be genuinely treated as infectious medical wastes. There will be a lot more medical waste in our general waste. It has been argued that if we start to call them social distancing wastes rather than medical wastes, even though they look like medical wastes, some distinctions may be able to be made [47, 48].

#### *3.2.2 COVID-19 and HIV virus*

Authors claim that many of the patients who have COVID-19 who are very sick and also have other conditions as well. In addition to dealing with the pandemic, people also need to consider that those wastes may also have hepatitis or HIV, as well as those other viruses that we would normally manage as healthcare waste [40, 49]. Individuals have to be aware of the fact that, while this is a very serious pandemic, there are other people that are sick with other diseases, and we have to ensure that these other conditions are managed.

As well as waste, there are other contaminants that could be present. People should be treating anything that is known to be infectious or reliably suspected, and this is where it is not necessary that PPE is classified as medical waste. While authors are seeing pressure from an increasing volume and a decrease in weight into the system, we have to still make sure that we are taking care of health. In effect, COVID-19 is like a little ball of genetic material with a fatty inside with a little protein sticking out of it. People need to ensure that people can use heat when necessary, but not necessarily high temperance in washing. It would be useful to have facilities for washing clothes and washing linen. These wastes should be kept out of the waste stream. People need to ensure that the threat against waste workers is mitigated and that may be done by social distancing and PPE. Welfare facilities that ensure that people can wash their hands should also be given because it is not a good idea that more people get sick [50].

It would also be useful to have facilities to ensure that people can maintain not only their personal hygiene, but also environmental hygiene. As authors argue, as there is an increase in the volume of waste arriving to waste facilities, all need to be operating effectively in this situation. It depends on existing infrastructures and the capacities for the treatment of hazardous waste and it also depends on the strictness of lockdown and how it impacts the industrial activities. It is important to say that the other waste treatment facilities never stop during the crisis. Part of the

**109**

*COVID-19: Turning a Threat into an Opportunity for the Circular Economy*

healthcare waste is treated in hazardous waste incinerators and, during this period, where the quantity and mostly the volume of this care waste rises by twenty to forty

A change in the distribution of the different categories of hazardous waste has been observed. Some industrial activities work intensively, for example, the pharmaceutical sector, and others slow down or have even stopped completely, such as the automotive industry and all the suppliers, hazardous waste from households and hazardous waste in small quantities, drums or buckets from refuse collectors. Another important aspect is those non dedicated facilities which treat hazardous waste as a side activity, have slowed down or drastically reduced or even shut down, such as part of the cement industry due to the stopping of activity in the construction sector. Companies have dedicated operators for the treatment of hazardous waste, and they have been able to take over. If we take the case of Europe, we face an increase of transboundary shipments from within the EU to countries where

Waste management has been classed as an essential public service in most countries, which means waste management professionals must navigate the health and safety risks related to coronavirus, although, information about the virus is still evolving [52]. It is essential that countries ensure that waste workers, especially frontline collection and processing employees, are afforded maximum protection and remain safe and can support communities in mitigating the spread of the virus [44]. The medical issue corresponds to π =0, z = 0 and w = 100% in **Figure 1**. Some governments have been talking somewhat about the role of the public in protecting solid waste workers [53]. One of the byproducts of the corona virus epidemic has been a very significant increase in the amount of residential recycling and that includes making waste materials safe. The government recommends that people do not use loose tissues or wipes to clean down something that could impact

French and Spanish citizens claim that the first challenge at the beginning of the crisis was to state which of their activities was essential, ensuring that all employees who have to be on-site to operate the facilities can circulate freely during lockdown and be able to secure supplies opportunely. Also, subcontractors facilitate the help of authorities in case of problems. The second action concerned, behaviors and work practices. New safety measures should be applied in order to protect workers by adapting the management of operation teams and their way of working and deploying teleworking. For all others, and last but not least, all necessary personal protective equipment should be provided to everybody, which is probably the

We are in the middle of the storm, which does not allow us to see clearly what is coming. But at present the most important thing is to take care of people's health and then employment, which means that people have to understand that we are

A recurring question relates to the time frame in which we will emerge from this crisis. In this sense, the recovery curve represents the impact of coronavirus on the economy. This can have a V- shape if the stoppage is abrupt and the reactivation is rapid, which would not be the effect of COVID-19 for many countries. If economic indicators take longer to reach the levels they were before the recession, a U- shape

*DOI: http://dx.doi.org/10.5772/intechopen.94619*

treatment capacities are lacking [38].

trickiest point during this crisis [54, 55].

**3.3 Economic growth in COVID-19**

experiencing a crisis.

the workers [10].

*3.2.3 Medical waste recycling and government issue*

percent, all permitted capacities are used [31, 51].

#### *COVID-19: Turning a Threat into an Opportunity for the Circular Economy DOI: http://dx.doi.org/10.5772/intechopen.94619*

*Circular Economy - Recent Advances, New Perspectives and Applications*

equipment that might be infectious [27].

will be particularly risky. [46].

*3.2.2 COVID-19 and HIV virus*

these other conditions are managed.

good idea that more people get sick [50].

plastics, both at a European or national level [44, 45].

proper response so a new relationship between science and policy is needed. This is something that has been lacking in waste management the last ten or fifteen years [43]. This period marks a return of single-use plastics after three years of efforts to ban them under a specific framework. Thus, single-use plastics are coming back today and this time also with gloves, with masks and with personal protective

This difficult period is not a reason to change our policies and circular economics for plastics and single-use plastics. Authors argue that the plastic industry is trying to use the pandemics as an excuse to delay any new regulation or secretly use

We have a range of wastes being generated at the moment and initially it comes

A lot of medical waste will be produced. There will also be some pharmaceutical waste. There will be ventilated type waste; there will be collection mechanisms for contaminated waste, and proper, genuine medical waste. These wastes need to be collected and treated appropriately, not necessarily by incineration where alternative treatments are in place. They should be genuinely treated as infectious medical wastes. There will be a lot more medical waste in our general waste. It has been argued that if we start to call them social distancing wastes rather than medical wastes, even though they look like medical wastes, some distinctions may be able to be made [47, 48].

Authors claim that many of the patients who have COVID-19 who are very sick and also have other conditions as well. In addition to dealing with the pandemic, people also need to consider that those wastes may also have hepatitis or HIV, as well as those other viruses that we would normally manage as healthcare waste [40, 49]. Individuals have to be aware of the fact that, while this is a very serious pandemic, there are other people that are sick with other diseases, and we have to ensure that

As well as waste, there are other contaminants that could be present. People should be treating anything that is known to be infectious or reliably suspected, and this is where it is not necessary that PPE is classified as medical waste. While authors are seeing pressure from an increasing volume and a decrease in weight into the system, we have to still make sure that we are taking care of health. In effect, COVID-19 is like a little ball of genetic material with a fatty inside with a little protein sticking out of it. People need to ensure that people can use heat when necessary, but not necessarily high temperance in washing. It would be useful to have facilities for washing clothes and washing linen. These wastes should be kept out of the waste stream. People need to ensure that the threat against waste workers is mitigated and that may be done by social distancing and PPE. Welfare facilities that ensure that people can wash their hands should also be given because it is not a

It would also be useful to have facilities to ensure that people can maintain not only their personal hygiene, but also environmental hygiene. As authors argue, as there is an increase in the volume of waste arriving to waste facilities, all need to be operating effectively in this situation. It depends on existing infrastructures and the capacities for the treatment of hazardous waste and it also depends on the strictness of lockdown and how it impacts the industrial activities. It is important to say that the other waste treatment facilities never stop during the crisis. Part of the

down to segregation and while people may be seeing the volumes of personal protective equipment (PPE) and other medical wastes increasing, we have to look at the relative risk of those wastes. Waste from people who treat a COVID-19 patient,

**108**

healthcare waste is treated in hazardous waste incinerators and, during this period, where the quantity and mostly the volume of this care waste rises by twenty to forty percent, all permitted capacities are used [31, 51].

A change in the distribution of the different categories of hazardous waste has been observed. Some industrial activities work intensively, for example, the pharmaceutical sector, and others slow down or have even stopped completely, such as the automotive industry and all the suppliers, hazardous waste from households and hazardous waste in small quantities, drums or buckets from refuse collectors. Another important aspect is those non dedicated facilities which treat hazardous waste as a side activity, have slowed down or drastically reduced or even shut down, such as part of the cement industry due to the stopping of activity in the construction sector. Companies have dedicated operators for the treatment of hazardous waste, and they have been able to take over. If we take the case of Europe, we face an increase of transboundary shipments from within the EU to countries where treatment capacities are lacking [38].

#### *3.2.3 Medical waste recycling and government issue*

Waste management has been classed as an essential public service in most countries, which means waste management professionals must navigate the health and safety risks related to coronavirus, although, information about the virus is still evolving [52]. It is essential that countries ensure that waste workers, especially frontline collection and processing employees, are afforded maximum protection and remain safe and can support communities in mitigating the spread of the virus [44]. The medical issue corresponds to π =0, z = 0 and w = 100% in **Figure 1**.

Some governments have been talking somewhat about the role of the public in protecting solid waste workers [53]. One of the byproducts of the corona virus epidemic has been a very significant increase in the amount of residential recycling and that includes making waste materials safe. The government recommends that people do not use loose tissues or wipes to clean down something that could impact the workers [10].

French and Spanish citizens claim that the first challenge at the beginning of the crisis was to state which of their activities was essential, ensuring that all employees who have to be on-site to operate the facilities can circulate freely during lockdown and be able to secure supplies opportunely. Also, subcontractors facilitate the help of authorities in case of problems. The second action concerned, behaviors and work practices. New safety measures should be applied in order to protect workers by adapting the management of operation teams and their way of working and deploying teleworking. For all others, and last but not least, all necessary personal protective equipment should be provided to everybody, which is probably the trickiest point during this crisis [54, 55].

#### **3.3 Economic growth in COVID-19**

We are in the middle of the storm, which does not allow us to see clearly what is coming. But at present the most important thing is to take care of people's health and then employment, which means that people have to understand that we are experiencing a crisis.

A recurring question relates to the time frame in which we will emerge from this crisis. In this sense, the recovery curve represents the impact of coronavirus on the economy. This can have a V- shape if the stoppage is abrupt and the reactivation is rapid, which would not be the effect of COVID-19 for many countries. If economic indicators take longer to reach the levels they were before the recession, a U- shape

may appear. Finally, if the crisis implies a recession in the economy and a very slow recovery, we would be describing the L-shape [56].

There is widespread uncertainty about the economic effects of the crisis [57]. Some authors argue that the recovery will be similar to that which occurred in China between 2005 and 2013, following the tendency of L-shaped growth [58]. This economic effect may be very different in the other countries. In this case, what counts is the adaptation of the population to this "new normality" [59].

This means that people have to adapt quickly, and be flexible in how they proceed. People have to understand that spirits are exacerbated, and act accordingly, both for employees and employers [60]. The second thing is to know that we are in a situation that demands priorities, and here it is the health issue. It would be interesting to measure this problem and understand that very complex weeks are coming, and take measures to try to stop or mitigate the impacts on the environment through the application of waste management policies [44].

In the first part of this chapter we described three dimensions of analysis, now we will briefly delve into the economic dimension. The economic growth and labor issues corresponds to π = 100%, z = 0 and w = 0 in **Figure 1**. It is useful to recognize waste management workers by definition, formal and informal, in daily contact with waste, who are more vulnerable than other categories of the population to potential health problems.

In this way, one of the key issues that is arising all over the world is the need to protect waste workers, formal or informal, as a special asset that provides an essential service. Not only the International Labour Organization, but also many unions and NGOs are advocating putting the protection of waste workers in the center of our attention in this period. For countries outside of the EU and North America, outside of the high-income countries, most recycling is done by independent or informal recyclists who collect materials simply to feed their families [41].

Some countries which have informal recyclers are countries such as South Africa, but also some countries in Europe such as Serbia. There are many people who cannot eat because they are in lockdown. They would normally be picking up recyclables and now they are not allowed to go out. Also people who are in formalized recycling situations. For those in Colombia or Brazil, the government often tells people to stop recycling. At the same time, we even see in the Netherlands a tremendous amount of littering, and so the environment is changing quickly and nobody is really thinking about what these informal workers actually need [61].

Some authors claim that recycling is determined by the country's income level. Low and middle income countries where most recycling happens by independent or informal recyclers, whether formalized as in Brazil and Colombia, or tolerated or semi formalized as in India should have these systems reestablished [62]. What is really important is to figure out a way for them to continue to provide the service that they provide for the city by managing its recyclables and giving the people and their families a way of making a living by thinking actively about how they can safely go about their work [40].

#### **4. Conclusions**

We really hope that the post-crisis crisis will be the momentum for radical change in society worldwide. We also propose that people should be referring to expert guidance, not only from their national and regional governments, but also coming out of the World Health Organization and also for low-and middle-income countries.

**111**

**Author details**

Paris, France

Jean Pierre Doussoulin1,2

jean-pierre.doussoulin@u-pem.fr

provided the original work is properly cited.

1 Universidad Austral de Chile, Economic Institute, Valdivia, Chile

\*Address all correspondence to: jean.doussoulin@uach.cl;

2 Université Gustave Eiffel, Research Team on the Use of Panel Data in Economics,

© 2020 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium,

*COVID-19: Turning a Threat into an Opportunity for the Circular Economy*

resources, not mention which trials and which patients?

recovery efforts between these dimensions? How to allocate time and humans

In this chapter we have not wanted to give specialized answers from an economic, or medical or environmental point of view, but rather to relate these

There is an abundance of guidance to discuss about the economy, and to adapt it for the environment, and economically, an austere fiscal policy, which prioritizes employment and reactivation, through the optimization of resources and efforts. We need to reprioritize our priorities. What is important and what is not important is central, and this is why we also need to face changes in human behavior. We want to argue that one of the things that seem to be a very important thing is the idea of solidarity. It is just a matter of finding it with respect to health care waste because there is a great deal that has been written and it is just necessary that persons access that which it is suitable for the situation. We can build all this knowledge

The government response needs to act on three issues. First, to ensure that essential services are carried out without any interruption. Secondly, to ensure worker's safety above any other measure, because we need these teams, we need these people, and we need these heroes on the streets and, thirdly, we need to ensure frequent and easy communication to the citizens to stop fake news and to

Finally, a good way to face the crisis is to win small battles, in health, through the territorial management of contagions, in the environment avoiding very long-term

objectives, and instead targeting more short- and medium-term goals.

*DOI: http://dx.doi.org/10.5772/intechopen.94619*

answers to other topics of interest to society.

during this new situation, every one of us.

avoid dissemination of misunderstanding.

The COVID-19 crisis assumes that the effects are divided among economic growth, medical and sustainability. So how do we distribute the effect and the

#### *COVID-19: Turning a Threat into an Opportunity for the Circular Economy DOI: http://dx.doi.org/10.5772/intechopen.94619*

recovery efforts between these dimensions? How to allocate time and humans resources, not mention which trials and which patients?

In this chapter we have not wanted to give specialized answers from an economic, or medical or environmental point of view, but rather to relate these answers to other topics of interest to society.

There is an abundance of guidance to discuss about the economy, and to adapt it for the environment, and economically, an austere fiscal policy, which prioritizes employment and reactivation, through the optimization of resources and efforts.

We need to reprioritize our priorities. What is important and what is not important is central, and this is why we also need to face changes in human behavior. We want to argue that one of the things that seem to be a very important thing is the idea of solidarity. It is just a matter of finding it with respect to health care waste because there is a great deal that has been written and it is just necessary that persons access that which it is suitable for the situation. We can build all this knowledge during this new situation, every one of us.

The government response needs to act on three issues. First, to ensure that essential services are carried out without any interruption. Secondly, to ensure worker's safety above any other measure, because we need these teams, we need these people, and we need these heroes on the streets and, thirdly, we need to ensure frequent and easy communication to the citizens to stop fake news and to avoid dissemination of misunderstanding.

Finally, a good way to face the crisis is to win small battles, in health, through the territorial management of contagions, in the environment avoiding very long-term objectives, and instead targeting more short- and medium-term goals.

### **Author details**

*Circular Economy - Recent Advances, New Perspectives and Applications*

recovery, we would be describing the L-shape [56].

potential health problems.

safely go about their work [40].

**4. Conclusions**

may appear. Finally, if the crisis implies a recession in the economy and a very slow

There is widespread uncertainty about the economic effects of the crisis [57]. Some authors argue that the recovery will be similar to that which occurred in China between 2005 and 2013, following the tendency of L-shaped growth [58]. This economic effect may be very different in the other countries. In this case, what

This means that people have to adapt quickly, and be flexible in how they proceed. People have to understand that spirits are exacerbated, and act accordingly, both for employees and employers [60]. The second thing is to know that we are in a situation that demands priorities, and here it is the health issue. It would be interesting to measure this problem and understand that very complex weeks are coming, and take measures to try to stop or mitigate the impacts on the environ-

In the first part of this chapter we described three dimensions of analysis, now we will briefly delve into the economic dimension. The economic growth and labor issues corresponds to π = 100%, z = 0 and w = 0 in **Figure 1**. It is useful to recognize waste management workers by definition, formal and informal, in daily contact with waste, who are more vulnerable than other categories of the population to

In this way, one of the key issues that is arising all over the world is the need to protect waste workers, formal or informal, as a special asset that provides an essential service. Not only the International Labour Organization, but also many unions and NGOs are advocating putting the protection of waste workers in the center of our attention in this period. For countries outside of the EU and North America, outside of the high-income countries, most recycling is done by independent or informal recyclists who collect materials simply to feed their families [41]. Some countries which have informal recyclers are countries such as South Africa, but also some countries in Europe such as Serbia. There are many people who cannot eat because they are in lockdown. They would normally be picking up recyclables and now they are not allowed to go out. Also people who are in formalized recycling situations. For those in Colombia or Brazil, the government often tells people to stop recycling. At the same time, we even see in the Netherlands a tremendous amount of littering, and so the environment is changing quickly and nobody is really thinking about what these informal workers actually need [61]. Some authors claim that recycling is determined by the country's income level. Low and middle income countries where most recycling happens by independent or informal recyclers, whether formalized as in Brazil and Colombia, or tolerated or semi formalized as in India should have these systems reestablished [62]. What is really important is to figure out a way for them to continue to provide the service that they provide for the city by managing its recyclables and giving the people and their families a way of making a living by thinking actively about how they can

We really hope that the post-crisis crisis will be the momentum for radical change in society worldwide. We also propose that people should be referring to expert guidance, not only from their national and regional governments, but also coming out of the World Health Organization and also for low-and middle-income countries. The COVID-19 crisis assumes that the effects are divided among economic growth, medical and sustainability. So how do we distribute the effect and the

counts is the adaptation of the population to this "new normality" [59].

ment through the application of waste management policies [44].

**110**

Jean Pierre Doussoulin1,2

1 Universidad Austral de Chile, Economic Institute, Valdivia, Chile

2 Université Gustave Eiffel, Research Team on the Use of Panel Data in Economics, Paris, France

\*Address all correspondence to: jean.doussoulin@uach.cl; jean-pierre.doussoulin@u-pem.fr

© 2020 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/ by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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### *Edited by Tao Zhang*

Nowadays, the restriction of resources and the environment is very severe. A circular economy is the only way to sustainable development, but how this works still needs more exploration. The series of studies carried out by the author are described in detail in this book.

Published in London, UK © 2021 IntechOpen © Ratchat / iStock

Circular Economy - Recent Advances, New Perspectives and Applications

Circular Economy

Recent Advances, New Perspectives

and Applications

*Edited by Tao Zhang*