General Concept of Business Process Measures in the Circular Economy

Abstract

The presented research has been embedded in a dynamically developing circular economy. Nowadays, it is more and more often referred to as an alternative economy model to the linear economy model. The principal aim of the research is to develop a general concept of business process measures. It was built on five key principles. They are (1) the principle of Institutional Determinants of Business Processes, (2) the principle of rational change of state, (3) the principle of incorrect definition of determinants, (4) the principle of rational determinants and (5) the principle of the intensity of the impact of determinants. The research mainly used the extensive literature on the subject, which was primarily aimed at showing the context of the circular economy. The concept itself mainly uses the methods and principles of process management. The rules of the Petri nets were used to define the key principles of the presented concept. Ultimately, it turned out that the proposed approach to business measurements can be helpful in managing environmental, social and governance factors also in small- and medium-sized enterprises. The most important result of the research can be presented in a specific theorem. The effective achievement of business process goals, in a circular economy, may depend on the adaptation and use of a wide stream of institutional determinants that make up a holistic environment for socio-economic phenomena taking place in the company. This may be possible thanks to the use of the general concept of business process metrics, which allows identifying and eliminating negative internal and external effects.