Aiming for bullseye: a novel gameplan for circular economy in the construction industry

Abstract

PurposeThe paper aims to provide managerial recommendations for implementing circular economy (CE) principles in both organizational and interorganizational contexts, including when using digital tools, such as building information modeling (BIM) and blockchain. Drawn from the construction sector in the Netherlands, the findings can be generalized to similar sectors where a company may receive multiple inputs as part of its supply chain augmented by digital technologies.Design/methodology/approachDesign addresses the research question: what are the strategic and tactical approaches of organizations on the CE pathway? Sub-questions target initiatives pursued by participants, and look toward information, roles and functions for supporting the CE process. Applying a multiple-case study approach (21 semi-structured interviews with 29 participants) the paper explores strategic initiatives of construction companies implementing CE pathways. The strength of the research design comes from facilitation of rich and deep qualitative insights from Netherlands-based managers embedded within global supply chains contributing to conceptual mapping. A limitation is data from one country (though representing both national and multinational companies).FindingsInterviewed managers share guidance for production-related construction companies anchored in materials and product design. Recommendations include to (1) develop both internally and externally the awareness of CE amongst leaders, (2) communicate with internal and external stakeholders for shared vision across the supply chain, (3) start with pilot projects, and (4) ensure product data-integration for CE business models through computer modeling and blockchain for decision-making processes, choices of materials, business model coordination and product (re)design. Continuous learning about CE roles and responsibilities amidst organizational process restructuring is required throughout linear to CE transitions. Extending the time for the CE principles evaluation process would allow for reconsideration of decisions made for CE implemented projects.Originality/valueA novel CE gameplan with a hurdles and recommendations checklist provides an operational interface with decision making points between internal factors for the host organization and external supply chain partners.