Conceptualization of a methodology for circular value creation in SMEs in one-off production

Abstract

Implementing a circular economy (CE) is essential to achieving the long-term goal of carbon neutrality. Therefore, circular economy becomes increasingly relevant in the manufacturing industry. As small and medium-sized enterprises (SMEs) constitute a large part of the manufacturing industry, without them, a wide-ranging circular economy would not be possible. However, various structural barriers across the three dimensions of value creation – process, resource and organization – hinder the adoption of circular practices in SMEs. The difficulty of implementing circular practices is especially true for SMEs in one-off production with highly customized products and low process repeatability. Corporate survival in a circular world means these SMEs must transform themselves in the long term. Therefore, this paper aims to conceptualize a methodology for transforming SMEs in one-off production towards circular value creation. To this end, this research summarizes and analyzes existing barriers in the literature and then derives the requirements for the methodology. It finishes by conceptualizing the methodology by outlining the individual steps.