Interdependency Matrix to Evaluate Influence Factors in Circular Value Creation Systems

Abstract

The circular economy is one of the emerging trends in value creation systems, which emphasises the efficient use of resources, minimising waste and the loss of value added as well as replacing the concept of “end of life” for products and services in value creation systems. Since many of products and complementary services available on the market are not designed for circularity, it is challenging to convert the linear product life to a circular life cycle. However, conceptualise value creation systems that are suitable for a circular economy is a challenge, as a large number of influence factors are interrelated. Thereby not all influence factors reinforce each other, but can also have no or even a negative influence. Thus, in order to make the mutual influence transparent and create a holistic understanding of how the circularity can be implemented in value creation systems, this paper proposes an interdependency matrix which is enhancing the decision-making in the conception of circular value creation systems. The research design follows the mixed method approach. First, a literature review is carried out to review the state of the art. The research is extended by structuring relevant influence factors in the design of circular value creation. The findings from the literature research are supplemented by expert knowledge from industry and research. Finally, the findings are then incorporated into the development of the interdependency matrix. The assessment of the correlations between the individual influence factors is based on unique morphologies. A case study serves as a reference and framework for the application of the developed interdependency matrix. In order to validate and further develop the interdependency matrix, a verification process is carried out by creating application examples for the developed case study. The application examples serve as practical instances to test the applicability and resilience of the interdependency matrix. The proposed interdependency matrix shows which influence factors have correlations to each other – a distinction is made between whether the influence has a positive or negative effect. It also shows which influence factors are to be considered independently and for which influence factors a statement about their correlation is only possible depending on the specific situation in the value creation system. The core of this study is the determination and evaluation of the correlations, which the influence factors of a circular value creation system exhibit. The developed interdependency matrix aims to ensure that decision-makers in value creation systems are increasingly able to make decisions that promote a circular value creation in future. However, therefore it is insufficient to consider only individual influence factors or measures without their correlations. The approach serves to take a holistic view of a circular value creation system and is intended to help accelerate the transformation towards a circular economy.