Organizational Readiness for a Circular Business Model

Abstract

In recent years, scholars and companies have increasingly engaged with the concept of the circular economy. Nevertheless, few contributions address under which conditions companies adapt a circular business model. This research takes a culture perspective on this issue. The leading assumption is that culture is a determining factor if and to which extend companies implement a circular business models. The Competing Values Framework is used for analyzing corporate culture and semi-structured interviews with representatives from top-management are used to investigate the role of leaders in supporting a change to a circular business model. Drawing on a sample of three case companies, cultural profiles of companies that have implemented sustainable business models to different extents are presented. In particular, we seek to analyse which cultural and managerial factors support a circular business model. The research contributes to the emerging research on circular economy in various way. First, it emphasizes the role that culture plays in creating an environment supportive for a circular business model. Second, the findings should help companies to predict, based on their organizational culture, whether they have the conditions in place to embark on a journey to a circular business model.