Abstract
Integrating circularity in business strategy is difficult to achieve for companies as it requires impactful changes in core business processes. While research has focused on identifying key barriers, little is known about the organizational attributes that can assist businesses in integrating circularity in their strategies. The purpose of this study is to investigate the implications of organizational managers and network interactions for the integration of circularity in business strategy. Through using survey data from 627 SMEs (small- and medium-sized enterprises) in the Netherlands, this study shows that managers who interpret circularity as an opportunity can have a positive direct and indirect effect on the integration of circularity in a company’s strategy. The results furthermore highlight the importance of circular network interactions for the integration of circularity in business strategy. This article contributes to recent calls for more empirical research into the integration of circularity and offers relevant insights for companies aiming to integrate circularity.
Highlights
Researchers are increasingly focusing on the successful integration of circularity in business strategy, which can enable companies to contribute to the sustainable development of our planet (Bocken et al, 2017; Kirchherr et al, 2017; Urbinati et al, 2017)
This study addressed an important research topic in the recent circular economy literature on the integration of circularity in business strategy
While organizational managers are becoming increasingly positive about the circular economy, the integration of circularity in business strategy is still limited
Summary
Researchers are increasingly focusing on the successful integration of circularity in business strategy, which can enable companies to contribute to the sustainable development of our planet (Bocken et al, 2017; Kirchherr et al, 2017; Urbinati et al, 2017). This is likely caused by the barriers companies face in the integration of circularity These include cultural barriers, such as a hesitant company culture, regulatory barriers, including a lacking global consensus, technical barriers, for example, a need for new technologies, and market barriers, such as high upfront investment costs (Kirchherr et al, 2018; Rizos et al, 2016). These barriers may for instance hamper the development of circular products and services, prevent circular products from competing with their linear equivalents and complicate the adoption of recycled materials (Kirchherr et al, 2018)
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