Running around in Circles? Uncovering Barriers in Scaling Circular Business Models

Unlike traditional business models, circular business models enable firms and their partners to improve resource efficiency and extend the lifespan of products for environmental, social, and economic benefits. But how do companies actually develop and scale these models, and what barriers they may face on the way?

The study, focusing on the Swedish manufacturing industry, offers a process framework to help companies understand and overcome the barriers to scaling circular business models. The study highlights three main findings.

First, companies face specific barriers in creating, delivering, and capturing value. Each of these areas has its own unique set of problems. Second, many of these barriers are linked to complex problems that are hard to break down in finding solutions to their underpinned barriers. Third, the study finds that most barriers prevent companies from scaling up their circular business models, rather than starting their development in the first place. Understanding and overcoming these barriers will be essential for the successful scale-up of circular business models.

The paper was published in Business Strategy & the Environment by SusTec Senior Researcher Dr. Jenni Kaipainen and her colleagues at Luleå University of Technology. For more details, you can find the full study Download here.