Exploratory Study on Circular Economy Approaches A Comparative Analysis of Theory and Practice

(Rick Simeone) #1

98 5 Result of Analysis and Interpretations


This is because the circular economy approaches as described in the framework


in chapter 2.3.7 offer many opportunities for the transformation of the business


towards circular economy. Data shows that three aspects can differentiate circular


economy implementation approaches: type, amount, and maturity level.


According to the framework underlying this thesis organizations can chose

between seven different types of circular economy approaches to implement the


circular economy concept. This offers a variety of possibilities to the organization


and leads to a great range of different implementation modes. Results show that


organizations that have chosen the same approach differ highly in the concrete


implementation, even within the same industry. More differences exist even across


industries. The next section illustrates this fact with an example of the often-imple-


mented circular economy approach ‘circular supplies on product level’.


In case Alpha, the organization established an infrastructure to take back their

circulatable products at the end of the lifecycle and recycle, refurbish, and reuse


the material. Therefore, customers are encouraged to return their worn out clothes


to collection boxes in the company-own stores. In cooperation with recyclers and


suppliers the organization is able to maintain this closed production circle. The


closed-loop production of case Zeta is similar to this one. In contrast, case Beta,


which is in the same industry, didn’t establish a recycling infrastructure. Instead


the organization manufactures biodegradable products, which can be directly


composted by the customer. Hence, no effort for the establishment and maintenance


of the recycling infrastructure is necessary. On the other side, the organization is


limited to material that belongs to the biological cycle and is biodegradable. The


cases Gamma and Epsilon have also chosen the circular economy approach circular


supplies but are both still unaware how to handle the end of the product lifecycle.


While case Gamma is considering the involvement of third parties to remove and


recycle the parquet, case Epsilon is thinking of incentivizing the customers in a


way to ensure their motivation to return the product at the end of the lifecycle.


The section above illustrates that the same approach can be implemented in many


different ways according to the organizational and product characteristics. This


often leads to different experiences, challenges, and impacts derived from the


circular economy concept.


But not only can the type of circular economy approach and its concrete imple-

mentation vary, but also the amount of circular economy approaches chosen by one


organization is a distinguishing characteristic. The implementation of the circular


economy concept is not limited to one approach. It is actually quite the opposite,


as organizations are able to implement multiple circular economy approaches.


There are cases in this study that have implemented up to five different circular


economy approaches, such as case Alpha. But the majority of cases focus on one

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