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

100 5 Result of Analysis and Interpretations

have significant weaknesses towards the end of the lifecycle. Both cases do not have

a specific concept of handling end of product life which is an integral component to

close the cycle. However, both organizations claim that their first circular products

reach the end of the product lifecycle in approximately ten years. Hence, there is still

time left to resolve the situation and develop a comprehensive approach.

In contrast, cases such as Alpha, Zeta or Delta have completely implemented

their chosen circular economy approaches.

The differences in the maturity level of the approaches as explained above illustrate

that not every organization that claims to have implemented the circular economy

concept has really implemented it. There are major differences in the maturity level

that are only visible with more scrutiny. For the cases with a low maturity level, key

questions are often unanswered and solutions need to be developed to increase the

maturity level. All affected cases are aware of these weaknesses and are working to

find solutions in order to enhance the maturity level.

5.1.2 Motives to engage in Circular Economy

To answer the question of why organizations engage in a circular economy, this study

analyzes the motivations for the investment in a circular economy. The results show

that organizations usually have more than one reason to engage in circular economy.

A comparison of motivations for the investment in a circular economy with

motivations for the investment in sustainability management shows major similar-

ities. Literature on sustainability management analyzed motives for the adoption

of sustainability actions, and they can be grouped into: market success, legitimacy,

internal improvement and ethical considerations (Windolph et al. 2014; Babiak and

Trendafilova 2011; Darnall; Epstein 2008; Graafland 2006; Bansal and Roth K. 2000).

Market success can either describe an increase in revenue, competitiveness,

brand equity, or innovation (Windolph et al. 2014; Brønn and Vidaver-Cohen 2009;

Epstein 2008; Bansal and Roth K. 2000). Today, the market, particularly consumers,

demands the consideration of certain environmental and social factors. Sustainability

management, therefore, can lead to a competitive advantage (Windolph et al. 2014).

Legitimacy for organizations can be defined as “perception or assumption that

the actions of an entity are desirable, proper, or appropriate within some socially

constructed system of norms, values, beliefs and definitions” (Suchman 1995, p. 574).

Translated into daily practice, this means to not only comply with laws but also

environmental and societal regulations.

Internal improvements refer to improving processes in a sustainability-oriented

way and to reducing costs. Furthermore, increasing eco-efficiency or socio-efficiency