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

(Rick Simeone) #1

5.2 Impacts of Circular Economy Implementation on Organizations 103


103

The within-case analysis already revealed that implementation of circular econo-


my can have both positive as well as negative impacts for the organizations. These


can be separated into monetary impacts and other impacts which are not primary


monetary as displayed in the following sections. Figure 5 provides an overview of


the identified results from the empirical data of this study.


The next chapter is structured as following: first, empirical findings on monetary

as well as non-monetary impacts are outlined, and later, a detailed comparison


depicts the differences between findings of this study and in existing literature as


well as an attempt to explain the differences.


5.2.1 Monetary Aspects of Circular Economy


Since more and more organizations engage in circular economy practices, it seems


obvious that positive impacts outweigh the negative ones. However, the data reveals


that the financial aspect of such a commitment is neither clearly negative nor positive.


Therefore, the financial aspect is elaborated in this chapter in order to reveal both


sides of the investment. Table 17 provides an overview of the monetary aspects and


their impact on businesses, which will be described in more detail in the following.


Table 17 List of monetary sub-categories and their effect on businesses


# Monetary Impact Monetary Sub-Category Effect
1 Costs Circulatable Material
Costs

negative/positive

2 Costs R&D Costs negative
3 Revenue Acquisition of new Cus-
tomers

positive

4 Revenue Sale of Refurbished
Products

positive

5.2.1.1 Monetary Impact: Costs


5.2.1.1.1 Sub-Category 1: Circulatable Material Costs


The first monetary effect is the augmented costs for recycled material. This is the


aspect with the most coded statements from the interviews which might give an


indication of the importance for the organizations. The higher prices for recycled


materials play an important role, especially in cases from the textile industry, but

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