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

5.3 Practical Challenges for Realizing Benefits in a Circular Economy 121

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A systems approach requires collaboration on many different levels. Organiza-

tions not only have to cooperate with their competitors, but also across industries.

Further collaboration with governments, NGOs and customers is also necessary

to optimally support the transition towards a circular economy. This collaboration

is time-consuming and therefore many organizations choose not to get involved

in these activities.

Cases Eta and Zeta already collaborate with competitors in an industry group.

The objective of cases Eta and Zeta is to encourage their competitors to engage in a

circular economy. The aim is to jointly develop solutions to change the behavior of

both suppliers and customers. If the cooperation required can be achieved then the

implementation of a circular economy becomes more realistic. It is important to note

that it is extremely challenging for organizations that act globally to engage with

all involved partners. The representative of the organization in case Eta describes

their work in the industry group as follows: “The objective of this industry group

is to connect the industries, to better inform the consumer and to produce products

which are recyclable” (see Appendix: German Quote 77).

The results of this study are similar to those in the literature on sustainability

science. In the academic literature on sustainability science, systems approach

is becoming increasingly important. The objective thereby is to understand the

interrelations between human health, ecology, and economic activity (Barile et al.

2014; Ingwersen et al. 2014; Fiksel et al. 2013).

5.3.3 Increased Entrepreneurial Efforts

The final challenge identified in the data analysis of this study is the increased

entrepreneurial efforts which result from the implementation of circular economy.

This result supports a finding of Geng et al. 2009 which they obtained when they

reviewed the implementation of circular economy in the municipality of Dalian in

China. In their study, the authors conclude that a circular economy can improve

economic and environmental performance in the long term but that activities

undertaken to implement circular economy are costly. They recommend the devel-

opment of financial support mechanisms to support the early stage of the concept

implementation (Geng et al. 2009).

The three sub-categories of increased entrepreneurial efforts identified in this

study are: increased costs for resources, difficult selection and collaboration with

suppliers, and delayed return on investment (please see Figure 6).

The first sub-category, increased costs for resources, has already been mentioned

in chapter 5.2.1.1 and therefore only a brief explanation will be provided. Increased