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

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plementations. These aspects haven’t –according to the author’s knowledge- not


yet been pointed out in other studies.


Third, this research project contributes to the literature on challenges of cir-

cular economy implementation. Challenges which have already been repeatedly


described by a number of scholars on Chinese circular economy are: lack of public


awareness, lack of financial support/weak economic incentives, shortage of advanced


technology, lack of reliable information, poor leadership and management, poor


enforcement ability of legislation, and lack of standard system for performance


assessment (Naustdalslid 2014; Liu and Bai 2014; Su et al. 2013; Xue et al. 2010;


Geng et al. 2009; Hong-Chun 2006). Since data has been exclusively collected in


organizations from Western countries, the first contribution is an additional per-


spective in challenges the companies in USA, Canada and Europe are facing. The


comparison shows both analogies and contrasts, which are elaborated on in the


following paragraphs. Common challenges, such as need for augmented awareness


of the concept, increased entrepreneurial efforts, and technological limitation


confirm findings from previous studies. Results show that there is also a list of


challenges that have solely been mentioned in Chinese studies but have not been


identified in the data of this research. When looking at the detailed descriptions of


these topics it becomes clear that all of these challenges go back to the expectation


of highly involved governments (Su et al. 2013). Since these impediments have not


been found in the data of this research project, the assumption suggests that there


is a difference in the role of governments in China and the role of those in Western


countries. Moreover, there are also hindrances that have only been identified in


this research project. These challenges are closely related to the fact that cases in


this study are mainly in an early stage of their transition to a circular economy.


In order to stay competitive, organizations feel the pressure to produce products


comparable to conventional versions in design, quality, and price. In contrast, for


Chinese organizations market pressure is not the primary factor affecting decisions


and behavior (Liu and Bai 2014) which might be a starting point to explain this


difference.


6.3 Implications for Management


6.3 Implications for Management


Besides the more theoretical implications for research described in the previous


chapter and extension of existing literature, several practical findings for managers


can be derived from this study. The results illustrate different approaches towards

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