22 2 Theoretical Foundations
2.3.3 Circular Economy as Economic Strategy –
Reasons to engage in Circular Economy
One key question of this research project asks which impact the implementation of
circular economy has on organizations. To answer this question, an extensive review
of the existing literature has been conducted before starting the case study of this
research project. The results of which are presented in the course of this chapter.
The literature available on circular economy remains limited. Only five academicarticles containing information on the impacts circular economy implementation has
on organizations have been identified. In addition to these academic publications,
three non-academic reports, published by the Ellen MacArthur Foundation and
the consulting companies Accenture and Kienbaum Management Consulting were
found and included in this review. Table 1 provides an overview of the literature
identified including information on the respective benefits of circular economy.
Ta b l e 1 Literature review of circular economy benefits
Author Methodology Impacts
Academic literature on circular economy benefits
Su et al. 2013 Literature Review • Improves competitiveness of Chinese
enterprises
Geng et al. 2012 Conceptual • More efficient use of materials and energy
• Increased revenues from sale of “waste”
• Cost savings from lower insurance costs
• Reduced environmental penalties
• Increased competitive advantage
Preston 2012 Literature Review/
Conceptual• Closer and more direct relationship
with consumer through collaborative
consumption
Park et al. 2010 Empirical Study • Cost reduction through usage of returned
and recycled material
• Cost reduction for waste management
through centralized waste management
in industrial parks
• Revenue generation through reselling of
used products
• Positive corporate image and legitimacy
to do business
Sinkin et al. 2008 –
study on eco-
efficiencyEmpirical Study • Reduced costs through less waste
inefficiencies and pollution
• Increased profits
• Increased firm value