34 2 Theoretical Foundations
hampering the implementation of circular economy development, 64.29 percent
stated “lack of public awareness” (Xue et al. 2010, p. 1300).
To summarize, although China is not the only country working on large-scaleimplementation of circular economy the Chinese case does provide a unique in-
sight into the development of such an economy. In China the circular economy
is being implemented via government policy and is therefore a top-down process
with the defined purpose of constructing a harmonious society. Despite huge
government support for circular economy in China the involvement of society is
a missing element. This means that there is no external pressure on organizations
and institutions. What organizations usually care about the most is the needs of
their customers. Since in China there is a lack of awareness in society about circular
economy this driver is missing. In contrast, the pursuit of circular economy in the
West is lead primarily by organizations with limited support from the government
and is therefore a bottom up process.
2.3.7 Conceptual Framework for this Thesis
The research questions in this thesis aim to close an empirical gap by investigating
how circular economy is implemented, what impacts the commitment to circular
economy implementation has on organizations and the challenges organizations
are confronted with. Regarding the first question on how circular economy is im-
plemented, the first step is to develop a framework categorizing potential modes
of implementation. This framework shall be used later in the case study to analyze
circular economy approaches in a structured and consistent way. This is necessary
because the concept of circular economy itself is not very specific about which
business model or implementation mode is the best or even possible to execute.
It seems that this concept is designed to provoke and stimulate organizations to
rethink their current mode of operation.
In order to be able to develop a framework it is important to keep in mind theprinciples of the circular economy concept. For organizations these principles
imply that innovations are an essential part of the circular economy concept and
a mandatory requirement for its implementation. Therefore, as first step in the
development of the framework the various types of innovation are elaborated and
its relevance for the implementation of circular economy evaluated.