How circular business models can increase the use of 3R’s - a shift towards circular economy : Case study in Swedish stone material industry

Abstract: Circular economy (CE) is today gaining a lot of attention, which means to improve resource efficiency through reusing, recycling, and reducing (3R). Increased CE is one step towards improved sustainable development. The aim in this study is to explain how circular economy can pursue sustainable development, by business model innovation. A qualitative study including a market analysis has been performed with 28 semi structured interviews. The context studied was the Swedish stone material industry (SSMI) through NCC and its division Industry, as case company. The participants were employees selected from the case company, competitors, customers, ordering parties, and independent actors.    The study highlights both barriers and opportunities for improving 3R’s on the SSMI. Strict regulations are seen as a strong obstacle whereas reduced climate impact is a great possibility. To contribute successfully to circular economy, a shift towards circular business models (CBM) is needed. Such strategical transformation can be accomplished through business model innovation, which this study shows difficult. A CBM is presented to the case company with for instance customer co-creation and developing new partnerships included. Shaping take-back services are also recommended to be implemented in the CBM. A conclusion is that business models and strategy interrelate, and both concepts are affected by regulations. This imply both positive and negative consequences of the market development, concerning circular economy. Lastly, a conclusion is that the triple bottom line mindset must be improved in the industry to pursue sustainable development.