Exploring how Barriers to Circular Business Models can be Overcome on a Macro and Micro Level : -a Swedish Textile Industry Perspective

University essay from Jönköping University/IHH, Företagsekonomi; Jönköping University/IHH, Företagsekonomi; Jönköping University/IHH, Företagsekonomi

Abstract: Background: The resource demanding textile industry has long been linked to the linear economy, an economy contributing to negative effects on the environment. However, there is an alternative to the linear economy, namely the circular economy. In a circular economy, a closed-loop design is promoted in order to eliminate the negative effects of the linear economy. However, in the context of the Swedish textile industry, there is a lack of case studies on the topic and especially regarding experienced barriers to a circular business model as well as drivers and enablers needed to overcome these barriers. Purpose: The purpose of this research is to support the development of the Sustainable Development Goal 12: sustainable production and consumption. This is done through exploring the experienced barriers to circular business models among companies in the Swedish textile industry at a macro and micro level, but also drivers and enablers in order to overcome these barriers. Method: This research follows an interpretivist view and an inductive approach based on a cross-case analysis of five companies. The research is qualitative and semi-structured interviews were conducted with open questions. The identified themes were analysed and interpreted with a careful awareness of the trustworthiness and ethical considerations. Conclusion: The result showed five barriers which appeared to be the most common across the companies. Namely, technological un-readiness, circularity costs, market unacceptance, financial shortage and knowledge gap. For these barriers, possible solutions in the form of drivers and enablers were identified. According to the findings, the identified drivers and enablers which have the greatest potential of positive impact on the barriers were as follows: knowledge sharing, collaboration, regulatory changes, more research and refocus of efforts

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