The impact of Blockchain Technology on the Transformation of the Swedish Furniture Industry towards Circular Economy

Abstract: Circular Economy has gained a lot of interest by academia as well as companies and policymakers. Sustainability goals of the European Union has mainly caused this acceleration. However, research argued that the true impact and scale of CE will only be realized when companies deploy Circular Business Models (CBMs) and Fourth Industrial Revolution technologies in a holistic manner to capture new growth opportunities while also strengthening their core business. Especially digital technologies are seen as one of the key enablers for that transition and have become a central topic within the CE research agenda. This research looked at the potential role Blockchain technology can play in the transition towards Circular Economy of the Swedish Furniture Industry based on the identified challenges it currently faces. Based on the combination of literature - and empirical research, there can be concluded that the role of Blockchain technology in the transformation towards CE in the Swedish Furniture Industry is less significant than first anticipated. Based on the empirical findings, there can be concluded that the key driver of Blockchain technology is an environment where there is a systemic lack of trust related to transactions and data between different parties. In such circumstances, Blockchain technology does imply significantly added value due to its inherent features of decentralization, irreversibility, and transparency without the need for intermediary third parties. Circular economy can be seen as an ecosystem that consist of a complex network with different actors that all need certain information to effectively participate. Based on this research, the prominent implication for Blockchain technology in the Swedish Furniture Industry has been found in the current discussed European Union Product Passport in combination with the chemical regulation. Blockchain technology could play a prominent role in the aftermarket by enabling trust, transparency, and irreversibility. In this way all actors in the Circular Economy can use and contribute to the data in a uniform manner.