Closing Loops and Making Sense : An exploratory case study of how employees in a global company make sense of a circular economy

Abstract: Background: According to Webster et al. (2013, p. 4) “the idea of the circular economy is capturing the attention of businesses, academics and the next generation of entrepreneurs as a framework for re-designing the economy”. This can be traced back to growing evidence of environmental risks like ozone depletion, climate change, threats to biodiversity and changes in the nitrogen cycle (Geissdoerfer et al., 2017). Although the European economy still relies on a linear economic model, operating on a take-make-dispose basis (Rossé et al., 2016), circular business model have recently experienced a rapid growth and are perceived increasingly attractive by businesses (Ellen MacArthur Foundation, 2017a). Research Question: How do individuals in a multi-national organization make sense of circular economy and their goal of transforming to a circular business? Purpose: Exploring how individuals in an organization make sense of the circular economy concept when pursuing the goal to transform to a circular business by 2030. Method: The research is an exploratory case study with empirical data collected through semi- structured interviews at the case company IKEA Conclusion: By establishing the circularity goal, the organization changes the ambiguity of circular economy to uncertainty for employees that enact it. The individuals are making sense of the circular economy concept triggered by uncertainty due to the missing practical approach defined in the strategy. There is no collective agreement if circular economy is mainly business- driven or sustainability-driven, but they establish collective sense on engaging in many local solutions of circular economy instead of choosing one global approach, representative for the concept of a circular economy. Conclusion: By establishing the circularity goal, the organization changes the ambiguity of circular economy to uncertainty for employees that enact it. The individuals are making sense of the circular economy concept triggered by uncertainty due to the missing practical approach defined in the strategy. There is no collective agreement if circular economy is mainly business- driven or sustainability-driven, but they establish collective sense on engaging in many local solutions of circular economy instead of choosing one global approach, representative for the concept of a circular economy.