What Motivates Entrepreneurs into Circular Economy Action? Evidence from Japan and Finland

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Volume Title

A1 Alkuperäisartikkeli tieteellisessä aikakauslehdessä

Date

2023-04

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Language

en

Pages

21

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Journal of Business Ethics, Volume 184, issue 1, pp. 71-91

Abstract

This study investigated entrepreneurs’ motivations to implement circular economy (CE) practices and the ways in which their approaches to CE practices differed by their sociocultural context. The research aimed to contrast the contemporary instrumental perspective on CE through an ecologically dominant logic. The empirical analysis focused on Finland and Japan, two countries with distinct sociocultural contexts but similar regulatory environments regarding the CE. The study analysed entrepreneurs’ motivations towards the CE through self-determination theory that makes a distinction between different levels of internalization in motivations. The Finnish entrepreneurs were characterised by more frequent intertwined intrinsic/transcendent motivations and a vocal approach to CE. The Japanese entrepreneurs’ motivations were more varied; some were intrinsically interested in the CE, while some were even unaware of the CE concept despite operating CE businesses. The Japanese entrepreneurs resorted to masking their CE businesses to better relate with the surrounding linear system. The study shows how the individualistic Finnish culture fostered progress on the CE, while the collectivistic Japanese culture emphasised the need for relatedness and caused stagnation in the CE in its society.

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Funding Information: The authors would like to thank the research foundations that have funded this research: The Emil Aaltonen Foundation, The Marcus Wallenberg Foundation, HSE Foundation, Foundation for Economic Education and Tutkijat maailmalle programme. We also express our gratitude to the two anonymous reviewers, as well as our colleagues Katri Kauppi, Arne Kröger, Markku Kuula, Juri Matinheikki, Vikash Sinha and Teemu Valminen, and the Aalto University ISM Logistics seminar participants for offering constructive criticism that has been instrumental in helping us to improve the manuscript. We also greatly thank Professors Kondo Yasushi and Itsubo Norihiro and the Social Innovation Japan community for supporting the research in Japan. Publisher Copyright: © 2022, The Author(s).

Keywords

Circular economy, Motivation, Self-determination theory, Sociocultural context

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Citation

Rovanto, S & Finne, M 2023, ' What Motivates Entrepreneurs into Circular Economy Action? Evidence from Japan and Finland ', Journal of Business Ethics, vol. 184, no. 1, pp. 71-91 . https://doi.org/10.1007/s10551-022-05122-0