Tackling the challenges of circular business model innovation in the Finnish construction industry
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School of Business |
Master's thesis
Authors
Date
2024
Department
Major/Subject
Mcode
Degree programme
Strategic Management in a Changing World
Language
en
Pages
92+4
Series
Abstract
The aim of this research is to create further understanding about circular business models, innovating circular business models, and the challenges and enablers related to this process. Construction industry is the biggest consumer of raw materials globally and creates a big portion of the worlds carbon emission. Circular economy is increasing being considered as a route to sustainability by organizations, nations, and global institutions. Our current linear economic model has led to several environmental problems and strains natural resources, but luckily circular economy offers another promising standpoint for understanding and analysing consumption. In a circular economy, materials and products are kept in use as long as they provide value and manufactures take the role of service providers. The transition towards circular economy needs new circular business models, but their adoption is still low, and the process of innovating and implementing new circular business models is still uncertain. Thus, this thesis explores the barriers Finnish construction industry companies face when innovating circular business models, and how these challenges could be overcome. To fulfil this objective, this thesis has conducted a comparative case study between circular companies and “sustainable developing incumbents” operating in the construction industry. Semi-structured interviews were used as the primary sources of empirical materi-als. As the thesis plans to reflect the findings form the case studies to the CBMI barriers that have been already identified in the academic literature, this thesis follows an abductive research approach. The research findings demonstrate many similarities and differences related to CBMI barriers and enablers encountered by the two case clusters, and even between individual companies. Barries and enablers are categorized to four socio-technical levels. The main CBMI barriers encountered by the companies were located at the market and institutional level, but also majority of the enablers were located at the same level. The findings of the study give industry professionals some starting point when they start to ponder the possibility of engaging with CBMI in the industry.Description
Thesis advisor
Moisander, JohannaPälli, Pekka
Keywords
circular economy, circular busines models, construction industry, circular business model innovation