Barriers and coping strategies when implementing circular business models — A multiple case study of Taiwanese companies

Abstract

The circular economy has gained momentum in the academic discourse for five years. However, there are merely a few empirical and cross-industry studies on how circular business models are implemented in the Asia context, particularly in Taiwan. Furthermore, most studies focused on the successful implementation of circular business models while ignoring how the companies conquer the internal and external barriers. This research fills the gap by studying the barriers that five Taiwanese companies encountered when implementing or adopting circular business models. Additionally, one research institute in the textile industry was also interviewed to provide insights into what barriers may surface for textile companies. Lastly, the coping strategies that these five companies adopt are presented.

This research uses multiple case studies and applies a purposing sampling strategy to pinpoint the barriers that emerge in companies. Additionally, this research applies thematic analysis to transcribe and group the internal and external barriers that companies encountered. The findings were analyzed in comparison with the barriers previously identified by scholars.

This research discovers that barriers do not vary between the two types of circular business models (CBMs) that interviewed companies adopted. Barriers mostly emerge under the supply chain category because of lacking shared values, low transparency of information and data, and limited spaces for dialogues leading to an incomplete supply chain for CE. Additionally, the barriers interlink with each other, such as lacking financial incentives and lagged regulatory reactions. Coping strategies to tackle barriers were mostly related to building resiliency through diversifying business and collaborating with industry networks and governments. Overall, implications for companies include collaborating with governments through dialogues or consultations and seeking supports from other stakeholders such as research institute or academic institutions for innovations.

Future research can focus on the following areas. Firstly, enlarging the sample collections and industry types and consider other factors such as companies’ sizes. Secondly, expanding the research on more industries. Thirdly, assessing the effectiveness of the coping strategies in association with specific barriers. Fourthly, conducting an analysis of the extent of barriers interlinking with each other. And lastly, exploring service-oriented CBMs to understand the similarities and differences of barriers as these types of CBMs had no presence in this research.