Browsing by Author "Hytti, Onni"

The depletion of natural resources, and the continuous increase in waste volumes, and consumption have increased environmental concerns strongly in recent years. To solve these environmental challenges, the interest in circular economy and resource efficiency in companies' business operations has increased, and the EU has also set targets to accelerate the circular economy. One of the first steps in promoting a circular economy is to understand the drivers and barriers associated with circular economy business models. This thesis aims to investigate the barriers and drivers of implementing five key circular economy business models. The business models studied are 1) resource recovery, 2) sharing platforms, 3) product as a service, 4) product life extension, and 5) Circular supply, which refers to circulating raw materials and resources. The thesis was carried out by interviewing five different Finnish companies from different industries whose business operations corresponded to the studied business models. The case companies have already implemented circular economy business models and can be assumed to have a good understanding of the drivers and barriers. With the help of case studies, the study aims to identify the key barriers and drivers that touch each business model and to identify differences between business models in terms of barriers and drivers. The study provides up-to-date perspectives on circular economy business, business models, and impacts on the development of sustainable business. Based on the results, circular economy related barriers that affect almost every business model can be seen as regulatory uncertainty, high investment costs, and product development more specifically, the development of new materials and products. Drivers shared by business models were related to increasing market demand for sustainability, regulation, innovation, stakeholder pressure, and organizational culture towards sustainability. The identified barriers and drivers also varied depending on whether the company was either manufacturer-oriented or technology-driven. Manufacture-oriented companies faced barriers related to market competition, material development, and the supply chain, while technology driven companies faced barriers related to user acquisition and financing. The drivers, on the other hand, were related to low carbon footprint in manufacturing-oriented companies and technological development in technology-driven companies. The results show that regulation will play a key role in the future tackling the current circular economy related barriers in business models. The regulation must be as predictable as possible, securing long-term investments and product development. It's highly important that legislation encourages sustainable practices by offering financial incentives to companies and promoting cooperation and innovation.