Circular economy has gained significant attention in the past decade as a potential solution to address sustainability challenges. Implementing circular business model in the core business operation of a company is referred as circular business model innovation (CBMI). It contains a set of dynamic change processes including visioning, sensing, seizing, and transforming. Among all these phases, transforming phase has been in lack of research. This study examines transforming phase of CBMI in the multinational company IKEA. It adopts the business ecosystem perspective to investigate the specific actions and actors involved in the transform- ing phase of CBMI. The paper employs qualitative research with an in-depth case study method with semi-structured interviews. The aim of this research paper is to contribute to theoretical advancements by enhancing our understanding of the transformative phase of CBMI. The findings offer insights and implications about the opportunities and challenges faced by multinational companies during the CBMI process.

Over the last years, environmental concerns have grown regarding the pressure manufacturing activities exerts on natural resources. Many materials have been classified by the EU as scarce, rare earth elements found in magnets are amongst critical materials with high supply risk. Furthermore, this has led to increasing material costs and disruptions in the supply chain. Efforts towards increased electrification are reliant on these and other critical materials. Electric machines that power a battery electric vehicle (BEV), are vulnerable to this price variations as magnets represent high material costs. Circular business strategies present the opportunity to decouple value generation from resource use, providing a cost effective way to support net zero targets. Legislation is toughening up, increasing original equipment manufacturer (OEM) extended responsibility, which might lead to mandatory product returns that require end of life (EOL) treatment. Therefore, OEMs need a systematic way to explore EOL design strategy combinations, that can quantify the impact of a circular business model, which considers product returns and remanufacturing activities. Thus preparing to meet greener demands from customers, government and society in general. This thesis work focuses on quantifying economic and environmental factors, of circular design strategies, through simulations tools to support EOL decisions at component level. Scania’s electric machine (EM) has been used as a case study for the simulation, collecting expert input from 6 different groups. Anylogic Professional software (8.8.1 version) has been used to set up a model that represents a closed loop supply chain. An optimization experiment has been conducted, to find the cost minimum design strategies for the EM’s parts. It shows redesigning part 1 and one entire module for easy reuse minimizes overall costs. This generates economic and environmental benefits in the form of savings compared to business as usual (linear) scenario; cost savings amount to 17.7%, CO2 equivalent emissions savings to 38.7% (cradle-to-gate), and virgin material saved (from extraction) to 14.7%. The results of this work are intended to provide data supporting circular initiatives, for Scania and potentially other OEMs, for better decision making.

Kaffesump ingår i kategorin matavfall- och svinn och varje år konsumerar hela Sverige cirka 79,7 tusen ton kaffe per år. Det innebär att enormt mycket kaffesump slängs och betraktas som avfall. Kaffesumpens innehåll är en resurs och kan utnyttjas inom flera olika områden. Kaffebranschen behöver ställa om från en linjär- till en cirkulär modell.  Syftet med denna studie är att, ur ett cirkulärt designperspektiv, undersöka huruvida avfall i form av kaffesump kan vara en resurs i en hållbar utveckling på svensk marknad.  Den här studien avser bidra till ökad kunskap om kaffesump som resurs, samt skapa en efterfrågan på produkter av kaffesump av konsumenter såväl som producenter. Detta för att bidra till en hållbar konsumtion i form av kunskap om- och utförande av en cirkulär kaffebransch med koppling till de globala målen 12 Hållbar konsumtion och produktion och 13 Bekämpa klimatförändringarna.  Huvudresultatet i denna studie är att kaffesump har stor potential för att vara en del i cirkulära processer, som bidrar till hållbarhet på den svenska marknaden.

The vision of a circular economy (CE) promises both profitability and eco-sustainability to industries, and can, from a material and energy resource flow perspective, be operationalized by combining three business and design strategies: closing loops; narrowing and slowing down resource flows by material recycling, improving resource efficiency; and by extending product life by reuse, upgrades and remanufacturing. These three strategies are straightforward ways for industries to radically reduce their use of virgin resources. From a product design perspective, it is doable. However, from a business perspective, it is no less than a revolution that is asked for, as most Original Equipment Manufacturers (OEMs) have, over time, designed their organizations for capturing value from selling goods in linear, flow-based business models. This thesis aims to contribute to the discourse about CE by exploring practical routes for operationalizing circular product design in a “stock-based” CBM. The approach is three-fold. Firstly, the role of design as a solution provider for existing business models is explored and illustrated by case studies and interviews from the automotive industry. Secondly, challenges and possibilities for manufacturing firms to embrace all three strategies for circularity are explored. Thirdly, implications for designing products suitable to stock-based CBMs are discussed. In spite of the vast interest in business model innovation, a circular economy, and how to design for a circular economy, there are still many practical, real-life barriers preventing adoption. This is especially true for designing products that combine all three of the circular strategies, and with regard to the risk of premature obsolescence of products owned by an OEM in a stock-based business model. Nevertheless, if products are designed to adapt to future needs and wants, business risks could be reduced. The main findings are that CE practices already have been implemented in some respects in the automotive industry, but those practices result in very low resource productivity. Substantial economic and material values are being lost due to the dominant business and design logic of keeping up resource flows into products sold. The primary challenge for incumbent OEMs is to manage, in parallel, both a process for circular business model innovation and a design process for future adaptable products. / <p>This licentiate studies have been financed by the Swedish EnergyAgency. The Appended Paper I is a part of the research project:Future-adaptivity for more energy-efficient vehicles, a collaborationbetween RISE VIKTORIA and Academy of Design &amp; Crafts,University of Gothenburg.</p>

I Sverige är 93% av alla existerande företag i mikrostorlek. Trots det finns det väldigt lite forskning på hur de ska gå tillväga för att implementera en cirkulär affärsmodell. Syftet med studien är att undersöka vilka förutsättningarna ett modeföretag i mikrostorlek kan ha för att implementera cirkulära affärsmodeller.   Dagens ekonomiska system bygger på linjära affärsmodeller. Det betyder att människor köper, använder och sedan slänger produkter som fortfarande har ett potentiellt ekonomiskt värde. Cirkulära affärsmodeller utgör ett alternativ till dagens ekonomiska system. Det bygger på att produkter efter brukningsperiod återanvänds eller återvinns för att bibehålla det ekonomiska värdet och sparar på resurser som är skadliga för miljö och människor.   I teorin presenteras tidigare forskning som gjorts kring cirkulär ekonomi, innovativa affärsmodeller och ramverk samt mikroföretagets roll i en cirkulär ekonomi. Ostrukturerade intervjuer med verksamma inom återvinning, återanvändning och ekodesign samt semistrukturerade intervjuer med produktionschef och produktutvecklare på fallföretaget har utförts. Detta har givit en bred och djup kunskap kring vilka förutsättningar som finns och vilka tillvägagångssätt mikroföretag kan tillämpa för att fortsätta resan mot en mer cirkulär affärsmodell. Resultatet av studien visar att fallföretaget idag på många sätt agerar cirkulärt, men att kompletterande aktiviteter och tekniker gällande återtagningssystem och externa införningfaktorer saknas. / In Sweden 93% of the existing companies are microbusinesses. Despite this, there is a lack of research on how they can implement circular business models. The purpose of this study is to investigate what prerequisites a micro business within the fashion industry can have to implement a circular business model.   Today’s economic system is supported by linear business models. This means that people buy, use and dispose of goods that may have a potential continuous economic value. Circular business models offer an alternative to the current economic system. They are based on reuse and recycling to upkeep economic value and cut down on byproducts that are harmful to the environment and people.   Earlier research regarding circular economy, innovative business models and framework are presented in this study. Unstructured interviews with people working actively within fields such as reuse, recycle and eco-design have been held, as well as semi-structured interviews with the production manager and product developer at the case business of this study. The interviews have provided a wide knowledge around what prerequisites and course of action a micro business within the fashion industry can apply, to continue working against a more circular business model. The result of the study show that the micro business can operate in a circular manner, but require complementing activities and technologies regarding take back systems and external adoption factors.

The business environment is constantly being challenged with growing complexity and rapid changes, usually unforeseeable, as it could be observed during the last decades. One topic growing intensively in importance is environmentally sustainable business practices, which are often driven by societal expectations and new regulations; and which, under the enormous pressure of external stakeholders, cannot be avoided by companies anymore. Circular Economy, a relatively new concept, is becoming more popular, offering businesses not only a competitive advantage, but also the possibility to operate profitably, while still contributing to a sustainable development. This thesis provides insights on how MNCs with linear business models can take advantage of dynamic capabilities in order to incorporate circular business strategies. Current literature lacks research about the connection of how dynamic capabilities can support companies with the implementation of Circular Economy principles. Startups often implement sustainable strategies from inception, but: how can traditional MNCs of complex character successfully innovate their business models and strategies, without major disruption and losing their profitability? We argue that not only these young and born circular companies will lead the markets in the future, but also existing MNCs can successfully develop and stay competitive. This study wants also to highlight what resources and capabilities both types of companies state as key for successful circular business strategies, and how they are handled and embedded in the organizational structure by managers. A qualitative case study approach provided the detailed necessary information (from different industries and degree of circularity) to address the question. The findings widen the research of business model innovation towards circular business strategies and show a clear picture of which dynamic capabilities are of importance and how they can be successfully incorporated. We conclude by indicating that the concepts of learning, knowledge, relationships, leadership and management style were perceived as the most decisive within the organizations; with remaining external barriers as challenging.

Purpose – This study aims to explore and provide empirical insights into AI-driven circular business model innovation (CBMI) in industrial symbiosis. In doing so, it addresses the knowledge gap regarding how industrial companies can use AI to amplify circular business models and facilitate AI-driven circular innovation. Method – A thematic analysis was used in the study to answer the research questions. It was based on 32 interviews with informants from five companies conducting an AI innovation initiative and experts, as well as two site visits, four project meetings and 61 company documents.  Findings – The analysis showed how AI can amplify an industrial symbiosis and uncovered three principles and symbiotic facilitators for AI-driven CBMI in an industrial symbiosis. The principles and symbiotic facilitators were combined in a coevolutionary alignment framework for AI-driven CBMI in industrial symbioses. Theoretical contributions – This study contributes to prior literature by (1) depicting how AI changes business models and amplifies an industrial symbiosis, where past research only had conceptualised it; (2) identifying principles that describe how AI-driven CBMI should be approached; (3) uncovering three symbiotic facilitators that create conditions for successful AI-driven CBMI; and (4) conceptualising a coevolutionary framework based on the principles and symbiotic facilitators for aligning the innovation efforts between partners in industrial symbioses. Practical contributions – Managers in industrial symbioses can use this study to comprehend how AI can improve resource flows and the significance of efficient data sharing in collaborative AI-driven innovation. Moreover, it provides a framework to assist companies in aligning innovation initiatives among partners in order to succeed with AI-driven CBMI. Limitations of the study – The study focused on five companies involved in an AI innovation initiative in one specific industrial symbiosis. As a result, the findings’ generalisability may be limited, and validating these findings in other industrial symbioses and different industrial ecosystems or partnerships would thus be interesting for future research. / Syfte – Denna studie syftar till att utforska och ge empiriska insikter i AI-driven cirkulär affärsmodellinnovation (CBMI) i industriell symbios. Genom detta undersöks kunskapsbristen om hur industriella företag kan använda AI för att förbättra cirkulära affärsmodeller och underlätta AI-driven cirkulär innovation. Metod – En tematisk analys användes i studien för att besvara forskningsfrågorna. Den baserades på 32 intervjuer med informanter från fem företag som genomförde ett AI-innovationsinitiativ och experter, samt två platsbesök, fyra projektmöten och 61 sekundära källor. Resultat – Analysen visade hur AI kan förbättra en industriell symbios och hittade tre principer och symbiotiska facilitatorer för AI-driven CBMI i en industriell symbios. Principerna och symbiotiska facilitatorerna kombinerades i ett samevolutionärt ramverk för att skapa målöverenstämmelse och underlätta AI-driven CBMI i industriella symbioser. Teoretiskt bidrag – Denna studie bidrar till tidigare litteratur genom att (1) beskriva hur AI förändrar affärsmodeller och förbättrar en industriell symbios, där tidigare forskning bara hade konceptualiserat det; (2) identifiera principer som beskriver hur AI-driven CBMI bör genomföras, (3)  identifiera tre nyckel symbiotiska facilitatorer som skapar förutsättningar för framgångsrik AI-driven CBMI; och (4) konceptualisera ett samevolutionärt ramverk baserad på principerna och symbiotiska facilitatorer som kan användas för att underlätta innovation som partners gör tillsammans i industriella symbioser. Praktiskt bidrag - Ledare i industriella symbioser kan använda denna studie för att förstå hur AI kan förbättra resursflöden och vilken betydelse effektiv datadelning har i kollaborativ AI-driven innovation. Dessutom ger det ett ramverk för att hjälpa företag att innovera tillsammans för att lyckas med AI-driven CBMI. Studiens begränsningar – Studien fokuserade på fem företag involverade i ett AI-innovationsinitiativ i en specifik industriell symbios. På grund av detta kan resultatens generaliserbarhet vara begränsad, och validering av dessa resultat i andra industriella symbioser och olika industriella ekosystem eller partnerskap skulle därför vara intressant.

The fashion industry is ranked as the fourth most environmentally harmful industries in the world. A main cause being the overruling destructive model of take-make-dispose that maintains our reliance on virgin materials. Academia and European Union policymakers believe the Circular Economy is a more sustainable alternative to this linear model. The transition to a Circular Economy requires collaboration between organisations across the value chain to close the loop. These organisations come together to share their capabilities forming circular ecosystems. However, key authors in the field warn that collaboration is difficult and should only be entered with an intention to actively manage it. In this study we therefore set out to understand collaboration in these ecosystems of organisations in the fashion and textiles industry. To fulfil the aim of our research, we conducted a qualitative study following an interpretative approach, focusing in on a pioneering case study from the industry. The New Cotton Project is a 3-year EU-funded project forming a circular model for commercial garment production. Using the Theory of Collaborative Advantage as a theoretical lens, we came to understand that collaboration in these ecosystems in the fashion and textiles industry is complex and challenging, yet it is optimistic and hopeful as partners try to overcome issues stemming from the pre-existing linear model. We also argue that collaboration that leads to collaborative advantage in these ecosystems is not a result of serendipity but of innovators, organisations and policymakers coming together to transition the industry.

Dagens ekonomiska system bygger på en linjär modell där varor produceras, används och sedan slängs. Den linjära modellen tillsammans med en ökad befolkningsmängd som överkonsumerar planetens begränsade resurser, har bidragit till att mängden avfall och miljöproblem ständigt ökar. En cirkulär ekonomi presenteras i forskningen som ett avgörande steg mot ett mer hållbart samhälle. I en cirkulär ekonomi tillvaratas material och resurser i förlängda livscykler, vilket kan liknas vid ett slutet kretslopp. Uppsatsen är en kvalitativ studie med syfte att skapa en förståelse för vad sex företag i detaljhandeln har för uppfattning kring cirkulära affärsmodeller samt redogöra för hur väl anpassade deras affärsmodeller är till en cirkulär ekonomi. Studien ämnar även undersöka på vilket sätt design kan bidra till en mer cirkulär affärsmodell. Datainsamlingen har genomförts via semistrukturerade intervjuer med åtta respondenter, varav sex stycken var med grundare eller medgrundare av företag i detaljhandeln som arbetar med cirkulära arbetsmetoder. Empirin har analyserats utifrån den teoretiska referensramen, som bygger på tidigare forskning kring cirkulär ekonomi, cirkulära affärsmodeller, designtänkande och ekodesign. Studien visar att kunskapen kring begreppet cirkulär ekonomi är relativt låg, att de studerade företagen har delvis cirkulära affärsmodeller, men att det finns många utvecklingsområden för att uppnå ett helt cirkulärt flöde. Studiens resultat pekar på att design kan bidra med verktyg för att utforma mer hållbara strategier och lösningar på de hinder som finns i implementeringsprocessen av en cirkulär affärsmodell.

Background – Circular business models, CBMs, are an emerging topic of interest within the textile and clothing, T&amp;C, sector. They provide a new framework to tackle current environmental and social issues by redesigning a linear model previously base on the assumption of endless availability of fossil fuels and other natural resources. CBMs change these underlying assumptions in order to be regenerative and waste-less. A company´s knowledge has to be aligned with the overarching paradigm and assumptions that guide the business model, hence, the process of creating new knowledge to sustain this shift, appears to be essential. Knowledge creation enables businesses to continuously adapt to new contexts and prevent them from becoming obsolete. As such, it constitutes an enabler to develop the internal capabilities of companies to innovate. Purpose - This study is focused on understanding how knowledge is created within T&amp;C companies in the shift from a linear business model to a circular one. It is of interest for the study to uncover the ways in which knowledge about circularity is created and translated into business practices. Further, it also expects to explore the companies’ main internal barriers identified in this process. Methodology – The research was conducted through a single case study with an abductive approach, building on the theoretical perspective of Nonaka and Takeuchi’s knowledge creation theory and the SECI model for knowledge conversion. Semi-structured interviews with Dutch denim company employees were the basis for collecting primary data, supplemented by secondary data gathered through archival review. The data was analysed qualitatively through thematic content analysis. Findings – Results show that knowledge creation is enabled by personal motivation, company focus on circularity and long-lasting business relationships. Several knowledge creation practices related to the dimensions of socialisation, externalisation, combination and internalisation are identified, while different levels of process and knowledge complexity can be observed within each dimension. Internal barriers hindering circular knowledge creation relate to the complexity of circular concepts, individuals´ time, personal interest and previous knowledge on the topic. System-oriented internal barriers relate to finance, scale and company focus. Further, the role of regulations, as an external system-oriented barrier, is considered of relevance for this research. Practical implications &amp; Research limitations – This thesis creates new insights into a relatively unexplored area, knowledge creation processes in the context of CBMs. Further the specific delimitation to the denim segment within the T&amp;C sector, shares experience and guidance with practical implications for knowledge management, from companies within a segment which has a high degree of product and process innovation compared to other T&amp;C segments.