During the last decades, the circular economy has enabled a new kind of business model that is challenging the traditional linear way of doing business. The purpose of this thesis is to investigate how an international social enterprise work towards a circular business model, as well as the challenges and opportunities that comes with operating in an emerging market. Previous research on the subject is limited which leaves a research gap in existing literature. Indonesia is an emerging country that is struggling with a weak recycling infrastructure and   lack of waste management, which has resulted in an ocean plastic pollution problem.   In the theoretical framework, relevant aspects of the circular economy, social enterprises and opportunities and challenges with operating in an emerging market are presented. A conceptual framework concludes the literature review by illustrating how the concepts ties together. In order to answer the research questions, a qualitative research method has been followed throughout this single case study, combined with an abductive approach. The data has been collected through semi-structured interviews presented together with secondary data, in order to get a deeper understanding of the case. By examining an international social enterprise with operations in an emerging market, findings on what opportunities and challenges this social enterprise encounter in Indonesia are presented together with how they work towards a circular business model. This study indicates that the international social enterprise challenges the linear way of doing business and can be set as an example for other companies that has a social mission and wants to do business in a sustainable way.   The analysis discusses the relation between the theoretical concepts and the empirical findings, together with observations from the authors. The analysis is followed by the concluding chapter where the contributions are stated, and the research questions are answered, followed by implications, limitations and suggestions for future research. The findings showed that international social enterprises can find opportunities in infrastructure- and institutional gaps in emerging markets. In addition, the findings indicate that a strong social mission can reduce the challenges of operating in an emerging market. The findings have contributed to introducing the social enterprise phenomenon into the international business research field, as well as international social enterprises operating in emerging markets. The authors also provide their definition of the concept ‘social enterprise’.

Background: The resource demanding textile industry has long been linked to the linear economy, an economy contributing to negative effects on the environment. However, there is an alternative to the linear economy, namely the circular economy. In a circular economy, a closed-loop design is promoted in order to eliminate the negative effects of the linear economy. However, in the context of the Swedish textile industry, there is a lack of case studies on the topic and especially regarding experienced barriers to a circular business model as well as drivers and enablers needed to overcome these barriers. Purpose: The purpose of this research is to support the development of the Sustainable Development Goal 12: sustainable production and consumption. This is done through exploring the experienced barriers to circular business models among companies in the Swedish textile industry at a macro and micro level, but also drivers and enablers in order to overcome these barriers. Method: This research follows an interpretivist view and an inductive approach based on a cross-case analysis of five companies. The research is qualitative and semi-structured interviews were conducted with open questions. The identified themes were analysed and interpreted with a careful awareness of the trustworthiness and ethical considerations. Conclusion: The result showed five barriers which appeared to be the most common across the companies. Namely, technological un-readiness, circularity costs, market unacceptance, financial shortage and knowledge gap. For these barriers, possible solutions in the form of drivers and enablers were identified. According to the findings, the identified drivers and enablers which have the greatest potential of positive impact on the barriers were as follows: knowledge sharing, collaboration, regulatory changes, more research and refocus of efforts

Background As of today the textile and fashion industry mainly relies on a linear production model, also referred to as the take-make-waste system. This economy depends solely on the single use of raw materials leaving space for an open-ended production and no intention of salvaging or recovering resources. Such a system cannot be supported by the environment in the future; therefore, several stakeholders are starting to embrace circular production systems and a closed-loop economy. One example of these efforts is take-back schemes (TBS) which strive to make the fashion industry more regenerative and restorative by narrowing, slowing, and closing the resource loops. Nonetheless, practitioners and academia have found adversities during the implementation stage which instead require competent knowledge, skills, and unique capabilities to achieve a successful performance. Purpose To achieve a successful implementation of a TBS, companies require unique capabilities that allow them to adapt and adopt a sustainable innovation. Therefore, this study investigates the dynamic capabilities (DCs) needed to implement a TBS in order to provide practitioners and academia with a guide that eases the application, overcomes the known adversities as well as explores the relationship between these and the relevant DCs. Methodology The research was based on a multiple case study method embracing abductive reasoning by extending the theory of DCs for circular business model implementation to TBS within the fashion industry. Semi-structured interviews were conducted with three companies applying different types of take-back schemes; the primary data was strengthened by document research and a validation round of interviews. The data was analyzed through qualitative thematic content analysis. Further, the characteristics of the study lend themselves well to be represented through a qualitative causal loop diagram appropriate for developing novel solution strategies such as the DCs. Findings The results show, through the use of two maps, that several DCs have to be developed when implementing a TBS in order to reach a substantial competitive advantage in the form of a cost leadership, differentiation or focus strategy. Further, the causal loop maps also shed light on the different relationships between DCs and how these can be exploited to overcome the difficulties or utilizing the possibilities in implementing a TBS. Practical implications and research limitations - The thesis creates new insights on TBS implementation through the use of DCs by presenting two causal loop maps. Thus, aiding practitioners and allowing them to quickly recognize their current situation against the maps as well as what changes need to be made following the suggested capabilities. The study is limited by the choice of interviewed companies, which represent only retailers with TBS in Sweden.

Thesis’ background This thesis intends to contribute to the literature gap identifying when connecting the literature on capabilities required for the transition towards circular business models and the literature that investigates the value creation and capture in these business models. Research aim Identifying the key capabilities that facilitate the transition towards circular business models and investigating their use for value creation and capture Methodology A qualitative approach was followed, and semi-structured interviews were conducted with four managers working at companies that are experiencing circular business models Findings Eight key capabilities were identified from this research including: (1) Developing the systemic thinking, (2) Managing the circular network,(3) Managing knowledge, (4) fostering open innovation, (5) Understanding customer’s requirement for exploring the wasted value, (6) Designing products for longevity, (7) Innovating in the sale and use phase and (8) managing circular suppliers to close the loops between the end use and the production. Deploying these eight key capabilities with a systemic thinking would enable companies moving to circular business models and creating and capturing economic and non-economic sustainable values.

Purpose: This thesis aims to contribute to the literature on how the value chain for electronic components can be leveraged to obtain circular business models (CBM). By implementing activities in the value chain, circular economy (CE) can be enhanced and a circular value chain obtained. The purpose lies in mapping out activities in the value chain of electronic components and existing barriers to acknowledge where circularity can be increased by CE strategies. Based on this observation, the future path towards CBM will be facilitated. This thesis aims to answer the following research questions: What are the main barriers for a circular value chain in electronic components? and How can the transformation towards a CBM for electronic components be facilitated by a circular value chain?  Method: A qualitative case study has been carried out at Volvo CE. The study is of an abductive approach, where previous theories on CE strategies and value chains were utilised to understand how the transformation towards a CBM can be applied for electronic components. A literature review of the key concepts was conducted and primary data was collected through interviews and one focus group for validation. The data has been analysed through the use of a thematic analysis. Findings: Findings suggest that four areas are of high importance in a circular value chain for electronic components: management, technology department, suppliers relations and aftermarket. The main barriers hindering CE are insufficient objectives, inadequate external value chain integration, limited education, and inertia in technological development. Findings show that the barriers can be mitigated through enhancing CE in the following activities: strategy and organisational vision; cooperation and partners; education and qualifications; innovation and technical development. The result presents how the circular value chain is interconnected with a CBM, visualising how the key activities will facilitate the transformation towards a CBM.  Theoretical contributions & managerial implications: This thesis contributes to the scarcity of literature on value chains in electronic components and adds to research on the connection between value chains and circular business models. The thesis can act as guidance for managers when making the transformation towards a CBM, by highlighting how CE activities can be applied for a more circular value chain.  Limitations and future research: This is a single case study, making the study limited in how applicable the findings are to other industries and countries. Future studies can validate the result by examining value chains in similar companies, to improve the generalisability of our result. This thesis is limited to investigating the value chain from a strategic perspective and we acknowledge that a mapping of the operational value chain can be a matter for future research. We focus on collaboration, but operations that enhance CE in daily activities in production of electronic components are yet to be investigated.

As more companies in the resource-intensive fashion industry start their transition journeys towards circular business models (CBMs), driven by social and regulatory pressures, understanding how companies navigate this transformative process is crucial. This thesis contributes to prevailing research by analysing the challenges faced by linear companies in the fashion industry when adopting more circular models through various initiatives, dividing them by the CBM they apply, and considering their corresponding solutions to these challenges. By interviewing nine companies and four industry experts, we investigated the CBMs: product life extension, circular supplies, resource recovery, and product-as-a-service. Our findings indicate some common challenges include uncertain market demands, high costs and complex logistics, which caused profitability concerns and impeded companies’ transitions. Meanwhile, some challenges were CBM or company-specific. Companies employing circular supplies and resource recovery models faced cost considerations related to material price and availability, while product life extension models struggled with material access and limitations within the organisation or network. Significant market challenges were observed for the product-as-a-service model. To cope with these challenges, companies maintained small-scale CBMs and/or gradually scaled them based on changing circumstances or built collaborative networks within the value chain. Strengthening internal human capital was another coping strategy.

Bakgrund: Övergången från en linjär till cirkulär ekonomi är något som har adresserats på en global nivå. SMF står för 56% av den svenska sysselsättningenoch är därmed en stor faktor i den svenska omställningen till en cirkulär ekonomi. För att kunna ställa om till en cirkulär ekonomi krävs det att de cirkuläraföretagen har tillgång till finansiering. Det finns en stor mängd forskning om olika typer av cirkulära affärsmodeller och hur de påverkar ett företags operativa verksamhet. Det finns även mycket forskning kring de finansiella förutsättningarna för SMF. Något som inte diskuteras lika mycket är hur de finansiella förutsättningarna ser ut för cirkulära affärsmodeller i SMF. Syfte: Syftet med denna uppsats är att kartlägga hur de finansiella förutsättningarna för att implementera och driva cirkulära affärsmodeller ser ut i svenska SMF. Metod: Studien är en kvalitativ tvärsnittsstudie som är utförd med en abduktiv ansats och med realism som vetenskaplig utgångspunkt. Det empiriska materialet har samlats in via semistrukturerade intervjuer med nio respondenter från olika SMF med cirkulära affärsmodeller och en respondent från ett finansieringsinstitut. Ett målstyrt urval har använts som urvalsmetod för att identifiera företag och respondentpersoner i relevanta positioner som skulle kunna bidra till studiens syfte. Slutsats: Resultatet av studien visar att SMF med cirkulära affärsmodeller skiljer sig i vissa avseenden gentemot linjära SMF när det kommer till finansiella förutsättningar. Cirkulära SMF:s finansiella implikationer kan medföra särskilda utmaningar som begränsar deras tillgång till finansiering, men det finns även implikationer som agerar som möjliggörare. De finansiella förutsättningarna skiljer sig mellan olika typer av cirkulära affärsmodeller i vissa avseenden, men förutsättningarna kan även skilja sig beroende på andra faktorer såsom ålder och storlek. / Background: The transition from a linear to a circular economy is being addressed on a global level. SMEs account for 56% of Swedish employment and are thus a major factor in the Swedish transition to a circular economy. Transitioning from a linear economy to a circular economy requires that thecircular businesses have access to financing. There is a large body of research on different types of circular business models and howthey affect a company's operational activities. There is also plenty of research on the financial preconditions of SMEs. There is however a lack of research on the financial preconditions for circular business models in SMEs. Research aim: The aim of this paper is to identify the financial preconditions for implementing and operating circular business models in Swedish SMEs. Method: The study is a qualitative cross-sectional study conducted with an abductive approach and with realism as a research paradigm. The empirical material was collected via semi-structured interviews with nine respondents from different SMEs with circular business models and one respondent from a financial institution. Targeted sampling was used as a sampling method to identify companies and respondents in relevant positions that could contribute to the aim of the study. Findings: The results of the study show that SMEs with circular business models differ in some respects from linear SMEs in terms of financial preconditions. The financial implications of circular SMEs may pose specific challenges that limit their access to financing, however there are also implications that act as enablers. Financial preconditions differ between different types of circular business models in some respects, but preconditions may also differ depending on other factors such as age and size of the enterprise. / Mistra REES

Purpose - The aim of the study is to further bridge the gap regarding adoption of Circular Business Models (CBM) more specifically in this case, the barriers to the adoption of Green Steel CBMs, and how Business Models (BM) can be configured for the adoption of Green Steel CBMs. Method - The research questions in the study were answered through a thematic analysis based on a three-phase data collection consisting of two informal meetings with industry specialists and 25 semi-structured interviews, followed by eleven additional interviews from a Green Steel conference to validate the findings of the semi-structured interviews. Findings - The analysis of the interviews resulted in eight identified barriers towards Green Steel CBM adoption, and eight enabling factors for the configuration of BM components specified for Green Steel CBM adoption. Furthermore, the findings present a framework showcasing how to utilize the enabling factors to overcome the barriers for the facilitation of CBMs in the steel industry.  Theoretical contribution – The study contributes to existing literature by providing a steel industry perspective on the barriers for the adoption of CBMs and presenting a framework for the configuration of BMs to overcome the barriers. The study further contributes with managerial insights to the literature towards the Green Steel transition, in contrast to the existing technical perspectives that previously has been conducted. Practical contribution - The study offers practical guidance for decision-makers in the steel industry and other industries undergoing similar transitions. The framework work as guidance for the configuration and adoption of Green Steel CBMs, highlighting the role of collaborations between stakeholders to enable new revenue streams and economic opportunities. Limitation and future research – The study was conducted with a restricted number of interviews and geographical reach, making the generalizability of the study limited. Future research could broaden the scope to include perspectives from additional regions, industry segments and stakeholders. / Syfte - Syftet med studien är att överbrygga kunskapsgapet gällande adopteringen av cirkulära affärsmodeller, mer specifikt i detta fall, barriärer för adopteringen av cirkulära affärsmodeller för Grönt Stål och hur affärsmodeller kan konfigureras för adopteringen av affärsmodeller för Grönt Stål. Metod - Forskningsfrågorna i studien besvarades genom en tematisk analys baserad på en datainsamling i tre faser bestående av två informella möten med branschspecialister och 25 semistrukturerade intervjuer, följt av elva intervjuer från en konferens om Grönt Stål för att validera resultaten av de semistrukturerade intervjuerna. Resultat - Analysen av intervjuerna resulterade i åtta identifierade barriärer för adopteringen av cirkulära affärsmodeller för Grönt Stål, samt åtta möjliggörande faktorer för konfigurationen av affärsmodells komponenter som specificerats för adopteringen av cirkulära affärsmodeller för Grönt Stål. Ytterligare presenteras resultaten i ett ramverk som visar hur man kan använda de möjliggörande faktorerna för att övervinna barriärerna och främja cirkulära affärsmodeller i stålindustrin. Teoretiskt bidrag – Studien bidrar till befintlig litteratur genom att tillhandahålla ett stålindustriperspektiv på barriärerna för adopteringen av cirkulära affärsmodeller och presentera ett ramverk för konfigurationen av affärsmodeller för att övervinna barriärerna.  Praktiskt bidrag - Studien ger praktisk vägledning för beslutsfattare inom stålindustrin och andra industrier som genomgår liknande omställningar. Ramverket fungerar som vägledning för konfigurationen och adopteringen av cirkulära affärsmodeller för Grönt Stål, och belyser rollen av samarbeten mellan intressenter för att möjliggöra nya affärsmöjligheter.  Avgränsningar och framtida studier – Studien genomfördes med ett begränsat antal intervjuer och geografisk räckvidd, vilket gjorde studiens generaliserbarhet begränsad. Framtida forskning skulle kunna bredda omfattningen till att inkludera perspektiv från ytterligare regioner, branschsegment och intressenter.

Background: Regulations and Governments prompt companies to reassess their practices and align with sustainability standards. It emphasizes a transition towards circular business practices, which requires large amounts of capital to commit to the adoption of circularity fully. The transportation sector is a prime example of an industry undergoing a significant circular transformation due to its environmental impact. Circular servitization has complemented the circular transformation by offering products as services instead of selling them outright. This has had severe financial statement implications since the operations differ from linear practices and requires large investments. Financial institutions still assume techniques, modulation, and evaluation processes adapted for linear purposes, which creates obstacles to capturing the value circular business models generate. Subsequently, financial institutions are hesitant to fund circular business models due to the perception of increased risk. Hence, financial inertia occurs and hinders the development of circular businesses.  Purpose: This research adopts the perspective of financial institutions and examines the barriers and enablers that impact companies' transitions to circular business models, leading to or mitigating financial inertia.  Method: The study is qualitative and adopted an abductive approach to contrast theory and findings with the interpretive research paradigm. The primary data was collected from eleven different respondents from a Swedish financial institution. Sampling was done non-randomly with a purposive sample and a convenience input to gather data from respondents who were part of the financial institution and knowledgeable in the circular transition.  Findings: The aim of the study was to answer two research questions regarding barriers causing, and enablers mitigating financial inertia. The findings provided three soft and six hard barriers relating to financial techniques, modeling, and evaluation methods, along with internal competence about circularity, stakeholder involvement, and regulations. Additionally, the study found three soft and six hard enablers which could be interpreted as underlying drivers for mitigating financial inertia.

Titel: Från avfall till resurs: Hinder och möjligheter för uppskalning av cirkulära affärsmodeller i klädindustrin Bakgrund: Dagens resursutnyttjande är inte hållbart och det ökade fokuset kring cirkulära lösningar uppmanar till både behov och intresse för förändring. Dessa anpassningar handlar bland annat om att övergå från en linjär till en cirkulär affärsmodell för att göra bättre nyttjande våra resurser. Cirkulära affärsmodeller blir allt viktigare, men hur dessa kan skalas upp finns utrymme att vidare studera. Syfte: Syftet med denna studie är att identifiera centrala faktorer som har inverkan påskalbarheten av cirkulära affärsmodeller i klädindustrin. Metod: Studien använder en kvalitativ forskningsstrategi med en fallstudiedesign. Forskningsperspektivet i studien är hermeneutiskt och har kompletterats med en abduktiv ansats för att vidareutveckla det hermeneutiska tillvägagångssättet och skapa förståelse. Empirin i studien baseras på nio semistrukturerade intervjuer med både företag och experter från olika multinationella företag. Slutligen används en tematisk analys som analysmetod. Slutsats: Studien har identifierat sex hinder och sex möjliggörare för att skala upp den cirkulära affärsmodellen i klädindustrin. Dessa faktorer identifierades utifrån en analysmodell som byggde på strukturell, strategisk och operativ nivå där vissa faktorer var mer centrala än andra. De hindrenmed den mest avgörande betydelsen för uppskalning av cirkulära affärsmodellen var; eftersläpande och bristfälliga regelverk, komplexa värdekedjor och resurstillgänglighet. De möjliggörarna med den mest avgörande betydelsen var; proaktiva regelverk, samarbete och partnerskap och resurseffektivisering. / Title: From waste to resource: Barriers and enablers for scaling up circular business models in the clothing industry Background: The current use of resources is not sustainable and the increased focus on circular solutions is prompting both the need and interest in change. These adaptations include moving from a linear to a circular business model in order to make better use of our resources. Circular business models are becoming increasingly important, but there is room to study how these can reach scalability. Purpose: The purpose of this study is to identify key factors influencing the scalability of circular business models in the fashion industry. Method: The study utilizes a qualitative research strategy with a case study design. The research perspective in the study is hermeneutic and has been complemented with an abductive approach to further develop the hermeneutic approach and create a modified understanding. The empirical data in the study is based on nine semi-structured interviews with both companies and experts from various multinational corporations. A thematic analysis is employed as the analytical method. Conclusion: The study has identified six barriers and six enablers for scaling up the circular business model in the clothing industry. These factors were identified using an analytical model based on structural, strategic and operational levels, with some factors being more central than others. The barriers with the most crucial importance for scaling up the circular business model were; lagging and inadequate regulations, complex value chains and resource availability. The enablers with the most crucial importance were; proactive regulations, collaboration and partnerships, and resource efficiency. Keywords: Circular business model, resource management, clothing industry, scalability.