Industrialization and globalization of companies has promoted fast, easy and profitable business solutions. A linear business model (LBM) is seen as the most common way to do business. However, recent studies have enlightened how LBMs are detrimental to the health and biological cycles of the earth and its inhabitants. To prevent this, circular business models (CBM) are being introduced as a feasible while still profitable solution. CBMs are defined by Oghaze & Mostaghel, (2018), as the “…rationale of how an organisation creates, delivers, and captures value with slowing, closing, or narrowing flows of the resource loops”, as they base their business on products and services designed to close or slowing the resource loops, decreasing the overall need of virgin resources.  However, to make these major changes in the current way of designing products and services has to be made, taking into consideration the change in design objectives from a linear to a circular model. Today, there are many circular design methods (DM) developed by academia to aid designers in designing sustainable products and services, however, the uptake of such DMs in the industry is quite low. Such a low level of uptake is often due to a poor fit between the DM and the context it is adopted in, which does not aid its seamless integration in existing processes.  Therefore, this research aims to identify DM characteristics that will aid industries to be adopted or adapted by companies transitioning towards CBMs. To do so, three research questions were developed: i) What are the most critical internal and external drivers in a company that enable the successful adoption of a circular design method?  ii) What are the contextual barriers that companies encounter when adopting or adapting circular design methods? iii) How can the design method adopted or adapted be evaluated to improve their implementation in a company? To answer these research questions, a survey was initially carried out, and subsequent interviews were conducted amongst participants of five different companies from various sectors and expertise. The survey and interviews were grounded in previous research concerning types of CBM and different types of barriers and drivers influencing the adoption of circular DMs.  The result from the survey indicates that the ability to make trade-offs when confronted with sustainability aspects, management commitment to a CBM, good communication and sharing of environmental knowledge, both through different departments and with external actors like suppliers, as well as allocating resources such as time, personnel, funds, and having clear business incentives are needed to promote the use of circular DMs. From the interviews, it was also found that barriers to the effective use of DMs are lack of environmental knowledge throughout the supply chain and wrong identification of actors in the supply chain as well as limited communication with external actors. Furthermore, the research revealed several characteristics of the DMs such as simplicity, flexibility and informativity need to be adapted to leverage and overcome the identified contextual drivers and barriers respectively, for their successful deployment within the companies.

The circular economy and its implications on businesses have been an area of interest for researchers and firms alike. The transition has been a rough one, but many firms are moving towards sustainable practices these days, if not circular.  One of the major challenges that lie within the circular economy and circular business models is that there is very little or partial understanding of how value can be created for a customer within this realm. Moreover, complications arise when fragmented elements drive the idea behind customer value creation in a circular business model setting.     Therefore, in order to study and understand more about this concept, we performed qualitative case-study research with the help of a Swedish start-up. Our interviews included 7 actors: 2 from the case company, and 5 of their customers. An established customer value creation framework was adopted to analyze and compare with the findings from our study. This framework consists of 4 components, Functional/Instrumental value, Experiential/Hedonic Value, Cost/Sacrifice value, and Symbolic/Expressive value. Keeping this framework as the foundation for our study and by using thematic analysis, the empirical data collected was analyzed and changed to categories, initial codes, and final codes which has overarching themes from the framework used.   Firstly, the findings of the study indicate that there were a lot of similarities and differences between the opinions of the firm for value proposition and the opinion of the customers for value creation. Secondly, it indicates that each element has a unique contribution to the overall phenomenon of customer value and finally it indicates the importance for companies to focus on each element individually. We highlight in our study how each element in the framework is connected to the drivers of satisfaction to generate customer satisfaction.

Uppsatsen syftar till att bidra med kunskap kring de svårigheter och de barriärer som föreligger vid en implementering av en cirkulär affärsmodell. Studien utgår från ett företagsperspektiv, vilket även kompletterats med ett kundperspektiv för att skapa ett holistiskt perspektiv. Uppsatsen inkluderar undersökningar kring de anställdas uppfattningar, i avseende att identifiera eventuella barriärer. Vidare inkluderas även undersökningar kring kundernas uppfattningar av IKEA:s cirkulära arbete. En kvalitativ ansats har använts då en fallstudie på ett IKEA-varuhus i Mellansverige genomförts. Ostandardiserade och halvstrukturerade intervjuer har skett, där sex anställda deltog i djupare intervjuer och nitton besökare på IKEA-varuhuset deltog i mer kortvariga intervjuer. Data användes sedan för en analys och diskussion i förhållande till tidigare forskning. Den mest omfattande barriären som upptäckts på fallstudiens enhet är kommunikation, där både den interna kommunikationen visar på brister kring bland annat informationsdelning, samt den externa kommunikationen gentemot kunder i sin helhet. Vidare belyser uppsatsen brister kring varuhusets företagskultur där hållbarhetsutbildningen är återhållsam, samt har distinkta skillnader framgått i de anställdas motivation. För en lyckad omställning av cirkulär affärsmodell behövs extern och intern kommunikation, långsiktig intern utbildning, samt motivation för att driva cirkulära innovationer. / The main aim of this thesis is to assess, understand and contribute to the challenges and barriers related to the implementation of a circular business model. The thesis applied a holistic perspective where both organizational and customer perspectives are studied. In this study, we assess both employees and customers perceptions regarding the transition to a circular way of doing things in order to identify eventual barriers and challenges. The study has a qualitative approach with a case study of an IKEA store in the central part of Sweden. We have used semi-structured and unstandardizedinterviews, where six employees of IKEA participated in more insightful interviews and nineteen customers participated in short interviews. The collected data was used for analysis and discussion in relation to previous research (theoretical framework). In this study, we have found that the vital barrier in the IKEA store is communication, for instance, the circular informational sharing is lacking in internal communication. The external communication towards customers is also inadequate. Furthermore, some difficulties regarding the corporate culture of IKEA is emphasized. The education concerning sustainability and circular economy is restrained and distinctions in employee motivation has emerged. In order to success, business need a readjustment towards a circular business model implementation, long-term education is necessary to create knowledge, while motivating the employees in order to facilitate circular innovations.

There’s increasing evidence that activities from humans are affecting the earth system to a degree that is crossing the planetary boundaries. During the last decade, Circular Economy has gained attention from both academia, companies, and policymakers and is seen as one way to address economical and sustainability issues. A circular transition requires the implementation of innovative business models, but the uptake of circular business models is still slow. In Sweden, 99,9% of all companies are classified as small and medium-sized enterprises. Those companies play an important role in the circular transition, but the process is however slow due to internal factors like lack of resources and competencies alongside other barriers like regulations, market, and lack of support. Despite a lot happening in the field of circular transition for small and medium-sized enterprises, there's still little research focused on the ongoing state of circular economy in practice. In this exploratory study, semi-structured interviews have been used to explore the ongoing state in Sweden. The aim of the study is to explore how intermediaries are supporting small and medium-sized enterprises with adopting circular economy in Sweden and what kind of challenges and opportunities the intermediaries have experienced along the circular transition process. The results show that we should go beyond the general drivers and barriers for adopting a circular economy. The challenging barriers might not be a lack of resources and regulations, it might be the lack of awareness and interest from companies themselves. What became clear during the interview study was that the environmental benefits of adopting circular economy is not the driving force but rather a result of adopting circular economy. The motivation in the first place for adopting circular economy is that it can create a better and a smarter business. There was a consensus among the intermediaries that when one is workings with companies, one must highlight the business values of a circular economy: profitability, resource efficiency, loyal customers, etc. If companies don’t see the opportunities and benefits of adopting circular economy, they won’t prioritize and allocate resources for it. The complexity of a circular transition also requires collaboration on different levels: between companies, regions, business developers, municipalities, research institutes, policy developers, etc. To enable the overall collaboration, there’s a need for a comprehensive facilitator or coordinator on different levels (national, regional, and local) that can unify the national transition.

Background: Functional sales has in recent years become increasingly debated among companies, as a result of increased interest in developing more sustainable strategies. Meanwhile, companies lack knowledge of what changes functional sales causes, particularly about what incentives, barriers and financial implications that affect the development and implementation of the business model. Since companies are not fully aware of what aspects to take into consideration before implementing functional sales, many companies hesitate on taking the step towards a more sustainable future. Research aim: The research aim of this study is to investigate underlying incentives and barriers that affect the development and implementation of functional sales within retail industry, but also what financial implications it causes. Moreover, this study aims to investigate how the conditions for an implementation of functional sales can be improved, by managing the incentives and barriers identified. Method: This study has been conducted with pragmatism as a scientific starting point. Moreover, an abductive approach has been used. The research design for this study is qualitative design, where a simple case study was selected through a targeted sampling of ”a typical case”. The respondents were selected through a snowball and a targeted sampling. The method used for conducting the analysis was a thematic analysis. Findings: The incentives identified in this study were environmental sustainability, meeting customer needs, closer connection to the customer and profitability. The barriers identified were increased requirements for product design, increased costs for warehousing, service and transportation, changes in cash flows, existing accounting principles and lack of profitability. In order to strengthen versus bridge these incentives and barriers, companies should take the following aspects into consideration: a well-adapted design, environmentally friendly and efficient transportation, ensure high inventory turnover rate, an adequate pricing, a well- formulated guarantee agreement and ensure financing. / Bakgrund: Funktionsförsäljning har på senare år blivit allt mer omdebatterat bland företag, till följd av att ökat intresse av att utveckla mer hållbara strategier. Samtidigt saknas forskning om vilka processer som förändras vid funktionsförsäljning, samt vilka incitament, hinder och finansiella implikationer som påverkar utveckling och implementeringen av affärsmodellen. I och med att företag inte är fullt medvetna om vilka aspekter de behöver ta i beaktning inför en implementering, tvekar företag att ta steget mot en mer hållbar framtid. Syfte: Denna studie syftar till att undersöka vilka bakomliggande incitament och hinder som påverkar utvecklingen och implementeringen av en cirkulär affärsmodell baserad på funktionsförsäljning inom detaljhandeln, samt vilka finansiella implikationer de ger upphov till. Vidare syftar studien till att undersöka hur förutsättningarna för en implementering av funktionsförsäljning kan förbättras, genom hantering av dessa incitament och hinder. Metod: Studien har genomförts med pragmatism som vetenskaplig utgångspunkt. Vidare har ett abduktivt angreppssätt använts. Studiens forskningsdesign är kvalitativ, där ett fallföretag valts ut genom ett målstyrt urval av ”ett typiskt fall”. Respondenterna valdes ut genom både ett snöbollsurval och ett målstyrt urval. Den analysmetod som studien har använts sig av är en så kallad tematisk analys. Slutsats: De incitament som identifierats i denna studie är miljömässig hållbarhet, möta kundens behov, komma närmare kund samt lönsamhet. De hinder som identifierats är ökade krav på produktdesign, ökade kostnader vid lagerhållning, service och transport, förändrade kassaflöden, befintliga redovisningsprinciper samt utebliven lönsamhet. För att förstärka respektive överbrygga dessa bör företag ta följande aspekter i beaktning: en anpassad design, miljövänliga och effektiva transporter, säkerställa hög lageromsättningshastighet, rätt prissättning, ett välformulerat garantiavtal samt säkerställa finansiering.

Sweden's economy is currently heavily dependent on a linear economy model, where raw material ultimately is discarded as waste. The linear approach is unsustainable for manufacturing companies in the long term. To embrace a sustainable business model and ensure future competitiveness, vehicle manufacturers are actively exploring alternative strategies to reduce emissions. To meet the emission reduction targets established by EU regulations, the industry is actively embracing the adoption of electrification and autonomous vehicles. However, the management of end-of-life for electric vehicles and waste has not kept pace with the industry's growth. To address these challenges, there is a growing recognition of the need to transition towards a circular economy, which focuses on eliminating waste, maximizing the value of materials, and promoting environmental regeneration. This study focuses on identifying the barriers, enablers and opportunities that support the implementation of circular economy strategies within a Swedish vehicle manufacturing company, specifically in the areas of Rethink, Remanufacture, and Repurpose. The research methodology involved conducting literature reviews and interviews with company representatives, research institutes, and external experts in relevant fields. Additionally, an internal survey was conducted to assess employee attitudes and knowledge regarding circular business and the selected strategies. Through the analysis, several barriers and opportunities emerged, including cross-sector collaboration, co-creation, circular design, technology, ownership models, regulations, and organisational considerations. The findings from the literature study, the survey and the interviews were used for the development of the conceptual framework Case Company Circularity Platform. The platform aims to foster cross-sector collaborations through Repurposing vehicle components on a digital platform. To validate the potential of the concept, workshops were conducted with potential customers. The feedback received from the potential customers provided valuable insights, enabling further research and refinement of the concept. The analysis highlights the importance of clear goal-setting and defining objectives within the organisation. It emphasizes the need for cross-sector collaboration, leveraging advanced technologies for component tracking and Repurposing throughout their lifecycle, implementing a Product-as-a-Service ownership model. To achieve the desired legislative changes that promote circular economy, the case company must demonstrate a strong commitment and unified approach alongside the industry. By embracing circular practices and advocating for legislative changes, the case company can play a leading role in promoting sustainability and setting new industry standards. Overall, Repurposing presents an exciting opportunity for the case company to contribute to the way towards a sustainable future. / Sverige präglas av en linjär ekonomi, vilket innebär att råvaror utvinns, produceras, konsumeras, och sedan slängs som avfall. Detta koncept är inte hållbart på lång sikt för att driva ett tillverkningsföretag. I Sverige står transportsektorn för den största andelen av utsläpp i hela landet, där 94% av transportsektorns utsläpp kommer från vägtransporter. EU-förordningar har fastställt mål för att minska utsläppen. För att uppnå dessa mål arbetar tillverkningsföretag aktivt med utvecklingen av elektrifierade och autonoma fordon, medan hanteringen av "end of life" för dessa fordon och deras avfall inte hänger med i branschens tillväxt. Dessa utmaningar möts genom att övergå till en cirkulär ekonomi, som fokuserar på att minska avfall, maximera värdet av material och främja miljömässig återhämtning. Studiens mål är att undersöka hinder och möjligheter för att stödja implementeringen av cirkulära ekonomistrategier för en fordonstillverkare i Sverige, med fokus på strategiområdena "Rethink", "Remanufacture" och "Repurpose". Forskningsmetoden genomfördes genom litteraturstudier och intervjuer med företagsrepresentanter, forskningsinstitut och externa experter inom relevanta områden. En intern enkät genomfördes för att undersöka de anställdas förhållningsätt och kunskaper kring en cirkulär affärsverksamhet samt de valda strategierna. Resultaten från litteraturstudien, enkäten och intervjuerna användes för att utveckla det konceptuella ramverket "Case Company Circularity Platform". Syftet med plattformen är att främja tvärsektoriellt samarbete och en förlängning av fordonskomponenternas "end-of-life" genom utvecklingen av universellamodulära fordonskomponenter. För att validera potentialen i konceptet genomfördes fokusgrupper med potentiella kunder. Återkopplingen från de potentiella kunderna gav värdefulla insikter och förslag för framtida arbete med konceptet. Analysen betonar vikten av tydliga målsättningar inom en organisation. Den understryker också behovet av tvärsektoriellt samarbete och att nyttja avancerad teknik för spårning och återanvändning av komponenter under hela dess livscykel. Produkter som tjänster är en ägandeskapsmodell som anses vara en viktig faktor i en cirkulär ekonomi. Det är nödvändigt för företag inom fordonsindustrin att samarbeta för att uppnå lagändringar som främjar en cirkulär ekonomi. Genom att implementera cirkulära metoder och påverka lagstiftningen kan företaget inta en ledande roll i att främja hållbarhet och etablera nya branschstandarder. Sammantaget ger Repurposing en spännande möjlighet för företaget att bidra till en hållbar framtid.

There is an increasing awareness of the opportunities offered by the circular economy as a transition away from the linear economy that depletes the resources available. Manufacturing companies are especially challenged in this transition since they are often based on linear business models and supply chains. One way to achieve a circular supply chain is to dematerialize, which means that the use of physical products decreases, for example with the help of servitization. Dematerialization can be used to create opportunities to slow- and close loops which are two important mechanisms to reach circularity. The aim of this study is to explore what barriers exist and how these hamper the use of servitization as a part of dematerialization of supply chains in order to slow- and close loops. In this area, previous research is limited, especially when it comes to manufacturing companies and their supply chains. To address its aim the study employed a qualitative research method, including semi-structured interviews complemented by document analysis. This study identifies twelve specific obstacles for using dematerialization to reach a circular supply chain, and these can be broadly categorized in traditions, profit versus sustainability, business models, collaboration, and external factors. The conclusion of this study contributes by putting the findings in connection to previous research, as well as recommendations to manufacturing companies on how to overcome the barriers.

Bakgrund: Världen står idag inför en mängd olika hållbarhetsutmaningar, bland annat till följd av att många företag använder en linjär ekonomisk modell. Baserat på detta har modellen för cirkulär ekonomi utvecklats. Ett nödvändigt steg i omställningen till en cirkulär ekonomi är att övergå till en cirkulär affärsmodell. För att göra detta har den tidigare forskningen identifierat en mängd olika cirkulära aktiviteter. Det saknas däremot industrispecifik empiri på hur företag inom byggindustrin praktiskt går tillväga för att göra detta. Vi kommer därför undersöka byggföretagens arbete med att övergå till en cirkulär affärsmodell genom en jämförande flerfallstudie.  Syfte: Syftet med denna studie är att skapa en ökad förståelse för hur de fem största byggföretagen i Sverige använder cirkulära aktiviteter för att övergå till en cirkulär affärsmodell, samt vilka mönster som finns mellan dem. Dessutom syftar studien till att undersöka vilka skillnader som föreligger mellan byggföretagens cirkulära affärsmodeller.  Metod: Denna flerfallstudie har en kvalitativ forskningsstrategi, iterativ forsknings- ansats, och utgår från ett hermeneutiskt forskningsperspektiv. Det empiriska materialet består av semistrukturerade intervjuer med respondenter från de fem största byggföretagen i Sverige, och dokumentstudier i form av års- och hållbarhetsrapporter, samt byggföretagens hemsidor.  Slutsats: Studien visar att de studerade byggföretagen i Sverige utför nio olika cirkulära aktiviteter för att övergå till en cirkulär affärsmodell. Vidare påvisades olika mönster, i form av både likheter och skillnader, mellan byggföretagens arbete med dessa cirkulära aktiviteter. De mest framstående visade sig handla om huruvida arbetet utförs internt och/eller externt, samt huruvida det utförs i förebyggande syfte. Utifrån dessa mönster, i kombination med befintlig teori om resursflöden, konstruerades ett generiskt, jämförande ramverk som innefattar fyra typer av cirkulära affärsmodeller. Sammantaget kunde det konstateras att dessa cirkulära affärsmodeller skiljer sig åt mellan byggföretagen. / Background: Today, the world faces several different sustainability challenges, partly due to the fact that many companies use a linear economic model. Based on this, the model for circular economy has been developed. A necessary step in the conversion to a circular economy is to transition to a circular business model. To do this, the previous research has identified a number of different circular activities. However, there is a lack of industry specific empirical evidence on how construction companies practically perform this. We will therefore investigate the construction companies’ work on the transition to a circular business model through a comparative multiple case study.  Purpose: The purpose of the study is to increase the understanding of how the five largest construction companies in Sweden use circular activities in order to transition to a circular business model, as well as what patterns that exist between them. In addition, the study aims to investigate what differences there are between the construction companies’ circular business models.  Methodology: This multiple case study has a qualitative research strategy, an iterative research design, and is from a hermeneutic research perspective. The empirical material consists of semi structured interviews with respondents from the five largest construction companies in Sweden, and document studies in forms of annual- and sustainability reports, as well as the construction companies’ websites.  Conclusion: The study shows that the examined construction companies in Sweden perform nine different circular activities in order to transition to a circular economy. Furthermore, different patterns in forms of similarities and differences were detected between the construction companies’ practice of these circular activities. The most prominent patterns concerned whether the circular activities were performed internally and/or externally, and whether they were performed preventively. Based on these patterns, in combination with existing theory about resource flows, a generic and comparative framework was constructed that includes four types of circular business models. From this, it could be established that the circular business models differ between the construction companies.

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.

Circular business models can assist in reshaping and transitioning away from the current linear consumption pattern which can in turn allow us to achieve a circular economy. Businesses can change their operating model and consider a more sustainable alternative to their current production and consumption method. For businesses to assist in the transition of circular economy, the circular economy strategies can be integrated into their business models. Companies have already started to align goals and objectives to achieve this by measuring performance indicators. Key Performance Indicators (KPIs) are used to effectively communicate and set targets to be achieved within different levels of an organization. KPIs can be used to monitor the progress of different aspects of sustainability including environment, economic and social. Due to this reason, many industries are shifting towards a circular business model to ensure better resource utilization and sustainable operations. For companies to evaluate their progress towards their set targets and goals, performance measurement is crucial. In this study, relevant existing circular KPIs have been identified which can be implemented by the case companies to measure the performance of their supply chain and entire business model. The technical, environmental, and socio-economic dimensions are focused on this study while identifying the Key Performance Indicators. A systematic literature review was initially performed during this study. Data achieved from literature was then compared with empirical data. The empirical data is based on interviews and surveys conducted with the case companies which were later compiled to develop the suitable indicators. / Cirkulära affärsmodeller kan hjälpa till att omforma och övergå från det nuvarande linjära konsumtionsmönstret, vilket i sin tur kan göra det möjligt för oss att uppnå en cirkulär ekonomi. Företag kan ändra sin driftsmodell och överväga ett mer hållbart alternativ till sin nuvarande produktions- och konsumtionsmetod. För att företag ska bistå vid övergången till cirkulär ekonomi kan strategierna för cirkulär ekonomi integreras i deras affärsmodeller. Företag har redan börjat anpassa sina mål för att uppnå detta genom att mäta prestationsindikatorer. Key Performance Indicators (KPI) används för att effektivt kommunicera och sätta upp mål som ska uppnås inom olika nivåer i en organisation. KPIs kan användas för att övervaka utvecklingen av olika aspekter av hållbarhet, inklusive miljö, ekonomisk och social. Av denna anledning övergår många branscher mot en cirkulär affärsmodell för att säkerställa bättre resursutnyttjande och hållbara operationer. Prestandamätning är avgörande för att företag ska kunna utvärdera sina framsteg i förhållande till sina uppsatta mål. I denna studie har relevanta befintliga cirkulära KPIs identifierats som kan implementeras av fallstudieföretagen för att mäta prestanda för deras försörjningskedja och hela affärsmodellen. Fokus för denna studie är de tekniska, miljömässiga och socioekonomiska dimensionerna samtidigt som de viktigaste prestationsindikatorerna identifieras. En systematisk litteraturöversikt utfördes initialt under denna studie. Data erhållen från litteraturen jämfördes därefter med empiriska data. De empiriska uppgifterna är baserade på intervjuer och undersökningar som gjorts med fallstudiebolagen som senare sammanställdes för att utveckla lämpliga indikatorer.