From awareness to practice : Insights from the managers of Finnish circular economy pioneering companies

Abstract

In recent years, research on circular economy has increased tremendously, as well as gained attention from governments and business practitioners. However, the knowledge of effective and efficient transition from a linear business model to circular economy remains limited. Therefore, the objective of this research is to explore the awareness and current practices of managers from companies implementing circular business models. The required data for this research were collected from 22 managers, whose companies belong to the list of “41 pioneering Finnish circular economy companies”. Methodologically, the study adopts a qualitative approach, following content analysis. The collected data is analyzed rigorously to uncover insights regarding managers’ awareness to circular economy, experienced barriers, drivers, and indicators of circular economy. Key research results show that 66.7% of responses represent circular economy as a core activity, with 68% having already integrated circular economy principles into the supply chain. Main barriers include lack of knowledge and technology (21.4%), while strategies to address the barriers focus on promoting technology innovation (33.3%) and improving education and communication (31.3%). Besides, circular economy performance is measured primarily through recycled materials used (21.7%). Additionally, the study investigates the approaches companies employ to develop circular economy implementation strategies, an area often overlooked in circular economy literature. The findings indicate that process-led and market-led management strategies are commonly practiced, accounting for 32% and 21%, respectively. Overall, this study sheds light on the current state of circular economy implementation at the micro level and provides valuable insights for policymakers, practitioners, and researchers aiming to promote the transition towards a circular economy.