Enabling Circular Business Model Innovation : A Multiple-Case Study of Swedish SMEs and Business Support for Circularity

Sammanfattning: Circular economy (CE) is seen as a strategy to achieve sustainable development, requiring commitment and support from multiple actors on all system levels; from companies and products to governments and nations. Circular business models (CBMs) are regarded as an important leverage to implement circularity at an organizational level, and business support is considered an important enabler of these. Communication between practitioners and policy-makers, as well as understanding the barriers of CE in the local context, can facilitate the development of efficient business support. This thesis has from a company perspective explored barriers to circular business model innovation (CBMI) and the impact of firm-specific business support activities on this innovation process. This was done through a multiple-case study of ten Swedish SMEs who had received direct business support for circularity, and thus had initiated a circular project. The study has identified seventeen different barriers across five categories, spanning over the entire innovation process from idea to full implementation. Overall, economic viability appears to be an important factor which relates to and depends on several other barriers, and the novelty of CE contributes to the occurrence of many identified challenges. While some barriers are more common across all ten cases, often challenges related to market demand, financing and knowledge, others are more specific for each case and circular strategy. Furthermore, this study has found that coaching, training, and funding are firm-specific activities that can help SMEs overcome mainly internal barriers in the early stages of the CBMI process, addressing several of the most common barriers identified in this study. This research has also included a company perspective on the costs and benefits of the activities, and pointed at important factors to consider in the development of future business support.