Exploring institutional drivers and barriers of the circular economy: A cross-regional comparison of China, the US, and Europe

By V. Ranta, Leena Aarikka‐Stenroos, Paavo Ritala, Saku J. Mäkinen. Resources, Conservation and Recycling, 2017

562 citations recorded by the source corpus.

Abstract The Circular Economy (CE) has been identified as a sustainable alternative to the current linear economic model. Thus far, research on the circular economy has focused on methods for better conserving the value in material flows. As the CE is currently being adopted as a sustainable development strategy in, e.g., China and the EU, identifying and comparing the drivers of and barriers to CE implementation would be beneficial for the acceleration of the development path. To contribute toward this research area, we built on institutional theory via a multiple case study covering China, the US, and Europe. We analyzed each region as an institutional environment and considered manufacturer and integrator types of value chain actors due to their central role in CE implementation. As our key findings, we identified that the general drivers of the CE from each institutional environment support recycling as the primary CE action, while support for other CE types appears to be lacking. Regulatory measures have primarily driven increased recycling efforts on both the integrator and manufacturer sides. Similarly, identified normative indicators overwhelmingly point toward recycling, while increasing reuse faces cultural-cognitive barriers. Between regions, China differs due to its informal sector and strong regulative institutional support. We conclude that to improve institutional support for the CE and allow it to fulfill its potential as a sustainable growth model, diversified institutional support for reducing the products produced and materials used as well as increasing reuse are needed.

Subfields: Industrial and Manufacturing Engineering, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/985caa57c1fb2dc6e733c8e7eeb48209c163c003

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In Industrial and Manufacturing Engineering

1. Piero Morseletto
2. Gianmarco Bressanelli
3. Siri Aasma
4. Marco Perona
5. Nicola Saccani
6. Jonas Grafström

In Marketing

1. Piero Morseletto
2. Marco Perona
3. Gianmarco Bressanelli
4. Siri Aasma
5. Nicola Saccani
6. Jonas Grafström

In Strategy and Management

1. Piero Morseletto
2. Gianmarco Bressanelli
3. Siri Aasma
4. Marco Perona
5. Nicola Saccani
6. Jonas Grafström

Citations in the corpus

• Challenges in supply chain redesign for the Circular Economy: a literature review and a multiple case study (2018, methodology): “18 Cultural issues (linear mind-set) Internal resistance to change, especially given the prevailing linear mind-set and structures in industries (also referred to as the ‘Linear lock-in’), limited awareness and commitment (from both top management and employees) It assumes a specific meaning and rel”
• Targets for a circular economy (2020, background): “and only cover limited arrays of CE solutions, such as recyclying or efficiency (Ranta et al., 2018; Bjørn et al., 2017; Milios, 2016).”
• The Healthcare Sustainable Supply Chain 4.0: The Circular Economy Transition Conceptual Framework with the Corporate Social Responsibility Mirror (2019, background): “[7] affirm that sustainable practices are alternatives for the transition between the two economy concepts.”
• Breaking circular economy barriers (2021, background): “…classified as waste when they can still be reused Lacking knowledge for implementation of CE policies Not enough R&D Inertia in consumer behaviour and business culture (Ranta et al., 2018) Case studies and interviews across EU, US and China, primarily focused on institutional barriers.”