Barriers to adopting circular business models: A cross-sectoral analysis

Abstract

Firm-level adoption of circular business models is a crucial part of the transition toward circular economy, but companies that delve into such pursuits often encounter a series of barriers that hamper their success. Although multiple studies on barriers to circular economy have been made, there is a lack of understanding of how barriers are formed under firm-specific characteristics such as sectoral conditions and the type of circular business model adopted. To bridge this gap, we illustrate a barrier framework in a multiple-case study including nine Swedish firms. We derived about 28 barriers within five categories of circularity approaches (design, waste, service, platform, and nature) across three sectors (furniture, electronics, and garment). This research contributes to the circular economy literature by revealing how adhering to certain sectors and circular business approaches significantly changes the way barriers are perceived by firms. The outcomes may support both practitioners and policymakers as they facilitate circular economy transitions.