Servitization for a Circular Economy in Construction

Abstract

Circular economy is pronounced in UN's Global Goals agenda 2030 as an alternative model for traditional linear production and consumption. Servitization refers to an increased resource efficiency and mitigation of climate effects by adding a service dimension through service-based offerings (e.g., leasing and rentals), which are key to circular economy. The construction sector has large climate impacts where renting can contribute towards a more efficient resource use in this sector. The aim of this study is to explain factors that influence business customer behavior related to equipment rental in the construction industry, using a qualitative case study design and a Social Practice Theory perspective. This study explores how equipment renting in the construction industry could be used to the corporate sustainability communication and strategy. Findings suggest that convenience, performance, and clear communication of values are key motivators for service offers.