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Enabliing Circular Economy Business Models through Digital Technologies: Exploring the Current Practice in Danish Companies

Kate Jennifer Ting

Student thesis: Master thesis

Abstract

Research Problem
Extensive reliance on natural resources has driven economic growth but has also resulted in severe environmental degradation, and unsustainable demands on the Earth's capacity. Transitioning from the traditional 'take, make, dispose' model to a circular economy enabled by digital technologies is recognised as a promising solution. Despite this potential, progress is moving slowly and proving to be more intricate in practice. For Europe to achieve 2050 climate targets, it is imperative to enable and scale circular models now.

Research Question
How are Danish companies collaborating with technology and consultancy providers to implement digital technologies that enable circular strategies and business models?
SQ1: What is the current state of awareness and adoption of circular strategies? SQ 2: What are the current drivers for companies to transition to a digital technology-enabled CE business model? SQ3: What are the current challenges faced by companies in transitioning to a digital technology-enabled CE business model?

Design & Methodology
Research approach: Interpretivist philosophy, inductive exploratory, and mixed methods
Research Design: Grounded theory, semi-structured interviews, cross-sectional time horizon
Analsysis: Open and axial coding, thematic analyses, frequency tables

Results & Contribution
15 interviews from Danish companies, digital technology providers, and consultancy providers
Aggregate themes: Current adoption state: implementation objectives, digital technologies implemented, collabrative practices; adoption challenges: intra-organisational, inter-organisational. scaling, institutional acceptance; adoption drivers: regulatory, consumers, internal; Impact: PaaS, circular design-focused, and rental business models, take-back systems, localisation of supply chains, and energy policy
Aggregate themes and concepts can serve as a foundation to further discourse
Analysis of most popular digital technology implementations in the 9R and PLC Stages framework
9R and PLC Stages framework can be used as a tool for future researchers or applications of practitioners

EducationsMSc in Business Administration and Digital Business, (Graduate Programme) Final Thesis
LanguageEnglish
Publication date2024
Number of pages115
SupervisorsKristjan Jespersen