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Institutional incentives in circular economy transition: The case of material use in the Dutch textile industry

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TLDR
In this article, the authors compare and contrast empirical evidence from cases derived from the textile industry in The Netherlands, and concepts derived from institutional analysis and literature on circular economy to inductively build a cohesive conceptual framework.
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This article is published in Journal of Cleaner Production.The article was published on 2017-07-01 and is currently open access. It has received 228 citations till now. The article focuses on the topics: Circular economy & Institutional analysis.

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Industry 4.0 and the circular economy: a proposed research agenda and original roadmap for sustainable operations

TL;DR: The paper extends the state-of-the-art literature by proposing a pioneering roadmap to enhance the application of CE principles in organisations by means of Industry 4.0 and CE principles based on the most relevant management theories.
Journal ArticleDOI

Towards a consensus on the circular economy

TL;DR: The growing importance of the circular economy as a way to attain sustainable development has encouraged scholars to propose different ways to understand it and highlight its relationship with eco-innovation as discussed by the authors.
Journal ArticleDOI

Towards a new taxonomy of circular economy business models

TL;DR: A taxonomy of business models based on the degree of adoption of circularity along two major dimensions: (i) the customer value proposition and interface; (ii) the value network, i.e. the ways through which interacting with suppliers and reorganizing the own internal activities as discussed by the authors.
Journal ArticleDOI

Circular economy at the micro level: A dynamic view of incumbents’ struggles and challenges in the textile industry

TL;DR: In this paper, the authors identify a set of factors along the textile value chain, from product design to take-back and reprocessing, that are crucial in expediting or delaying a firm's aspirations to develop a circular product.
Journal ArticleDOI

Drivers to sustainable manufacturing practices and circular economy: a perspective of leather industries in Bangladesh

TL;DR: In this article, the authors have used graph theory and a matrix approach to examine the drivers of sustainable manufacturing practices in the leather industry of Bangladesh, and they have shown that knowledge of the circular economy is paramount to implementing sustainability manufacturing practices.
References
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Book ChapterDOI

The iron cage revisited institutional isomorphism and collective rationality in organizational fields

TL;DR: In this paper, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.
Posted Content

Institutions, Institutional Change, and Economic Performance

TL;DR: In this article, the authors examine the role that institutions, defined as the humanly devised constraints that shape human interaction, play in economic performance and how those institutions change and how a model of dynamic institutions explains the differential performance of economies through time.
Book

Research Methods in Education

TL;DR: In this article, the context of educational research, planning educational research and the styles of education research are discussed, along with strategies and instruments for data collection and research for data analysis.
Journal ArticleDOI

The value of the world's ecosystem services and natural capital

TL;DR: In this paper, the authors have estimated the current economic value of 17 ecosystem services for 16 biomes, based on published studies and a few original calculations, for the entire biosphere, the value (most of which is outside the market) is estimated to be in the range of US$16-54 trillion (10^(12)) per year, with an average of US $33 trillion per year.
Journal ArticleDOI

Theory Building From Cases: Opportunities And Challenges

TL;DR: The research strategy of theory building from cases, particularly multiple cases, involves using one or more cases to create theoretical constructs, propositions, and/or midrange theory from case-based, empirical evidence.
Related Papers (5)
Frequently Asked Questions (13)
Q1. What is the main bottleneck for the transition towards CE?

C2C considers blends of materials from the biological and technological cycle as the main bottleneck for the transition towards CE. 

Institutions are often seen as humanly devised constraints that shape interactions (North, 1990) and are considered to be key to structure incentives in human exchange (Coase, 1988; Williamson, 2000, 2002). 

In the Netherlands, UK, and the Nordics it is estimated that 61% of these discarded garments (postconsumer textiles), are lost in household waste, ending up in landfill or incineration. 

A promising way to share risks and rewards more fairly in circular materials flows is to apply a so-called “dynamic earning model”, which also motivates companies to be more innovative(Turntoo, 2015). 

More specifically new forms of organizations, such as contracts and arrangements between firms participating in circular metabolisms, can eventually result in altering more general rules in society, thus starting a process of transition at a wider scale (Dacin et al., 2002). 

In their business model, customers can lease a pair of jeans for V 7,50 per month after paying an entrance (or membership) fee of V 25,-. 

being deeply embedded in rich empirical data, building theory from cases often generates theory that is testable, accurate, and noteworthy (Eisenhardt and Graebner, 2007). 

When the product returns to the company after use, cascading activities, like leasing again, refurbishing or harvesting materials, take place. 

These pose the conditions for the emergence of novel organizational forms between firms, in which, similarly to any other inter-firm networking, collaboration is explored in order to take full advantage of a circular metabolism, whilst limiting its costs (Grandori, 2012). 

Due to the scarce availability of optimized materials in this developing phase, it is impossible to change the whole collection of a brand at once. 

These are often synthetic or mineral materials and are used in a lot of consumer goods such as electronics, furniture, and cars (Braungart and McDonough, 2002). 

A problem arises from the way financial institutions assess business plans in order to grant funding: when businesses, for instance, apply for a loan to fund a project, the bank often uses a checklist to assess whether the project is likely to be successful. 

The second cluster of cases are for-profit organizations/businesses that have been experimenting and acting as frontrunners in the transition process to circular materials flows in the Dutch textile industry. 

Trending Questions (1)
What researches have been done for providing theoretical grounds to Circular Economy?

The paper discusses the lack of a unified theory on the institutions of circular economy and compares empirical evidence from the textile industry in the Netherlands to build a conceptual framework.