Abstract | Abstract Purpose The circular economy has been attracting more interest over the years with academics, industry, and the wider society. The idea of a transition from a linear economy to a circular economy is well understood in academia and simplistic by nature. However, the challenges and barriers to this transition at all levels, macro, meso and micro are fundamentally complex and have wide consequences largely on the economic front but also on the method by which business is creating value propositions and generating revenue. Moreover, it is a huge shift in the way business is conducted and requires new ways of thinking and delivering products and services. It requires a paradigm shift in our intellectual capital to imagine new methods of maintaining a standard of living through products and services, whilst respecting the natural/finite resources, the natural world and social context. This research concentrates on the micro level and focuses on SMEs' transition to circular economy, by developing a model of readiness. This verified model aims to measure the level of readiness of manufacturing SMEs on their journey to circularity from the human side of the organisation rather than the capacity of the organisation to make the change. Design/methodology/approach The conceptional model and instrument were developed from previous research associated with organisational change in other areas such as Lean, Six Sigma, and TQM and contextualised to circular economy through known barriers sought from the research. Due to the nature of the application to SMEs, it was specifically designed to be as unintrusive, simple to disseminate and as time efficient as possible. Experience working in SMEs for many years influenced the decision to avoid anything complex, time-consuming, and requiring huge effort to operationalise. This conceptual model and instrument (questionnaire) have been verified using a Delphi survey technique. It was conducted through two iterations of the survey. Experts from academia and industry were participants in the study and through anonymous feedback helped to shape and verify the conceptual model and instrument, thus ii modifying and making changes along the way. This verified model and instrument, (diagnostic) were then entered into the validation process. Findings It has emerged that there are many barriers for SMEs in consideration of opting to use the instrument and diagnostic. The first issue is where SMEs are on their journey to circularity and their leaders’ current level of understanding. Even the terms and language used in the instrument (diagnostic) were questioned as to “what it means”, by organisations’ leaders. The second barrier to validating the model and Instrument, (diagnostic) is an SME being aware of the value proposition and being persuaded of the value in use, co-creation of value through applying the diagnostic and realising the benefits of doing so. Practical implications Leaders who see merit in assessing attitudes and beliefs associated with the barriers and common aspects of organisational change will understand the challenges of a journey to circularity. The benefits of using this diagnostic will enable leaders and business owners to develop a strategy of change based on perceived readiness from the evaluation. They will be able to conceive change interventions such as enhanced communication, training, coaching, and recruitment depending on how they perceive their feedback. Having the commitment and belief to use the diagnostic and energy and resilience to take action are key to value co-creation. Originality/value The proposed model and instrument are relevant as a strategic diagnostic tool for SMEs to disseminate easily and for a relatively small amount of effort, be able to ascertain feedback that will be helpful in terms of making strategic choices around their continued approach to circularity. There is no other diagnostic that measures attitudes and beliefs about the journey to circularity that aids strategic planning. |
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