| 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
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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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