Exploring the Circular Economy Potential for Enhancing Environmental Sustainability with Eco-Innovation Framework Integration to Overcome Business Model Barriers

Abstract

This thesis investigates the co-operative potential of integrating an eco-innovation framework with circular economy principles overcoming the circular business model barriers. This is done with a hypothesis that eco-innovation integration with circular economy will advance environmental sustainability across diverse organizational and geographical contexts. While attempting this study, I started by recognizing the limitations of the linear economic model as well as circular economic model and the imperative for sustainable business practices should start with innovation not just the strategy alone, hence this thesis explores the challenges and opportunities associated with implementing circular economy first. For this, I collected secondary data on exploring the potential for eco-innovation integration with circular economy, followed by analysis on multiple case studies (across six continents namely Africa, Asia, Europe, Latin America, North America, and Oceania) to identify critical barriers hindering effective circular economy implementation. The study then examines how an eco-innovation framework can be strategically leveraged to overcome these barriers and drive enhanced environmental performance. Though, I was able to find 141 case studies from the literature (Ellen Macarthur Foundation), in this thesis, only 41 case studies (Africa - 6, Asia - 13, Europe - 5, Latin America - 7, North America - 7 , and Oceania – 3). In each case study, I first understood how the circular economy was implemented and explored the barriers, then based on the learnings from the previous research question on eco-innovation and circular economy potential strategies were explored followed by understanding on the eco-innovation enabled environmental sustainability through circular practices. This is repeated for each of the case study in selected geographical locations.
Findings reveal that successful implementation necessitates context-specific strategies, particularly when considering the distinct socio-economic conditions of the Global South versus the Global North. Furthermore, I assessed the business implications of adopting an integrated eco-innovation and circular economy approach, including impacts on financial performance, competitive advantage, and stakeholder engagement. Based on my observations, I concluded this thesis by providing key findings as a summary, which can be considered by organizations seeking to transition towards more sustainable business models. Lastly, I also explored limitations of this thesis, along with avenues for future research.
Key words: Circular Economy Implementation Barriers, Eco-Innovation Framework, Case Study Research, Circular Economy in Global North vs. Global South, Environmental Sustainability