Short answer
When designing for SMEs aiming for circularity, proactively identify and mitigate internal resistance to change and resource constraints, while also designing for adaptability to external technological, market, and regulatory shifts.
- Field
- Sustainability
- Source
- Journal of Cleaner Production (2022)
- Method
- Qualitative research
- Sample
- 59 participants
- Evidence
- Strong effect
Small and medium-sized enterprises face significant internal challenges like risk aversion and short-term thinking, alongside external hurdles in technology, market, legislation, and societal acceptance, hindering their transition to a circular economy. This sustainability research insight is drawn from a 2022 study published in Journal of Cleaner Production. Using Qualitative research with 59 participants, researchers explored how this design variable affects real-world outcomes. The key design takeaway: When designing for SMEs aiming for circularity, proactively identify and mitigate internal resistance to change and resource constraints, while also designing for adaptability to external technological, market, and regulatory shifts.
Internal and external barriers impede SME circular economy adoption.
Small and medium-sized enterprises face significant internal challenges like risk aversion and short-term thinking, alongside external hurdles in technology, market, legislation, and societal acceptance, hindering their transition to a circular economy.
Journal of Cleaner Production · 2022
Key Findings
- 01Six company-internal barriers identified: risk aversion, short-term orientation, economically dominated thinking, unwillingness to engage in trade-offs, shortage of resources, and lack of knowledge.
- 02Four levels of company-external barriers identified: technology, market, legislative, and society and consumers.
- 03Interrelationships between these barriers were mapped and integrated into a sustainable strategic management framework.
Application
Design takeaway
When designing for SMEs aiming for circularity, proactively identify and mitigate internal resistance to change and resource constraints, while also designing for adaptability to external technological, market, and regulatory shifts.
How to apply
When developing circular economy solutions for SMEs, conduct thorough stakeholder analysis to understand their specific internal constraints (e.g., financial, knowledge) and external market dynamics (e.g., available technologies, regulatory support).
Project actions
- 01When researching barriers for a design project, consider both what's inside the company (internal) and what's outside (external).
- 02Think about how different barriers might be connected, for example, how a lack of knowledge might lead to risk aversion.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Comprehensive identification of a wide range of barriers.
- +Integration of barriers into a strategic management framework provides a holistic view.
Limitations
The specific barriers and their intensity can differ greatly depending on the industry, size of the company, and geographical location.
Reliability & validity
The study's validity is enhanced by the use of semi-structured interviews allowing for in-depth exploration of barriers. Reliability is supported by the systematic analysis of interview data to identify recurring themes and barriers across multiple participants.
Think critically
How might a designer's approach to innovation need to change when targeting SMEs compared to large corporations, given the identified barriers?
Design Principles
"Anticipate and address systemic barriers to adoption when designing for complex system transitions like the circular economy."
Understanding these multifaceted barriers is crucial for developing effective strategies and support systems that enable SMEs to successfully integrate circular economy principles into their operations. This knowledge can inform policy-making, industry initiatives, and the design of business support services.
What This Means for Your Design
Businesses, especially smaller ones, find it hard to become 'circular' (reusing materials and reducing waste) because they are often scared of risks, only think about short-term profits, don't have enough resources or knowledge, and face difficulties with technology, laws, and what customers want.
How to use in your project
- 1.Reference this study when discussing the challenges of implementing sustainable design strategies, particularly within SMEs.
- 2.Use the identified barriers to justify the need for specific design interventions or to explain why certain sustainable solutions might be difficult to implement without addressing underlying issues.
Add to My Project
Quick Cite
Paragraph starter
Research indicates that small and medium-sized enterprises (SMEs) face significant internal and external barriers to adopting circular economy principles. Internal challenges include risk aversion, short-term financial focus, resource scarcity, and a lack of knowledge, while external barriers encompass technological limitations, market acceptance, legislative frameworks, and societal consumer behavior (Takacs et al., 2022). These factors collectively impede the integration of sustainable strategic management and circular practices within these businesses.
Source
Journal of Cleaner Production
Barriers to a circular economy in small- and medium-sized enterprises and their integration in a sustainable strategic management framework
journal · 2022
View sourceQuestions About This Research
- What does the research say about internal and external barriers impede sme circular economy adoption?
- When designing for SMEs aiming for circularity, proactively identify and mitigate internal resistance to change and resource constraints, while also designing for adaptability to external technological, market, and regulatory shifts. Evidence: Journal of Cleaner Production (2022).
- Why does "Internal and external barriers impede SME circular economy adoption." matter for design?
- Understanding these multifaceted barriers is crucial for developing effective strategies and support systems that enable SMEs to successfully integrate circular economy principles into their operations. This knowledge can inform policy-making, industry initiatives, and the design of business support services.
- How can designers apply this research?
- When designing for SMEs aiming for circularity, proactively identify and mitigate internal resistance to change and resource constraints, while also designing for adaptability to external technological, market, and regulatory shifts.
- What were the main findings?
- Six company-internal barriers identified: risk aversion, short-term orientation, economically dominated thinking, unwillingness to engage in trade-offs, shortage of resources, and lack of knowledge.. Four levels of company-external barriers identified: technology, market, legislative, and society and consumers.. Interrelationships between these barriers were mapped and integrated into a sustainable strategic management framework.
- What research method was used?
- Qualitative research with 59 participants.
- How strong is the evidence?
- Evidence strength is rated Strong effect, based on a 2022 journal from Journal of Cleaner Production.
- What should I do differently in my next project?
- When developing circular economy solutions for SMEs, conduct thorough stakeholder analysis to understand their specific internal constraints (e.g., financial, knowledge) and external market dynamics (e.g., available technologies, regulatory support).
- What are the limitations?
- The study is focused on Swiss SMEs, and findings may vary in different geographical and economic contexts. The identified barriers are interconnected, making it challenging to isolate the impact of individual factors.