Short answer
Focus on both external pressures and internal learning capabilities to successfully implement circular economy models.
- Field
- Resource Management
- Source
- Journal of Infrastructure Policy and Development (2023)
- Method
- Quantitative research using structural equation modelling (SEM).
- Sample
- 159 companies
- Evidence
- Moderate effect
Organizations are more likely to transition to a circular economy when external pressures and opportunities are present, and their ability to absorb and utilize new knowledge is crucial, though not the sole determinant. This resource management research insight is drawn from a 2023 study published in Journal of Infrastructure Policy and Development. Using Quantitative research using structural equation modelling (sem). with 159 companies, researchers explored how this design variable affects real-world outcomes. The key design takeaway: Focus on both external pressures and internal learning capabilities to successfully implement circular economy models.
External environmental factors significantly drive circular economy adoption, with knowledge assimilation playing a partial mediating role.
Organizations are more likely to transition to a circular economy when external pressures and opportunities are present, and their ability to absorb and utilize new knowledge is crucial, though not the sole determinant.
Journal of Infrastructure Policy and Development · 2023
Key Findings
- 01Knowledge assimilation partially mediates the relationship between the external environment and the transfer to a circular economy.
- 02The direct effect of the external environment on the transition to a circular economy is more significant than its indirect effect through knowledge assimilation.
Application
Design takeaway
Focus on both external pressures and internal learning capabilities to successfully implement circular economy models.
How to apply
When developing circular economy strategies, conduct thorough analyses of the external environment (e.g., policy landscape, competitor actions, consumer trends) and assess the organization's current capacity for knowledge assimilation.
Project actions
- 01When researching circular economy solutions, consider how external factors like government policies or resource scarcity might influence adoption.
- 02Investigate how a company's ability to learn and adapt (knowledge assimilation) affects its progress towards circularity.
Method & Evidence
Variables
Strengths & Limitations
Strengths
- +Employs advanced statistical methods (SEM) for robust analysis.
- +Investigates a timely and critical topic: the circular economy transition.
Limitations
The findings might be specific to the surveyed region and company types. The study relies on self-reported data, which can be subject to bias.
Reliability & validity
Reliability would be assessed by the consistency of survey responses and the robustness of the SEM model. Validity would be addressed by ensuring the survey measures accurately reflect the constructs of external environment, knowledge assimilation, and circular economy transfer.
Think critically
To what extent can a company proactively shape its external environment to facilitate a circular economy transition, rather than merely reacting to it?
Design Principles
"External drivers are primary catalysts for circular economy transitions, with internal knowledge assimilation acting as a supportive mechanism."
Understanding the interplay between external forces and internal knowledge processes is vital for designing effective strategies for circular economy implementation. Designers and businesses can leverage this insight to identify key drivers and barriers, and to foster the necessary conditions for a successful transition.
What This Means for Your Design
Moving to a circular economy is more about reacting to what's happening outside the company (like new laws or customer demands) than just learning new things internally, although learning does help a bit.
How to use in your project
- 1.Reference this study when discussing the external factors influencing your design choices for a circular product or system.
- 2.Use the findings to justify why addressing market demands or regulatory changes is critical for the success of your design.
Add to My Project
Quick Cite
Paragraph starter
The transition to circular economy models is significantly influenced by external environmental factors, with knowledge assimilation playing a partial mediating role. Research indicates that direct external pressures and opportunities often have a stronger impact on adoption than internal learning processes alone, suggesting that a comprehensive design strategy must address both the external landscape and internal absorptive capacities.
Source
Journal of Infrastructure Policy and Development
The impact of the external environment on transferring from linear to circular economy with the mediating role of knowledge assimilation
journal · 2023
View sourceQuestions About This Research
- What does the research say about external environmental factors significantly drive circular economy adoption, with knowledge assimilation playing a partial mediating role?
- Focus on both external pressures and internal learning capabilities to successfully implement circular economy models. Evidence: Journal of Infrastructure Policy and Development (2023).
- Why does "External environmental factors significantly drive circular economy adoption, with knowledge assimilation playing a partial mediating role." matter for design?
- Understanding the interplay between external forces and internal knowledge processes is vital for designing effective strategies for circular economy implementation. Designers and businesses can leverage this insight to identify key drivers and barriers, and to foster the necessary conditions for a successful transition.
- How can designers apply this research?
- Focus on both external pressures and internal learning capabilities to successfully implement circular economy models.
- What were the main findings?
- Knowledge assimilation partially mediates the relationship between the external environment and the transfer to a circular economy.. The direct effect of the external environment on the transition to a circular economy is more significant than its indirect effect through knowledge assimilation.
- What research method was used?
- Quantitative research using structural equation modelling (SEM). with 159 companies.
- How strong is the evidence?
- Evidence strength is rated Moderate effect, based on a 2023 journal from Journal of Infrastructure Policy and Development.
- What should I do differently in my next project?
- When developing circular economy strategies, conduct thorough analyses of the external environment (e.g., policy landscape, competitor actions, consumer trends) and assess the organization's current capacity for knowledge assimilation.
- What are the limitations?
- The study focused on Nordic capital companies in Estonia and Lithuania, potentially limiting generalizability to other regions or company types. The CATI method might introduce biases.