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A Circular Economy Approach in Textile Industry: Perceived Drivers and Barriers Towards Circular Business Model Innovation

Jefimova, V (2024) A Circular Economy Approach in Textile Industry: Perceived Drivers and Barriers Towards Circular Business Model Innovation. Bachelor thesis, Global Responsibility & Leadership (GRL).

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Abstract

The textile industry is one of the most polluting industries in the world (UN Alliance Aims…, 2018; Niinimäki et al., 2020). With the accelerating climate crisis, there is a rising urgency to change the unsustainable practices of the sector. Transitioning from linear to circular business models (CBM) could potentially offer a solution to this acute problem. This thesis aimed to shed light on the perspectives of the Estonian textile industry on circular economy (CE) and discover the drivers and barriers of circular business model innovation (CBMI) in a less researched Eastern European textile industry. To achieve these results, the method of semi-structured interviews was implemented. Seven interviews with micro, small and medium-sized companies from different textile sectors were conducted. The findings indicate that even though CE is a rising trend in the textile industry, there exists a difficulty in grasping how circularity could efficiently work in the sector. Furthermore, ten drivers and 14 barriers for CBMI were identified and clustered into four categories of: mindset, market, operations and legislation. Some of the noteworthy drivers were found to be aligning organizational values with circularity and having a database for sourcing textile waste materials and partners. For the prominent barriers of CBMI, it was found how companies struggle with financial constraints, little demand for circular products from customers and competition with fast fashion brands. With the CE trend on the rise, the findings of this study provide a valuable overview of what could be potential bottlenecks and facilitators for businesses who are interested in becoming more circular. Moreover, the results can help the policymakers, and other facilitators make more informed choices in promoting circular fashion. Further quantitative research is advised to analyze the dynamics of drivers and barriers for CBMI in the non-Estonian textile industry. Keywords: circular business model implementation, circular business model, circular economy, textile industry.

Item Type: Thesis (Bachelor)
Name supervisor: Kilian, S.K.
Date Deposited: 06 Jun 2024 09:30
Last Modified: 06 Jun 2024 09:30
URI: https://campus-fryslan.studenttheses.ub.rug.nl/id/eprint/434

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