The transition from a linear to a circular economy through a multi-level readiness framework: An explorative study in the heavy-duty vehicle manufacturing industry

Abstract

This study explores the perceptions and implications of a large manufacturing company as it shifts toward a circular economy. It devises a guiding framework to facilitate this transition by delving into key focus areas, informed by a systematic literature review. From this review emerges a multi-level readiness framework tailored to facilitate the transition to a circular economy. This framework is validated through a case study conducted in the heavy-duty vehicle industry. The proposed readiness framework encapsulates four key focus areas: 1) the ecosystem of external partners, 2) the customer and the business model, 3) the company's culture and internal capabilities, and 4) design and product development. Moreover, the framework delineates five levels of readiness progression within each focus area. Strategies and indispensable activities essential for transitioning to a circular economy are outlined. The suggested hands-on readiness framework advocates holistic and cross-functional management approaches to navigate the transition toward a circular economy. The readiness status for the transition ranges from initial developmental stages to full circularity, with each level outlining actionable pathways incorporating specific actions and strategies.

Keywords

• L60
• L70