The difficulties in finding value in waste: linking institutional dynamics and circular business model development

Abstract This paper explores how institutional forces, such as regulations, industry standards, and market expectations, interact and shape circular business models. It examines the dynamic interplay of coercive, normative and mimetic pressures and their influence on circular business models, i.e., value that is created, offered, and captured. To do so, we analyze both the organizational field (including actor roles, perceptions of waste, collaboration, circular activities, and strategies) and the material field (such as material availability, data flows, and product norm development). Following a qualitative research approach over a time span of one year in the construction industry in Austria, we identify three distinct pathways through which institutional pressures influence circular value creation, offer, and capture. Each pathway varies in its ability to steer institutional field development for circular business models, shaping organizational and material fields. Our findings provide insights for managers and policymakers on how to foster circular business models, ultimately enhancing waste valorization in the construction sector.