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Circular Economy in the Construction Industry: Barriers and Drivers for the Implementation of Circularity in Family‐Owned Construction Companies in Germany

Year: 2025

Type: article

Abstract: ABSTRACT The circular economy can enhance business sustainability, but its implementation requires the integration of circularity into business models. Circular business model innovation (CBMI) is complex, influenced by multiple barriers and drivers. This research conducts a qualitative case study via semistructured interviews to explore CBMI within the German construction industry and family‐owned businesses. While findings resonate with existing literature, the context of the construction industry and of family ownership introduces specific dynamics. For instance, we find that family ownership can act as both a driver and a barrier to CBMI, fostering long‐term strategic vision while simultaneously reinforcing conservative tendencies, hindering change. Additional notable results include the importance of intergenerational knowledge transfer, an emphasis on slowing resource loops due to long building lifecycles (50–100 years), and the opportunities presented through lobbying efforts to shape policy and industry standards. Accordingly, these interactions necessitate tailored strategies for successful circular transitions.

Source: Business Strategy and the Environment

DOI: 10.1002/bse.4296

Authors: Elena Elisabeth Vollmers, Thomas B. Long

Institutions: University of Groningen, Ecole des Hautes Etudes Commerciales du Nord

Language: English

Topic: Sustainable Supply Chain Management

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Responsible consumption and production, Decent work and economic growth

Open Access status: green

OpenAlex ID: W4409423151

FWCI: 7.106

Cites: 71

Cited by: 8

Related to: 10