The circular economy (CE) presents a sustainable alternative to the traditional linear economy by reducing resource consumption, waste, emissions, and energy leakage through regenerative systems (de Jesus & Mendonça, 2018; Wuni, 2022).Unlike the linear model, which depletes natural resources and disrupts ecosystems, CE focuses on efficient resource use, extending product lifespans, and reducing waste during production and consumption (Bressanelli et al., 2018; Kirchherr et al., 2018). Key elements of CE include analyzing materials used in manufacturing, addressing product obsolescence, and building infrastructure for reprocessing materials (Fernandes et al., 2020; Guldmann & Huulgaard, 2020; Tahu et al., 2020). CE also offers economic and strategic benefits, such as improved resource utilization and job creation (Kiefer et al., 2019), but adoption faces challenges, including high innovation costs and resistance from traditional economic models (de Jesus & Mendonça, 2018; Korhonen et al., 2018). The construction sector plays a significant role in the shift towards CE due to its massive ecological impact, resource depletion, and greenhouse gas emissions (Hina et al., 2022; Wuni, 2022). The sector exemplifies the linear economy but holds potential for CE integration, though it faces obstacles such as resistance to change and low levels of digitization (Munaro & Tavares, 2023; Wuni, 2022). CE adoption is further complicated by conflicting ideological and cultural views on sustainability, resulting in ambiguity (Leitch & Davenport, 2007; Rödl et al., 2022). Ineffective organizational communication about CE exacerbates these issues, leading to disengagement and jeopardizing project success (Giorgi et al., 2022).
This paper explores the critical role of organizational communication in adopting CE principles in the construction sector, arguing that clear and effective communication strategies are essential for overcoming resistance and ensuring successful circular project implementation (Rödl et al., 2022). By addressing this gap in research, the study seeks to understand how communication can advance CE practices within the industry. Specifically, our research question is: How do stakeholders' barriers to adopting circular solutions relate to organizational communication?
Our research makes two significant contributions to the field. While prior studies have extensively documented the identification and existence of technological barriers to adopting circular solutions (Kirchherr et al., 2018; Wuni, 2022) there still needs to be more research on the impact of organizational communication on these barriers. Investigating this dimension is critical, as robust organizational communication is pivotal in fostering the adoption of circular practices (Olawumi et al., 2018) . Additionally, while earlier studies have addressed the identification of multiple barriers, little research has examined the dynamics among stakeholders in relation to these barriers. The interactions among stakeholders are likely to be crucial as they can enhance the understanding and identification of potential solutions through effective organizational communication, thus helping to overcome the barriers to implementing circular solutions. Our study will employ the Focus Group Discussion (FGD) method to analyze this interplay and assess how organizational communication can address and mitigate these barriers.
Rogers' Diffusion of Innovations Theory (2003) has recently been applied to circular economy-oriented business model innovations (BMI) to understand how these models are adopted and spread within industries (Larsen, 2011; Rocca et al., 2023). Circular business models, distinct from traditional and sustainability-oriented models, focus on creating and capturing value through circular principles (Jillbert et al., 2023; Rocca et al., 2023). Rogers' framework (2003) identifies four elements critical for diffusion: innovation, communication channels, time, and the social system. In the circular economy context, innovations often involve cyclic production and waste management processes, necessitating effective communication to facilitate broader adoption.
The theory's innovation-decision process—comprising knowledge, persuasion, decision, implementation, and confirmation—provides a structured framework for understanding the adoption of circular solutions. The knowledge phase involves awareness, application, and principles of knowledge, establishing a foundation for understanding circular solutions. The persuasion phase evaluates perceptions and attitudes, influencing willingness to adopt. The decision phase assesses industry readiness, followed by the implementation phase, where practical challenges are encountered. The confirmation phase determines the sustained use or rejection of the innovation based on outcomes (Rogers, 2003).
Adopting circular solutions also depends on their perceived attributes, including relative advantage, compatibility, complexity, trialability, and observability(Rogers, 2003).Relative advantage and compatibility are crucial in the construction industry, where traditional values and scepticism towards second-hand materials hinder adoption. The study highlights the importance of understanding how social systems and industry norms influence the adoption and implementation of circular models. Rogers' framework provides critical insights into the barriers and facilitators for innovation diffusion (Larsen, 2011; Peansupap & Walker, 2006).
This study employs focus group discussions (FGD) as a research method to identify and explore the barriers to adopting circular solutions within the construction industry. Existing research on the barriers to adopting circular solutions has predominantly utilized quantitative methods (Kirchherr & van Santen, 2019), primarily to focus on the frequency and spread of these barriers. This qualitative approach aims to provide a deeper understanding of industry-specific challenges and elucidate the interplay between stakeholders at an organizational level. By doing so, the research seeks to uncover nuanced insights from stakeholders directly involved in the sector and identify effective strategies to mitigate the barriers to adopting circular solutions in the construction industry. FGDs are recognized as a valid way to examine the interplay between stakeholders on a specific topic n efficient and effective method for engaging many participants (Tracy, 2013). The data derived from FGDs benefit from a phenomenon known as the "group effect," where participants exhibit reduced inhibition, especially when interacting with peers, enhancing the likelihood of insightful self-disclosure that may not surface during one-on-one interviews (Tracy, 2013)
The focus group consisted of 13 industry and academia participants, all contributing to the Horizon Europe project on circular economy in construction. This diverse yet homogeneous group, engaged in various capacities within the sector, provided valuable perspectives on the barriers and potential strategies for implementing circular solutions. The multidisciplinary nature of the participants ensured a comprehensive exploration of the challenges and opportunities associated with advancing circular economy practices in the construction industry.
A cluster of potential questions has been developed to gain insights into the practical barriers experienced by industry professionals in the adoption of circular solutions. The questions posed to the participants were designed to probe their experiences and perceptions regarding the obstacles to implementing circular economy practices within the construction sector. An example of one such question is as follows- Based on your experience and perceptions, what are the key barriers to circularity in the Architecture, Construction and Engineering sector? Additionally, inquiries were extended to understand variations in these barriers across different sectors and geographic regions. The discussion also explored potential collaborative strategies that could be employed to overcome these challenges and effectively promote circular economy principles across the industry.
The thematic analysis of the 50-minute focus group discussion was conducted following (Braun & Clarke, 2006) methodological framework, involving five rounds of detailed coding to categorize emerging patterns and identify barriers and facilitators to adopting circular economy practices. This analysis focused on the role of organizational communication in the construction industry. Manual coding, cross-verified with AI-generated codes using Atlas. Ti's AI coding feature was preferred for its ability to capture nuanced contextual insights. The identified themes were aligned with theoretical concepts, highlighting how communication influences the adoption of circular solutions and ensuring a comprehensive understanding of the challenges and enablers in advancing circular economy practices within the sector.
The analysis identified three critical organizational communication characteristics influencing the adoption of circular economy solutions in the construction sector: Trust, Information, and Accountability.
Trust is shaped by value, information, and accountability. Value is critical in establishing trust, particularly in recycled and refurbished materials' perceived quality and reliability. Participants noted the stigma attached to second-hand items and emphasized the need for guarantees to improve trust. One participant explained, "If tenants receive a company-refurbished radiator instead of a new one, will they view it as inferior quality?" This highlight concerns over societal perceptions and the need for effective communication strategies to enhance trust.
Information emerged as a significant barrier to adopting circular solutions, mainly due to a lack of accessible and detailed data on economic benefits, technical specifications, and replicability. Participants emphasized that well-informed consumers and businesses are more likely to adopt circular practices. One participant noted, "From my discussions with Dutch architects, they are enthusiastic about incorporating sustainability, but their clients do not request it nor provide the necessary budget." This underscores the gap between stakeholder interest and practical implementation, hindered by limited information.
Accountability was closely linked to responsibility and ownership. Participants expressed concerns about unclear accountability for second-hand materials, especially regarding quality assurance. Ownership emerged as a critical aspect, with questions about who should be held accountable for the quality of refurbished materials. A participant highlighted this by stating, "In the case of a new window, the manufacturer typically assumes responsibility, but if it's used, the producer will not accept this burden." This emphasizes the need for clear accountability to build trust in circular solutions.
In summary, enhancing trust through value, improving information accessibility, and clarifying accountability are essential to advancing circular economy practices in the construction industry.
Our findings indicate that while awareness of circular solutions is increasing, communication inefficiencies have resulted in fragmented implementation, suggesting a disconnect between the availability of these solutions and their effective dissemination. Time also plays a significant role, as longer-known solutions achieve good integration. Social structures further complicate adoption, with selective implementation across different industry sectors and social groups, significantly influencing the success rate of circular economy practices in construction.
Using Rogers' Diffusion of Innovations Theory (Rogers, 2003), the study highlights the importance of knowledge in the innovation-decision process, showing that a lack of practical "how-to" knowledge due to inadequate communication channels hinders the practical application of circular solutions. Trust is essential during the persuasion stage, where concerns about the quality and reliability of recycled materials inhibit adoption, particularly in housing projects. Accountability is also critical, as guarantees for recycled products significantly enhance trust and adoption rates.
The relative advantage and compatibility attributes were particularly salient in influencing the adoption of circular solutions. While potential cost savings and environmental benefits are recognized, the social stigma associated with recycled materials, especially in social housing, undermines their perceived value. Compatibility issues arise as circular solutions often clash with traditional values in the construction industry, where new materials symbolize success and permanence.
In conclusion, trust, information, and accountability are vital for advancing circular practices in construction. Effective communication ensures stakeholders receive clear, credible information, which is essential for building trust and bridging the gap between knowledge and adoption. Improving communication strategies will help align circular solutions with industry values, increasing their acceptance and integration.
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